| A | B |
|---|
| Consumer | A person who buys or uses products |
| Producer | A person or company that makes or provides a good or service |
| Law of Demand | Buyers want when they can buy them at lower prices |
| Law of Suppy | Business provides more products when they can sell them at a higher price |
| Interest | Payment for the use of loaned (borrowed) money |
| Market Economy | Economic system where individuals are free to compete, earn a living, own property, and make a profit |
| Competition | Economic rivalry between businesses that sell similar products |
| Capitalism | Economic system based on Private Ownership |
| Communism | Economic system where the means of production are owned by the government |
| Circular Flow | Model that displays how consumers, business, and gov't interact within the U.S. economy |
| Labor | Human effort (work) used to make goods and services |
| Goods | Products that are manufactured and consumers can purchase |
| Services | Work that does not produce an actual product, but consumers can buy |
| Capital | Money invested in a business; also property & equipment |
| Scarcity | The problem of limited resources |
| Dividends | Profit paid (shared) to corporate stockholders |
| Opportunity Cost | Value of an alternative that a company has chosen NOT to produce in order to make another product |
| Stock | A share in the ownership in a corporation |
| Entrepreneur | A business owner who assumes the risk of starting a business |
| Profit | Income a business has left over after paying its expenses |
| Monopoly | A company that controls all of the production of a particular good or service |
| Stockholders | People who own stock in a corporation |
| Sole Proprietorship | A business owned by one person |
| Partnership | Busines ownd by two or more people |
| Corporation | Business chartered by the state gov't and given power to conduct business, sell stock, and is protected by state laws |
