| A | B |
|---|
| free enterprise | you can start and operate your own business with limited government involvement |
| monopoly | there is no competition because one firm controls the market for a given product |
| demand | consumer willingness and ability to buy products |
| equilibrium | when the amount of product supplied is equal to the amount of product demanded |
| competition | struggle between companies for customers |
| profit | money earned from business after all costs and expenses have been paid |
| licensing agreement | protects an originator's name and products |
| supply | amount of goods producers are willing to make and sell |
| nonprice competition | focuses on factors that are not related to price |
| risk | potential for loss or failure |
| price competition | focuses on the sale price of a product |
| entrepreneurship | skills of people willing to risk their time and money to run a business |
| capital | money needed to start and operate a business |
| consumer price index | measure in change in price over time of some 400 products used by the average household |
| factors of production | technical term economists use for resources |
| gross domestic product | a measure of the goods and services produced using labor and property in the U.S. |
| inflation | refers to rising prices |
| infrastructure | physical development of a country such as roads, utilities and ports |
| capitalism | economic system characterized by private ownership and marketplace competition |
| productivity | meaure of output divided by input of worker hours |
| gross national product | measures goods and services produced by labor and property supplied by U.S. residents, whether here or abroad |
| privatization | process of selling government-owned businesses to private individuals |
