| A | B |
|---|
| law of supply | when the price of a product goes up, the supply goes up and vice versa |
| mixed economy | combination of the command and market economic systems |
| free enterprise | individuals are free to own and control business enterprises |
| supply | quantity of a particualr product that producers are able and willing to make available for sale |
| economic system | a way societies use resources to satisfy its people's wants and needs |
| market economy | decision about what to produce, how, and for whom are decided by individuals acting in their own self-interest |
| command economy | decision about what to produce, how, and for whom are decided by the central government |
| corporation | an organizastion that is owned by many people but treated by law as a single entity separate from its owners |
| productivity | measure of efficiency with which goods and services can be produced |
| demand | quanitity of a particular good or service that consumers are willing buy at a given price |
| shareholders | owners of a corporation; purchased shares of stock |
| law of demand | when the price of a product goes down, demand for that product goes up |
| traditional economy | decision about what to produce, how, and for whom are based on traditional customs of the society |
| competition | rivalry between 2 or more business that offer similar goods or services |
| economics | social science that examines how societies use scarce resources to produce and distribute goods/services that satisfy peoples' wants and needs |
| capital | machines and technology used in the production of good and services |
| profit | earning after all costs of production have been paid |
| regressive tax | larger percentage of taxes is paid by low income people |
| proportional tax | same percentage of taxes is taken out of everyone's paycheck |
| revenue | money collected or received by a government for public use |
| tax | required payment to a local, state, or national government |
| progressive tax | larger percentage of taxes is taken from high income people |
| antitrust laws | designed to regulate unfair business practices that reduce competition |
| medicare | a program that pays some of the costs of medical and hospital care for people over 65 years old |
| social security | insurance program that is sponsored by the federal government and pay benefits to qualified people |
| monopoly | situation in which a single company controls the supply of a good or service for which there is no close substitute |
