wants
things you wish to have
needs
necessary wants
goods
physically weighed or measured
services
tasks people perform
resource
anything that people can use to make or obtain what they need or want
business
any activity that seeks profit by providing goods or services to others
scarcity
the shortage of a resource
factors of production
the components necessary to produce a society's goods and services
capitol resources
things used to produce goods and services
entrepreneurial resources
the changing wants and needs of people
economics
studies how society chooses to use resources to produce and distribute goods and services
market economy
economic decisions made in marketplace according to the laws of supply and demand
demand
the amount or quantity of goods and services that consumers are willing to buy at
supply
the amount of goods and services that producers will provide at various prices
command economy
planned or managed economy
mixed economy
a combination of a market and command economy
GDP
the total value of the goods produced in a country in a given year
business cycle
rise and fall of economic activity
recovery
a rise in business activity after a recession or depression
ethics
set of morals
business ethics
how a business can conduct itself
OSHA
sets and enforces work related health and safety
code of ethics
set of guidelines for maintaining ethics in the workplace
social responsibility
do what is best for the society
conflict of interest
when a business is tempted to put profits before social welfare
FDA
protects consumers against falsely advertised products
Equal pay act
same wages for men and women
EPA
protects enviorment
small business
and independent owned business that usually has the owner as its manager
sole proprietorship
business owned by only one person
corporation
business owned by many people but treated by law as one person
stock
shares of a company
franchise
agreement to sell a company's products in a designated graphic area
cooperative
organization owned and operated by its members for the purpose of saving money on the purchase of certain goods and services
processors
change raw materials into more finished products
manufacturers
businesses that make finished products out of processed goods
intermediary
business that moves goods from one business to another
wholesaler
distributes goods
retailer
purchases goods from wholesaler and sells them to customer
exchange rate
price at which one currency can buy another currency
balance of trade
difference in a country's imports and exports
protectionism
practice of putting limits on foreign trade to protect businesses at home
tarrif
tax placed on imports
quota
limits placed on the quantities of a product that can be imported
embargo
government decides to stop an import or export of a product
free trade
no limits on trade
interstate commerce
businesses that take part across all states
intrastate commerce
businesses within each state
oligopoly
when a small number of companies control the economy without forming a trust
monopoly
a company that controls the entire industry
trust
agreement
antitrust laws
allow the government to break up monopolies, regulate them, take over them
contract
legal agreement between two or more parties to conduct business
(legal, verbal, handshake)
copyright
creations (plays, photos, music)
patent
sole right to an invention
trademark
brand name
revenue
money government takes in
subsidies
payments the government gives to businesses to make up for their losses
tax incentives
reduction in taxes to businesses
factors of production
natural resources, human resources, capitol resources, entrepreneurial resources
market economy
according to the laws of supply and demand
command economy
central authority makes the key economic decisions
economic indicators
inflation, deflation, GDP, national debt, unemployment rate, Business cycle
business cycle
prosperity, recession, depression, recovery
to be a successful business it must operate
legally, ethically, and humanely
domestic trade
trade within a country
trade barriers
keep certain foreign products out
trade alliances
reduce trade limits between countries
NAFTA
USA, Mexico, and Canada
Government
largest provider of jobs in the U.S.
U.S unemployment rate
6.7%
government regulates these
protecting competition, protecting business agreements, protecting creative properties, and regulating production process
regulating production process
regulating pollutants
advantages of entrepreneurship
risk, showing skill, work from home, profit
disadvantages of entrepreneurship
responsibility, long hours, financial risks
advantages of small business
boss, opportunities large companies cant offer, ease of formation,
disadvantages of small business
effect of change, manager skills needed, inadequate financial planning
parts of a business plan
summary, company description, products and services, marketing plan, management plan, financial plan
different types of businesses
processors, manufacturers, intermediary, wholesaler, retailer
service business
offers services rather than products