Economics Part 1

Front 1

What are the four basic forms of business organizations?

Back 1

Sole proprietorship, corporation, cooperative, partnership

Front 2

What is sole proprietorship?

Back 2

The most common form of small business. It is a business owned and operated by one person with complete control over its conduct and management.

Front 3

Advantages and disadvantages for sole proprietorship?

Back 3

*Easiest and least expensive form of business
*Can make decisions quickly without having to talk to a co-owner, boss, etc. This flexibility means that the owner can make an immediate dicision when problems arise.

Front 4

the alternative you face if you decide to do one thing rather than another

Back 4

trade-off

Front 5

what you must sacrifice when you decide to do something

Back 5

costs

Front 6

something that satisfies your wants

Back 6

benefits

Front 7

expenses that are the same no matter how many items of a good are produced

Back 7

fixed costs

Front 8

expenses that change with the number of products produced

Back 8

variable costs

Front 9

not having enough resources to produce all the things we would like to have

Back 9

scarcity

Front 10

the study of how individuals and nations make choices about the ways to use resources to fulfill people's needs and wants

Back 10

economics

Front 11

the driving force to improve one's material well-being and is largely responsible for the growth of the free enterprise system

Back 11

profit

Front 12

the rivalry between producers and sellers of a good and service that results in better quality goods and services at a lower price

Back 12

competition

Front 13

consumers determne what products will be produced through the power of what they purchase

Back 13

consumer sovereignty

Front 14

the value of the next best thing given up for the alternative that was chosen

Back 14

opportunity cost

Front 15

the extra cost of producing one more item

Back 15

marginal costs

Front 16

the change in total revenue that results from selling one more product

Back 16

marginal revenue

Front 17

risks

Back 17

liabilities

Front 18

rewards that are offered to try to persuade people to take certain economic actions, could be to encourage or discourage people

Back 18

incentives

Front 19

Quantity demanded equals quantity supplied.

Back 19

equilibrium

Front 20

an economy with individuals and businesses that make decisions in the economy without a lot of government interference

Back 20

Free market

Front 21

system in which citizens own most means of production

Back 21

capitalism

Front 22

economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference

Back 22

free enterprise

Front 23

choosing the alternative that has the greatest value from among products

Back 23

rational choices

Front 24

tools, machinery, and buildings used to make other products

Back 24

capital resources

Front 25

economic system in which economic decisions are made by the central government

Back 25

command market

Front 26

economic system in which central government directs all major economic decisions

Back 26

communism

Front 27

things that satisfies us

Back 27

compliments

Front 28

people who buy products for wants and needs

Back 28

consumers

Front 29

a type of corporation that is organized and operated for the purpose of providing members with goods and services

Back 29

cooperation

Front 30

type of business organization owned by many people but treated by law as though it were a person

Back 30

corporation

Front 31

the legal maximum that can be charged for a good

Back 31

price ceiling

Front 32

the legal minimum that can be charged for a good

Back 32

price floor

Front 33

the industries and services in a country that are owned and run by private companies, and not by the state or government

Back 33

private sector

Front 34

property that is not owned by the government

Back 34

private property

Front 35

something that you can choose to do or use instead of something else

Back 35

alternative

Front 36

the things that a company or person owns, that can be sold to pay debts

Back 36

assets

Front 37

people elected by the shareholders of a corporation to act on their behalf. The board hires managers to run the corporation on a daily basis.

Back 37

Board of Directors

Front 38

to make

Back 38

produce

Front 39

the industries and services in a country that aqre owned and run by the government

Back 39

public sector

Front 40

money, people, and materials available

Back 40

resources

Front 41

money borrowed and not yet paid back

Back 41

debts

Front 42

the payment of taxes twice on corporate profits

Back 42

double taxation

Front 43

individuals who start new businesses, introduce new products, and improve management techniques

Back 43

entrepreneurs

Front 44

resources necessary to produce goods and services

Back 44

Factors of production

Front 45

money used to buy the tools and equipment used in production

Back 45

financial captial

Front 46

two or more individuals join together to run the business

Back 46

general partnership

Front 47

tangible products we use to satisfy our wants and needs

Back 47

goods

Front 48

human effort directed toward producing goods and services

Back 48

human resources

Front 49

work that is performed for someone else

Back 49

services

Front 50

someone who owns stock

Back 50

shareholders

Front 51

quantity demand exceeds quantity supplied

Back 51

shortage