Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
23 Cards in this Set
- Front
- Back
|
What does the demand line represent?
|
the amount of consumers that desire a product
|
|
|
What does the supply line represent?
|
the amount of product the producers are willing to sell
|
|
|
What is the market value?
|
the price most people are willing to pay for an item
|
|
|
How do you find the market value?
|
the intersection of the supply and demand lines
|
|
|
What is the law of supply and demand?
|
The higher the price, the molre the producers are willing to supply. The lower the price the more the consumers are willing to buy.
|
|
|
What is a household?
|
anyone who has land, labor, capital, or entrepreneurship to sell in resource markets
|
|
|
What is a product market?
|
a market where finished goods and services are bought or sold
|
|
|
What is a resource market?
|
a market where the factors of production or economic resources are bought and sold
|
|
|
What is capital?
|
money
|
|
|
What are public goods and services?
|
goods and services provided by the government because individuals could not supply them efficiently
|
|
|
What are some examples of public goods and services?
|
public park
library post office jail interstate police department |
|
|
How does the government pay for public goods and services?
|
taxes and borrowed funds
|
|
|
What is the role of financial institutions in public goods and services?
|
receive deposits
encourage saving and investment by interest make loans |
|
|
What is a proprietorship?
|
A type of business that is owned and managed by one individual who receives all profits and bares all losses
|
|
|
What is a partnership?
|
A type of business owned and managed by two or more individuals who share all profits and losses
|
|
|
What is a corporation?
|
A type of business that is owned by stockholders and has rights and responsibilities as if it were a person
|
|
|
What are the advantages of a proprietorship?
|
easy to start aand go out of business
|
|
|
What are the benefits of a proprietorship?
|
-easy to start and go out of business
-control over profits and business operations -pride of ownership -lower taxes |
|
|
What are the disadvantages of a proprietorship?
|
-unlimited liability
-difficult to raise capital -responsible for all losses -management knowledge limited |
|
|
What are the benefits of a partnership?
|
-easier to raise capital
-can combine management skills -pride of ownership -lower taxes |
|
|
What are the disadvantages of a partnership?
|
-unlimited liability
-shared profit -possible conflict of partners -possibility of instability after death of a partner |
|
|
What are the benefits of a corporation?
|
-limited liability
-greater financial capital -unlimited life -specialized management |
|
|
What are the disadvantages of a corporation
|
-increased taxation
-difficult to start a corporation because of different state laws -may be larger of bureaucratic than other businesses -increased government control |
