| A | B |
|---|
| entrepreneur | a person who works to create capital through investment |
| Proprietorship | organization with one owner who takes all the risks and all the profits |
| Partnership | organization with two or more owners share the risks and profits |
| Corporation | organization that is authorized by law to act as a legal person regardless of the number of owners |
| limited liability | investors are not financially accountable for more than what they have invested |
| demand | Willingness and ability to buy various quantities of a good or service at various prices |
| supply | Willingness and ability to provide various quantities of a good or service at various prices |
| law of supply | lower price - less produced/higher price - more produced |
| law of demand | lower price - more desire/ higher price - less desire |
| determinant of supply | number of producers, technology, government policies, productivity of resources |
| determinant of demand | substitutes, complements, number of demanders, consumer preference, income |
| equilibrium | supply and demand balance each other |
| surplus | when the supply is greater than demand |
| off-shoring | a factory moves to another nation where production costs are cheaper |
| outsourcing | hire workers in other countries to work while remaining in their own countries |
| trade deficit | When the U.S. imports more than it exports |
| Labor | any form of human effort used in the production of goods and services |
| Capital | human-made resources |
| Natural resources | raw materials that are used in the production of goods and services |
| shortage | when the supply is less than the demand |
