| A | B |
|---|
| business | an organization that distributes a good or service for profit |
| profit | the difference between earned income and costs |
| production | making a product or providing a service |
| Manufacturing Firm | a business that produces tangible goods |
| Service Firm | a business that provides specialized assistance to customers |
| Finance | an activity that deals with money matters related to operating a business |
| Commercial Business | a business that provides goods and services to individuals (consumers) |
| Services | intangible products that use mostly labor to meet customer needs |
| efficiency | producing goods and services quickly and at a low cost |
| output | the quantity produced within a given time |
| productivity | producing the largest quantity of someing in the least amount of time |
| entrepreneur | someone who starts, manages, and owns their own business |
| business ethics | principles and rules that define right and wrong conduct for a business |
| economics | study of producing goods and services to satisfy wants |
| Utility | the ability of a good or service to satisfy a want |
| producer | anyone who creates a good or service |
| factors of production | the four basic resources used in creating goods and services |
| Natural Resources | Raw materials provided by the land |
| Labor | human effort used to produce goods or services |
| Capital Goods | buildings, tools, machines, etc. used in making goods or services |
| Entrepreneurship | the 4th factor of production, which brings together all others |
| economic system | how a country decides what, how, and for whom to produce |
| Market economy | individuals (consumers) buying determines what, how, and for whom to produce |
| Command economy | a central autority determines what, how, and for whom to produce |
| Mixed economy | system combines a market and command economy |
| Capitalism | economic-political system where people have the right to make thier own business decisions |
| Free Enterprise | same as capitalism |
| Socialism | economic-political system - government and people share factors of production |
| Communism | economic-political system where government makes all business decisions |
| Private Property | items of value that individuals have the right to own, use and sell |
| Demand | the number of products that will be bought at a given time and price |
| Supply | the number of products offered for sale at a given time and price |
| Market Price | the price where supply and demand are equal |
| competition | the rivalry among sellers for consumers dollars |
| Monopoly | the absence of competition |
| Inflation | rise in prices |
| business cycles | a pattern of ups and downs in business |
