Key Terms Itb

Front 1

Wants

Back 1

Things that a person does not have to have to survive, but would like to have

Front 2

Needs

Back 2

Things that you must have in order to survive

Front 3

Goods

Back 3

Physical products

Front 4

Services

Back 4

Tasks that businesses perform for consumers

Front 5

Resources

Back 5

Items that people can use to make or obtain what they need or want

Front 6

Business

Back 6

Any commercial activity that seeks profit by providing goods and services to others in exchange for money

Front 7

Profit

Back 7

The money left over after a business has paid the cost of providing its goods and services

Front 8

Competition

Back 8

The contest between business to win customers

Front 9

Market research

Back 9

The gathering and analysis of information on the size, location, and makeup of a product market

Front 10

Consumer

Back 10

Person who uses goods and services

Front 11

Scarcity

Back 11

A shortage of resources

Front 12

Factors of Production

Back 12

All the economic resources necessary to produce a society's goods and services

Front 13

Natural Resources

Back 13

Raw materials from nature used to produce goods

Front 14

Labor Resources

Back 14

Individuals who make the goods and services for which they are paid

Front 15

Capital Resources

Back 15

The things used to produce goods and services

Front 16

Entrepreneurial Resources

Back 16

The people who recognize opportunities and start businesses

Front 17

Entrepreneurship

Back 17

The process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business

Front 18

Entrepreneur

Back 18

A person who recognizes a business opportunity and organizes, manages, and assumes the risks of starting and operating a business

Front 19

Economics

Back 19

The study of how individuals and groups of individuals strive to satisfy their wants and needs through making choices

Front 20

Economic Systems

Back 20

The method that a society chooses to use and distribute resources

Front 21

Market Economy

Back 21

An economic system in which economic decisions are made in the marketplace, where buyers and sellers meet to exchange goods and services, usually for money

Front 22

Price

Back 22

The amount of money given or asked for when goods and services are bought or sold

Front 23

Supply

Back 23

The amount of goods and services that producers will provide at various prices

Front 24

Demand

Back 24

The amount or quality of goods and services that consumers are willing to buy at various prices

Front 25

Equilibrium Price

Back 25

The point at which the amount still owed on the money borrowed to purchase it

Front 26

Command Economy

Back 26

An economic system in which a central authority makes the key economic decisions

Front 27

Mixed Economy

Back 27

An economic system in which economic decisions are made in the marketplace, where buyers and sellers meet to exchange goods and services usually for money

Front 28

Gross Domestic Product (GDP)

Back 28

The total value of the goods and services produced in a country in a given year

Front 29

Standard of Living

Back 29

The level of material comfort as measured by the goods and services that are available

Front 30

inflation

Back 30

A general increase in the cost of goods and services

Front 31

Deflation

Back 31

A general decrease in the cost of goods and services

Front 32

Budget Deficit

Back 32

When the government spends more on programs that it collects in taxes

Front 33

National Debit

Back 33

The total amount of money a government owes

Front 34

Budget Surplus

Back 34

A situation in which a government's revenue exceeds its a expenditures during a one-year reriod

Front 35

Business Cycle

Back 35

The rise and fall of economic activity over time

Front 36

Prosperity

Back 36

A peak of economic activity

Front 37

Recession

Back 37

A slowdown of economic acttivity

Front 38

Depression

Back 38

A deep recession that affects the entire economy and lasts for several years.

Front 39

Recovery

Back 39

A rice in business activity afeer a recession or depression

Front 40

Ethics

Back 40

moral principles by which people conduct themselves personally, socially, or professionally

Front 41

Business Ethics

Back 41

Rules based on moral principles about how businesses and employees ought to conduct themselves

Front 42

Code of Ethics

Back 42

A set of guidelines for maintaining ethics in the workplace

Front 43

Sweatshop

Back 43

A shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions

Front 44

Conflict of Interest

Back 44

Conflict between self-interest and professional obligation

Front 45

Social Responsability

Back 45

The duty to do what is best for the good or society

Front 46

Ethical Questions

Back 46

*Is it against the law?
*Even if everyone is doing it, how would I feel if someone did this to me?
*Am I sacrificing long-term benefits for short-term gains?

Front 47

Ethical Decision-Making Process

Back 47

1.Identify the ethical dilemma.
2.Discovery alternative actions.
3.Decide who might be affected.
4.List the probable effects of the alternatives.
5.Select the best alternative

Front 48

Business Cycle Model

Back 48

| Prosperity
| Recession
~ Depression
| Recovery

Front 49

Factors of Production

Back 49

* Natural Resources
* Labor Resources
* Capital Resources
* Entrepreneurial Resources

Front 50

Decision-Making Process

Back 50

1.Identify the situation.
2.Identify possible courses of action.
3.Determine the pros and cons.
4.Make a decision.
5.Evaluate your decision.