Basic Economic Concepts

Front 1

business risk

Back 1

The possibility that a company will have lower than anticipated profits, or that it will experience a loss rather than a profit.

Front 2

competition

Back 2

the person or people with whom one is competing, especially in a commercial or sporting arena; the opposition

Front 3

economy

Back 3

the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

Front 4

free enterprise

Back 4

an economic system in which private business operates in competition and largely free of state control

Front 5

inflation

Back 5

the action of inflating something or the condition of being inflated.

Front 6

infrastructure

Back 6

the basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise.

Front 7

monopoly

Back 7

the exclusive possession or control of the supply or trade in a commodity or service.

Front 8

profit

Back 8

a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Front 9

resource

Back 9

a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively

Front 10

scarcity

Back 10

the state of being scarce or in short supply; shortage.

Front 11

land

Back 11

the part of the earth's surface that is not covered by water, as opposed to the sea or the air.

Front 12

labor

Back 12

work, especially hard physical work.

Front 13

capital

Back 13

the most important city or town of a country or region, usually its seat of government and administrative center.

Front 14

entrepreneurship

Back 14

the process of starting a business or other organization. The entrepreneur develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure. Entrepreneurship operates within an entrepreneurship ecosystem.

Front 15

utility

Back 15

the state of being useful, profitable, or beneficial.

Front 16

possession utility

Back 16

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Front 17

form utility

Back 17

The process of increasing the attractiveness of a product to a group of consumers by altering its physical appearance. In a business context, form utility might involve making a product ready for consumption by converting it to a form that is more beneficial to consumers than the raw materials used to make it.

Front 18

time utility

Back 18

Utility of a good or service created by its availability at a particular time.

Front 19

information utility

Back 19

A service bureau that maintains up-to-date databases for public access.

Front 20

command economy

Back 20

an economy in which production, investment, prices, and incomes are determined centrally by a government.

Front 21

recession

Back 21

a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Front 22

depression

Back 22

feelings of severe despondency and dejection.

Front 23

surplus

Back 23

an amount of something left over when requirements have been met; an excess of production or supply over demand.

Front 24

equilibrium

Back 24

a state in which opposing forces or influences are balanced

Front 25

supply

Back 25

make (something needed or wanted) available to someone; provide.

Front 26

demand

Back 26

an insistent and peremptory request, made as if by right