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