| A | B |
|---|
| goods | manufactured items that consumers can buy and own. |
| services | products that are not physical objects. |
| gross domestic product GDP | dollar value of all goods and services produced annually in the United States |
| mass production | rapid production by machine of large numbers of identical objects. |
| profit | difference between the total cost of production and the total revenues received from buyers. |
| marketing | process of making goods and services available to consumers and convincing them to buy a product. |
| mass marketing | process of selling a good or service in which the same product, price, promotion, and distribution is used for all consumers in a particular market. |
| competitive advertising | tries to persuade consumers that a product is better than or different from its competitors |
| Informative advertising | gives consumers information about a product, such as its price, its quality, its history, and its speacial features. |
| Emotional advertising | the use of words or pictures that attempt to appeal to consumer's emotions. Advertisers may appeal to fear, happiness, or sense of well-being, for example. |
| consumer | person who buys or uses goods and services. |
| brand | name given by the maker to a product or range of products. |
| generic product | product that does not have a manufacturer's name or brand |
| debit card | similar to a credit card but deducts money from a checking account |
| charge account | form of credit that stores grant to customers |
| credit cards | forms of credit issued to customers by banks or other lending institutions. |
| profit | money that a business has left after expenses. |
| scarcity | lack of a particular resource. |
| monopoly | what a company has when it is the only one selling a product or providing a service. |
| law of demand | economic principle that buyers will demand and buy more products when prices are low and fewer products when prices are higher. |
| free enterprise | principle that business owners in a free market are allowed to run their businesses in any way they see fit, with little government interference. |
| capitalism | economic system in which the means of production are owned by private citizens. |
| law of supply | economic principle that businesses will produce more products when they can sell them at higher prices and fewer products when prices are low. |
| sole proprietorship | small business owned by one person. |
| partnership | business in which two or more people share the responsibilities, costs, profits, and losses. |
| corporation | type of business that is recognized as a separate legal entity. |
| stock | shares of ownership, each share represents part of the corporation. |
| stockholders | people who buy corporate stocks. |
| dividends | corporate profits paid to stockholders. |
| free market | right to buy and sell goods as you want |
| nonprofit organizations | organizations that provide goods and services without seeking to earn a profit for stockholders. |
| natural resources | items provided by nature without human intervention that can be used to produce goods and provide services. |
| capital | manufactured goods used to make other goods and services. |
| labor | human effort, skills, and abilities used to produce goods and services. |
| entrepreneur | person who organizes, manages, and assumes the risks of a business. |
| market economy | economy in which people are free to obtain goods and services in almost any way they want. |
