| A | B |
|---|
| resources | materials,people,money available |
| consumer | person who buys and uses products |
| supply | the amount of a good or service available to consumers |
| demand | the amount of a good or service that consumers are willing to buy |
| capital goods | buildings/machines needed to produce goods/services |
| division of labor | method of production in which each worker does just one part of a job |
| entreprenuer | a person who starts a business |
| gross income | total amount of money a business makes |
| profit | income after expenses |
| marketing | getting goods to consumers |
| wholesaler | a business that buys goods from a manufacturer adn sell those goods to retailers |
| traditional economy | uses methods passed down from generations |
| command economy | gov. controls teh means of production |
| market economy | individuals own the means of production |
| capitalism | individuals put their money into a business in hopes of making a profit |
| free enterprise | individuals are free to own a business |
| mixed economy | includes both private ownership and gov. guidance |
| sole proprietorship | business that one person owns |
| partnership | business owned by two or more |
| corporation | large business that has many owners |
| incorporate | to receive a charter from the state to form a corporation |
| stock | share of ownership in a company |
| stockholder | person who buys shares in a company |
| common stock | a shar of a corporation that pays is owners a dividen IF the corporation makes a profit |
| dividend | share of profit paid to stockholders of a corporation |
| preferred stock | earns a fixed amount each year the corporation makes a profit |
| bonds | notes promising to repay m oney with interest by a certain date |
| cooperative | organization formed to share business costs or to buy and sell goods at the lowest price possible |
| business cycle | ups and downs of a an economy |
| recession | slow down in economic activity |
| depression | long recession |
| fiscal policy | the way the gov. taxes citizens and spends money |
| monetary policy | the way the gov. regulate the amount of money in ciruculation |
| GDP | total value in dollars of all the final goods/services produced within the nation in a year |
| standard of living | the quality of people's lives determined by the goods/services they have |
| inflation | general rise in prices |
| interest | fee paid for the use of money |
| collateral | property used as a guarantee that a loan will be repaid |
| flexible expenses | expenses that vary from month to month |
| fixed expenses | expenses that stay the same from month to month |
| unit price | the price per ounce or other standard unit of measure |
| investement | the purchase of something tha tis expected to increase in value |
| principle | the original amount of money that was borrowed and on which interest is paid |
| bankruptcy | legal statement that one cannot pay one's debts |
| respossess | to take back property bought on credit b/c of non payment |
| fradulent | making false claims |
