| A | B |
|---|
| business risk | potential for failure |
| competition | the struggle between companies for customers |
| price competition | sales, rebates, and coupons are used to compete for customers |
| non-price competition | quality and service are ways companies compete for customers |
| economy | system by which a nation decides how to use its resources to produce and distribute goods and services |
| free enterprise | people have the right to make economic choices |
| inflation | rising prices |
| infrastructure | a country's physical development, including the state of its roads, ports, sewers, sanitation, and utilities |
| monopoly | sole control over a product or the means of producing it |
| profit | the money left over after all expenses of running a business have been deducted |
| scarcity | condition that exists when people's wants and needs exceed their resources forcing nations to make choices |
| land | resources in their natural state found in and on the earth |
| labor | employees both full and part time working in either the public or private sectors |
| capital | supplies, money, equipment, and buildings used to run a business |
| entrepreneurship | the person who ties all of the resources together |
| utility | the added value of a product in economic terms |
| possession utility | offering alternatives to cash payment such as: debit or credit cards, layaway, checks and installment plans |
| form utility | deals with making or producing things by changing their original form to create a new product or service |
| time utility | having product available at certain time of the year or convenient time of day |
| informaton utility | involves communication with the customer, workshops, labels, packaging, tags, etc. |
| place utility | having a product where customers can buy it |
| command economy | a system in which a country's government makes economic decisions |
| market economy | individuals and businesses own the means for production and businesses compete for customers |
| capitalism | a social and economic philosophy characterized by marketplace competition |
| communism | a social, political economic philosophy in which the government controls the factors of production |
| recession | a period of temporary economic decline. |
| depression | a period of long recession |
| recovery | period of renewed economic growth |
| supply | the amount of goods producers are willing to make and sell |
| demand | refers to consumers' willingness and ability to buy products |
| surplus | when supply exceeds demand when there are more products created than people want |
| shortage | when demand exceed supply - more demand than products available |
| equilibrium | when the amount supplied equals the amount demanded |
| law of supply and demand | the idea that businesses lower prices when the supply exceeds the demand for it |
| standard of living | measurement of the amount of goods and services people have |
