| A | B |
|---|
| Economics | Study of how people or nations use limited resources to meet unlimited needs |
| Supply | The amount of a product a seller is willing to sell at a certain price |
| Demand | The amount of a product a consumer is willing to buy at a certain price |
| allocate | To use for a specific purpose |
| Land, labor, resources, managementn | 4 elements necessary for the production of any good or service |
| Marx | Spokesperson of Communism |
| Smith | Father of Capitalism |
| Communism | An economic and political system where society as a whole controls the means of production and people get what they need. |
| Capitalism | An economic system where people put their money into companies in the hopes of making a profit. One characteristic of a capitalist society is competition |
| Sole proprietorship | Business owned by one person |
| Partnership | Business in which 2 or more people pooltheir skills and resources to run a business and also share the risk |
| Corporation | Large company with many stockholders sharing the risk |
| stock | A share (part) of a corporation |
| limited liability | The concept that in a corporation, your potential loss is limited to only the amount of money you invested. (You can only lose what you put in the company in the first place). |
| Cottage industry | Production method where the entire product is made by one person from start to finish |
| assembly line | Method of production where a person is in charge of a specialized task that contributes to making part of a product |
| traditional economy | Economic decisions are made by the family, tribe, or small social unit by tradition passed down from generation to generation |
| Command Economy | The government owns the means of production and decides what will be produced |
| Market economy | An economic system where economic decisions are made according to the laws of supply and demand. Much competition exists in a market economy |
| Capital | The money and goods used to produce any good or service |
