| A | B |
|---|
| market economy | econoomic systemin which individuals are free to compete, earn a living,earn a profit, & to own property |
| free market | economic system in whichbuyers & sellers are free to exchange goods and services as they choose |
| free competition | system in which business owners compete among themselves forcustomers |
| profit motive | desire to make money from a business or investment |
| invest | to put money into a business ot valuable articles in hopes of making a profit |
| copyright | exclusive right guaranteed by law, to publish or sell a written, musical, or artwork for a certain number of years |
| patent | exclusive right given to a person to make or sell an invention for a certain number of years |
| scarcity | problem of limited resources |
| law of supply | economic rule that states that businesses will provide more products when they can sell them at higher prices and fewer products when they must sell at lower prices |
| law of demand | economic rule that states that buyers will demand more products when they can buy them at lower prices and fewer products when they must buy them at higher prices |
| capital | money invested in business; also, property and equipment used to produce goods or sesrvices |
| capitalism | economic system based on private ownership of the means of production |
| free enterprise system | economic system in which people are free to operate their businesses as they see fit, with little gov't interference |
| monopolies | companies that control all production of a good or service |
| merger | combination of two or more companies into one company |
| trust | a form of business organization in which several companies create a board of trustees that insures the companies no longer compete with one and other |
| economies of scale | a situation in which goods can be produced more efficiently and cheaply by larger companies |
| conglomerant | large company formed by the merger of businesses that produce, supply, or sell a number of unrelated goods and services |
| public utilities | legal monopolies that provide essential services to the public |
| command economy | economic system in which the government controls the country's economy |
| mixed economy | economic system that combines elements of free and command economies |
| traditional economy | an economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next |
| rent | a payment for the use of land or other property belonging to another person |
| labor | human effort used to make goods and services |
| productivity | amount of work produced by a worker in an hour |
| entrepreneurs | business owners |
| gross income | total amount of money a company receives fromthe sale of its goods and services |
| net income | money a company has left over after all its costs has been paid |
