| A | B |
|---|
| Inflation | an increase in the overall level of prices for goods. |
| Innovation | the act of turning inventions and ideas into marketable products. |
| Input | resources that go into producing a product. |
| Intermediate Goods | materials or resources that will be transformed into another form or used for another product. |
| Labor Productivity | the amount of goods or services produced by a worker in an hour. |
| Limited Liability Company | a type of business that combines limited liability and single taxation without limits on foreign investors. |
| Limited Liability Partnership | a type of business that allows limited partners to take more of a role in running the partnership without the worry of unlimited liability. |
| Limited Partner | a type of owner in a partnership who invests money in the business but who does not contribute to the actual running of the business and whose liability is limited to the amount invested. |
| Market Economy | economic system where economic decisions such as pricing are solely guided by the citizens with minimal interaction by the government. |
| Merger | when two or more companies combine to form a single |
| Mixed Economy | economic system where economic decisions are made by both the citizens and the government. |
| Monetary Policy | the process by which the monetary authority of a country controls the money supply in order to influence the economy. |
| Monopolistic Competition | a combination of a monopoly and perfect competition due to product differentiation. |
| Monopoly | a firm with no competitors within its industry. |
| National Debt | the total amount of money owed by the federal government; calculated by subtracting the total federal deficits from the total surpluses. |
| National Monopoly | a firm that can serve an entire market at a lower cost than two or more firms should. |
| Non-Profit Organizations | a business that is set up as a tax free organization whose profits are returned to the organization to further its mission. |
| Occupational Safety and Hazards Administration | a governmental agency responsible for worker safety. |
| Oligopoly | a type of competitive market with only a small number of firms who control the industry. |
| Output | finished goods and services |
| Partnership | a business that is owned and operated by two or more people who share the work and the profits or losses. |
| Patent Laws | another name for intellectual property rights laws; laws that give ownership rights to inventors for their creations. |
| Perfect Competition | occurs when there are many firms within the same industry that are producing the same |
| Personal Property Rights | the owners legal authority to use a resource or to change others for its use. |
| Private Corporations | business whose shares are not traded publicly on the stock market. |
| Producer Surplus | the extra money businesses get when they can sell their products for more than their lowest acceptable price. |
| Product Differentiation | products in an industry that are similar but slightly different than the competitors’ products; each product offers something that other competitors’ products don’t. |
