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76 Cards in this Set

  • Front
  • Back
Educated guesses or predictions used as starting points for investigations
What is the basic problem in economics
scarityh of resources
best use by aynalis production possiblities
business resources
Use to explan how people react to changes
economics model
Worht more if productivity increase
A factor of prodution
use economic models to control inflation
economic philosophy
factors of production
land, labor capital teachnology entreuproneship
All goods and services that can be produce is
production possibilities
opportunity cost
next best choice
mineral resources
pure market has
no goverment control
competition is when
companies can enter and exit industries
Believe that free competion insure or make everything better
Adam smith
Signals in the market place decides how mnuch should be produce
market economy
What are the questions each economic system must answer
what, how much, and who share
There trade offs between indiviual group and social socitety
Free enterprise system
Reach when item value is less than waht you have to pay for it
diminishing marginal utility
The curve show the relationship between the price and quanity produce
what is affected by price
what is inelastic demand
necesity with no subsitute
luxury or easy to subsitute
elastic demand
when the price is to high
if the price is to low demand cause
supply and demand meet
equilibrium price
unlimited liablity oldest and most common form of business is
sole propiertor ship
unlimited liabilty of two or more people is
Alouds stock holder to vote
Common Stock
Stock holders can't vote
Preferred stock
no voice in management
limited partnership
officers are hire by boards of directors
ban money and help small businesses
small business administration
uses competiveadvertising
Monopolistic competition
Boards of directors of competing companys have many of the same people
interlocking directorates
The law of demand still operates
pure monopoly
causes more stable prices
Outlaw of monoply of inter state trade
sherman act
prices are set by ineteractions by buyers and sellers
Perfect competition
can decrease competion
legal bariers to entry
who prevents monoply
antitrust legislation
merges of unrelated busnesses
Resouces go where they can get the higest value
Free maket
two methods are selling stocks and bonds
long term financing
makes fewer goods but have fewer disatisfid customers
quality control
4 p's of maketing
price, place, promotion, product
Price leadership
designing products on consumer wants
consumer sovereignty
4 major types of utility
form place time and ownership
sell a product cheap to get in the market
penetration pricing
begin in the 1920-and 1930
depend on the type of product
visual representation of data
what a group believe is important
the ability to start a business
the best use of resources
economic efficiency
combines maarket and command economics
mixed economic system
indiviual owns all factors of production
goods own by indiviuals
private property
buyers seller work out the exchange
voluntary exchange
prices rise but the income does not
real income effect
partnership set up for unlimited amount of time and possible purose
joint venture
file by a business to get a charter by state
articles of incorporation
selling business name
create by legal barries to entry
government monopoly
two co's in same business
horizontal merger
co can undersell all others
natural monopoly
a merger in which a business that is buying from or selling to another business merges with that business
verticall merger
right to exclusive manfacture
raising money for a company by selling stock in the company
equity financing
max amount company can borrow
line of credit
production process in which machines do the work and people oversee them
credit extended by a seller to a business buying goods
trade credit
money owed to a business by its customers
accounts receivable
written agreement to repay a loan by a specified time and with a specified rate of interest
promissory note
breaking down of a job into small tasks
division of labor
sophisticated computer-controlled machinery that operates an assembly line