Market Economy
an economic system in which individuals are free to compete, to earn a living, to earn a profit, and to own property
Free Market
an economic system in which buyers and sellers are free to exchange goods and services as they choose
Profit
the income a buisness has left after paying its expenses
Scarcity
the problem of limited resources
Law Of Supply
an economic rule that states that buisness will provide more products when they can sell them at higher prices and fewer products when they must sell them at lower prices
Law Of Demand
an 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
Free Enterprise
principle that buisness owners in a free market are allowed to run their buisnesses in any way they see fit, with little government interference
Capitalism
an economic system based on private ownership of the means of production
Monopoly
a company that controls all production of a good or service
Sole Proprietorship
buisnesses organizations owned by one person
Partnership
a buisness organization in which two or more persons share responsiblities , costs, profits, and losses
Corporation
a buisness organization chatered by s state government and given power to conduct buisness, sell stock, and recieve protection of state laws
Stock
a share of ownership in a corporation
Stockholders
people who own corporate stock
Dividens
profits paid to corporate stockholders
Nonprofit Organizations
buisness organizations that provide goods and services without seeking to earn a profit
Natural Resources
any natural materials that are used by humans, such as water, petroleum, minerals, forests, and animals
Capital
money invested in buisness; also property, and equipment used to produce goods or services
Labor
human effort used to make goods and srervices
Entreprenur
a buisness owner