Unit 2:basic Economic Concepts Vocabulary

Front 1

Business Risk

Back 1

Possibility that a company will have lower than anticipated profits, or that it will experience a loss rather than a profit.

Front 2

Competition

Back 2

is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.

Front 3

Economy

Back 3

the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

Front 4

Free Enterprise

Back 4

an economic system in which private business operates in competition and largely free of state control.

Front 5

Inflation

Back 5

a general increase in prices and fall in the purchasing value of money.

Front 6

Infrastructure

Back 6

the basic physical and organizational structures and facilities needed for the operation of a society or enterprise.

Front 7

Monopoly

Back 7

A market structure characterized by a single seller, selling a unique product in the market.

Front 8

Profit

Back 8

Obtain a financial advantage or benefit, especially from an investment.

Front 9

Resource

Back 9

As a service, or other asset used to produce goods and services that meets human needs and wants.

Front 10

Scarcity

Back 10

Is the fundamental economic problem of having seemingly unlimited human wants in a world limited resources.

Front 11

Land

Back 11

Is considered one of the four factors of production and enterprise.

Front 12

Labor

Back 12

The body of persons engaged in such activity, especially those working for wages.

Front 13

Capital

Back 13

Are already-produced durable goods or any non-financial asset that is used in production of goods or services.

Front 14

Entrepreneurship

Back 14

Is the process of identifying and starting a new business venture, sourcing and organizing the required resources, while taking both the risks and rewards associated with the venture.

Front 15

Utility

Back 15

A company that generates, transmits and/ or distributes electricity, water and / or gas from facilities that it owns and/ or operates.

Front 16

Possession Utility

Back 16

Is the value consumers put on purchasing a product and having the freedom to use the product as it was intended or finding a new use for the product.

Front 17

Form Utility

Back 17

The process of increasing that attractiveness of a product to a group of consumer by altering it.

Front 18

Time Utility

Back 18

Utility of a good or service created by its availability at particular time.

Front 19

Information Utility

Back 19

A central source of information for an organization or group.

Front 20

Command Economy

Back 20

An economy in which production, investment, prices, and incomes are determined centrally by a government.

Front 21

Recession

Back 21

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Front 22

Depression

Back 22

A severe and prolonged downturn in economic activity.

Front 23

Surplus

Back 23

Is used to describe many excess assets including income, profits, capital and goods.

Front 24

Equilibrium

Back 24

As the point where supply equals demand for a product.

Front 25

Supply

Back 25

Is plotted as a supply curve showing the relationship of price to the amount of product businesses are willing to sell.

Front 26

Demand

Back 26

An principle that describes a consumer's desire and willingness to pay a price of a good or service.