2.01
A type of producer that constructs roads bridges buildings houses.
Builders
The quantity of a good or service that buyers are ready to buy at a given price at a particular time.
Demand
A modified command economic system in which government owns the basic means of production and allows private ownership of businesses as well.
Socialism
An individual who invents develops and distributes a good or provides a service; assumes the risks of starting and building a business; and receives personal and financial rewards for her/his efforts.
1. Entrepreneur
Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid (income – expense = profit).
Profit
A type of business that performs intangible activities that satisfy the needs and wants of consumers or industrial users.
Service business
The human and natural resources and capital goods used to produce goods and services.
Economic resources
An economic system in which all or many of the means of production and distribution are owned and controlled by the government.
Command economy
An economic system in which individuals and groups rather than the government own or control the means of production–the human and natural resources and capital goods used to produce goods and services.
Private enterprise/free enterprise
Money left after the cost-of-goods expense and the operating expense are each subtracted from the total income (gross profit - operating expense = net profit).
Net profit
A business that operates out of a physical facility (instead of online).
Brick and mortar
The point at which the quantity supplied is equal to the quantity demanded.
Equilibrium
An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition.
Traditional economy
A business that employs 500 or fewer people.
3. Small business
The desire to make a profit which moves people to invest in business.
Profit motive
Intermediaries who help move goods between producers and retailers by buying goods from producers and selling them to retailers.
Wholesalers
A desire for something that can only be satisfied by spending money.
Economic want
A command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution.
Communism
A form of demand in which changes in price do not affect demand.
Inelastic demand
Monopolies that the government allows to exist legally under controlled conditions.
Regulated monopolies
The duty of business to contribute to the well-being of society.
Social responsibility
An indication of how changes in price will affect changes in the amounts demanded and supplied.
Elasticity
An economic system in which the questions of what how and for whom goods will be produced are answered by individuals and businesses in the marketplace.
Market economy
The economic process of trading one good/service for another.
Exchange
Chances of loss that may result in loss no change or gain.
Speculative risks