| A | B |
|---|
| Economics | the study of how to meet unlimited wants and needs of a society with its limited resources. |
| Scarcity | a condition in which more goods and services are desired than are available. |
| Communism | countries have a government that is run by one political party and that party controls everything. People are assigned jobs. Students are told what type of schooling they will receive. |
| Prosperity | phase of the business cycle that has high economic growth and low unemployment. |
| Recession | The phase of the business cycle with high unemployment and reduced consumer spending |
| Competition | forces businesses to operate efficiently. |
| Risk | the potential for loss or failure |
| Sole proprietorship | a business owned and operated by one person |
| Private corpotations | corporations that do not offer shares of stock for sale to the general public. |
| Subchapter “S” corporations | taxed like a sole proprietorship and limited to 35 or less shareholders. |
| Utility | the added value or usefulness of a product |
| Supply | the amount of goods producers are willing and able to produce and sell |
| Demand | a consumer’s willingness and ability to buy products |
| Elasticity | the degree to which demand for a product is affected by its price |
| Elastic demand | how changes in the price of a product affect demand for that product |
| Inelastic demand | condition in the market where changes in the price of a product have very little affect on the demand for that product |
| Profit | the money earned from conducting business after all costs and expenses have been paid. |
| Franchise | a business or organization with the right to use an established name and sell trademarked products |
| Partnership | a business owned and operated by two or more people |
| Corporation | a business owned by stockholders |
