| A | B |
|---|
| standard of living | Americans enjoy a high one |
| scarcity | problem of limited resources |
| common stock | shares in a corp. that don't earn fixed dividend, but allow "voting voice" in co. |
| free competition | system in which business owners compete among themselves for customers |
| law of supply | economic rule that states businesses will provide more products when they can sell them at higher prices & will provide fewer when sold at lower prices. |
| profit motive | desire to make money from a business or investment. |
| stock | share of ownership in a corp. |
| merger | combination of 2 or more companies into one co. |
| monopoly | situation in which one co. controls all the production of good or service. |
| public utility | legal monopolies that provide public services. |
| mixed economy | economic system that combines elements of free & command economies. |
| copyright | exclusive right, granted by law, to publish or sell a written, musical or art work for certain number of years. |
| capital | money invested in business. |
| dividend | profit paid to corporate stockholders. |
| nonprofit organization | a business org. that provides goods & servces without seeking a profit. |
| factors of production | 4 resources or means of production: land, labor, capital, & management. |
| labor | human effort used to produce goods & services. |
| entrepreneur | business owner |
| productivity | amount of work produced by a worker in one hour. |
| trust | form of bus. org. in which several co.s create a board or trustees that ensures the co.s no longer compete with each other. |
| rent | payment made for the use of land or other property belonging to another person. |
| invest | to put money into a busines in the hope of making a profit. |
| gross income | total amount of money a co. receives from sales. |
| patent | exclusive right given to a person fo make & sell an invention for a certain number of years. |
| sole proprietorship | business org. owned by one person. |
| land | factor of production that includes location & natural resources. |
| net income | money left over after a business's costs have been paid. |
| command economy | economic system in which the gov't completely controls a nation's economy. |
| bond | certificates of debt issued by corp.s to persons from whom they have borrowed money. |
| capitalism | economic system based on private ownership of the means of production. |
