Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

23 Cards in this Set

  • Front
  • Back
consumer sovereignty
the authority of consumers to determine what is produced through their purchases of goods and services
profit and the allocation of resources
when good/service(it) seems to have the potential to generate a profit, entrepreneurial will put together the resources need to produce good/services
flow or resources
competitive firms produce in the manner that minimizes costs and maximizes profits
Adam Smith
"The Wealth of Nations" (1776. the invisible hand reached out and guided the resources to their most-valued use. I.H is the self-intrest that drives firms/consumers what to buy/sell
determination of income
your income determines your ability to pay. income is obtained by selling the services of resources. ownership of resources determines who gets what goods and services in a market system
private sector
households, business, and the international sector
public sector
the government
one or more persons who occupy a unit of housing
household spending. housing, transportation, food, entertainment, and other goods and services. $6.7tril in 2000
business firm
a business organization controlled by a single management. firm: company, enterprise, business
sole proprietorship
a business owned by one person, who receives all the profits and is responsible for all the debts incurred by the business
a business with two or more owners who share the firm's profits and losses. partnership: individuals, estates, or other business
legal entity owned by shareholders whose liability for the firm's losses is limited to the value of the stock they own
multinational business
a firm that owns and operates producing units in foriegn countries
spending on capital goods to be used in producing goods and services
Business Firm types
Sole Proprietorships, partnerships, or corporations
products that a country byrs from other countries
products that a country sells to other countries
trade surplus
the ituation that esists when imports are less than exports
trade deficit
the situation that exists when imports exdeed exports
net exports
exports minus imports equal net exports
financial intermediaries
institutions that accept deposits from savers and make loans to borrowers
circular flow-diagram
a model showing the flow of output and income from one sector of the economy to another