| A | B |
|---|
| Economic system | the method that a society uses to make and distribute goods and services |
| Goods | something of value that can be seen or felt |
| Services | something of value that cannot be seen or felt |
| Communism | government and economic system in which all property and political power is shared by all the people |
| Socialism | country in which the government owns certain key industries such as transportation and communications |
| Capitalism | the name of the American Economic System |
| Free Enterprise | the right of any individual to enter into a legal business and run it as he sees fit |
| Private Property | the right of any individual to own property and use it within the confines of the law |
| Competition | the effort to outperform other businesses |
| Profit Motive | the effort to make the greatest amount of money possible (incentive) |
| Eminent Domain | the right of the government to take private property for public use. Fair compensation must be given. |
| Supply | the amount of an item available for sale at a particular price |
| Demand | the amount of an item that the people will buy at a particular price |
| Law of Supply and Demand | how supply, demand, and price affect each other |
| Laissez faire | "to let alone" government doesn't make a lot of regulations to restrict the growth of business |
| Surplus | when a company makes more of a product than it can sell |
| Corporation | a business owned by many investors and run by a Board of Directors |
| Holding Company | a business owning enough stock in different companies to control management of those companies of |
| Trust | a group of corporations run by a single Board of Directors. This may create a monopoly. |
| Monopoly | when one company controls the market in a certain industry (one company controls all of a good or service) |
| Stock | shares of a corporation |
| Share | equal parts of into which a corporation is divided and sold to the public |
| Profit | money left over when all of a company's bills have been paid |
| Dividend | profits that are divided among the shareholders of a corporation |
| Capital Improvements | a portion of the profit that is used to improve and increase the value of a company |
| Depression | serious reduction of business activity characterized by decreased production, high unemployment and low stock values. Economic hard times. |
| Boom | a period of economic prosperity |
| Consumer | a person who buys and uses goods and services |
| Producer | one that makes something for sale |
