Economic Fundamentals
The struggle between businesses (like Coca Cola vs. Pepsi) to attract customers by lowering prices or improving quality.
Competition
The most common form of business organization, owned and run by one single person.
Sole Proprietorship
The tools and equipment used to produce a good or service by a business.
Capital
The "Father of Economics" who wrote The Wealth of Nations in 1776
Adam Smith
The first 10 amendments to the Constitution that protect individual rights.
Bill of Rights
The driving force that encourages people and organizations to improve their material well-being (the desire to make money).
Profit Motive
A business owned by two or more people where you share the risks and the unlimited liability.
Partnership
The risk-taking individual in search of profits who combines the other factors of production to start a new business.
Entrepreneur
A term that means "allow them to do" or "hands off" (the government should stay out of business).
Laissez-Faire
The branch of government responsible for making the laws.
Legislative Branch
The concept that the consumer is "King" and decides what succeeds by voting with their dollars.
Consumer Sovereignty
A form of business organization that can sell stocks and is recognized by law as a separate legal entity with all the rights of an individual (Limited Liability).
Corporation
An organization of workers formed to represent its members' interests in various employment matters (often fighting for higher pay).
Labor Union
The economic system where the government controls trade to increase national wealth, usually by keeping the money in their country and exporting more than importing.
Mercantilism
The two explorers sent by President Thomas Jefferson to map the new western territory and find a route to the Pacific Ocean.
Lewis and Clark
An economic system in which privately owned business have the freedom to operate for a profit with limited government intervention.
Free Enterprise
A business arrangement where you pay a fee to a parent company (like McDonald's) in exchange for training, a menu, and a proven system.
Franchise
When workers refuse to work in order to protest low pay or bad working conditions.
Strike
Adam Smith's metaphor describing how self-interest and competition unknowingly help society, as if guided by an unseen force.
Invisible Hand
The severe economic crisis starting in 1929 where banks failed, and unemployment reached 25%.
The Great Depression
The act of buyers and sellers freely and willingly engaging in market transactions (both sides agree to the trade).
Voluntary Exchange
An organization like the Red Cross that operates like a business to promote the collective interests of its members rather than seeking financial gain for owners.
Nonprofit Organizaiton
The difference between Mediation and Arbitration
Mediation: suggests a solution. Arbitration: judges and decides solution
This is the specific tool management uses to fight union by refusing to let employees enter the workplace.
Lockout
The scandal in the 1970s that forced President Richard Nixon to resign from office.
Watergate