This contains all the vocab we need to know for ch1, ch3 and ch5.
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| needs | things that are required in order to live
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| wants | things that add comfort and pleasure to life
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| goods | thing that you can see and touch
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| services | activites that are consumed at the same time they are produced
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| economic resources | means through which goods and services are producd
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| factors of production + three types | another word for economic resources, three types: natural, human and capital resources
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| natural resources | raw material supplied by nature
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| human resources | poeple producing goods and services
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| scarcity | not having enough resources to satisfy every need
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| Economic decision-making(steps) | process of choosing which wants among several options will be satisfied(define the problem, identify the choices, evaluate the choices, choose, do your choose, review it)
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| tradeoff | giving up something for something else
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| opportunity cost | cost of the next best thing you did not choose
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| economic question | 1. What goods and services will be produced?
2. How will the goods and services be produced?
3. What needs and wants will be satisfied with the goods and services produced.
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| economic system(4 types) | nation's plan for answering the 3 economic questions(command, market, traditional, mixed)
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| command economy | the resources are owned and controlled by the government
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| market economy | the resources are owned and controlled by the people of the country
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| traditional economy | goods and services are produced the way they have always been done
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| mixed economy | combines elements of the command and market economy
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| capitalism | refers to the private ownership of resources by individuals, rater than by the government
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| private property | means you can own, use or dispose of things of value
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| freedom of choice | means you can make decisions independently and must accept the cosequences of those decisions
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| profit | money left from sales after all cost of opetating a buisness has been paid
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| competition | rivalry amoung buisnesses to sell their goods and services
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| consumer | person who buys and uses good ans services
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| producers | individuals and organizations that determine what products and services will be available for sale
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| demand | quantity of a good or service that consumers are willing and able to buy
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| supply | quantity of a good or service that buisnesses are willing and able to provide
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| competitors | buiness offering very similar products to same customers
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| Law of Demand | as price increases, quantity demand decreases
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| Law of Supply | as prices increases, quantity increases
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| Market Price | point where supply and demand are equal
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| Increase in supply or demand | shift to right
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| decrease in supply or demand | shift to left
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| changes in demand | 1. consumer's tastes
2. Income changes
3. Availability of subsitutes
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| changes in supply | 1. Weather
2. Cost of Production
3. More efficient ways to produce goods and services
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| Domestic business | making, buying, and selling of goods and services within a country
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| International Business | refers to business activities needed for creating, shipping, and selling goods and services across national borders (also known as foreign or world trade)
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| Absolute advantage | exists when a country can produce a good or service at a lower cost than other countries
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| Comparative advantage | situation in which a country specializes in the production of a good or service at which it is relatively more efficient
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| Imports | items bought from other countries
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| exports | goods and services sold to other countries
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| balance of trade | difference between a country's total exports and total imports
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| trade surplus | when a country exports(sells) more than it imports(buys)
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| trade deficit | when a country imports more than it exports
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| balance of payments | difference between the amount of money that comes into a country and the amount that goes out
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| positive(favorable) balance of payments | occurs when a country receives more money than it pays out
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| negative (unfavorable) balance of payments | result of a country sending more money than it brings in
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| exchange rate | value of a currency in one country compared with the value in another
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| factors affecting currency values | balance of payments, economic conditions, and political stability
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| 4 factors for international business environment | Geography, cultural influences, economic development and political and legal concerns
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| infrastructure | refers to a nation's transportation, communication, and utility systems
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| trade barriers | restrictions to free trade
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| formal trade barriers | government trade barriers
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| informal trade barriers | cultural, traditions and religous trade barriers
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| quota | sets a limit on the quantity of a product that may be imported or exported within a given period
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| tariff | tax that a government places on certain imported products
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| embargo | when government stops the export or import of a product completely
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| free-trade zone | selected area where products can be imported duty-free
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| free-trade agreement | member countries agree to remove duties and trade barriers on products traded among them
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| common market | members do away with duties and other trade barriers (also known as economic market)
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| multinational company(MNC) | organization that does business in several countries
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| global strategy | using the same product and marketing strategy worldwide
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| multinational strategy | treats each country market differently
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| Licensing | selling the right to use some intangible property for a fee or royalty
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| franchise | the right to use a company name or business process in a specific way
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| joint venture | afreement between two or more companies to share a buisness project
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| world Trade Organization(WTO) | promotes trade around the world
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| International Monetary Fund(IMF) | helps to promote conomic cooperation
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| World bank | provide economic aid
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| contingent worker | one who has no explicit or implicit contract for long term employment
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| Business Activities | Generating Ideas, Raising Capital, Employing and training Personnel, Buying Goods and Services, Marketing Goods and Services, and Maintaining Business records
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| Producers | create the product and services used by individuals and other businesses
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| intermediaries | businesses involved in selling goods and services of producers to consumer and other businesses
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| service business | carrier out activities that are consumed by its customers
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| proprietorship | business owned and run bu just one person
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| partnership | business owned and controlled bu 2 or more people
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| corporation | separate legal entity formed by documents filed with your state
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| partnership agreement | written agreement among all owners
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| articles of incorporation | written legal document that defines ownership and operating procedures and conditions for the business
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| limited liability partnership | identifies some investors who cannot lose more than the amount of their investment, but are not allowed to participate in the day-to-day activities
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| S-corporation | offers the limited liability of a corporation
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| limited liability company | provides liability protection for owners
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| nonprofit organization | group of people who work together to benefit the community
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| franchise | written contract granting permission to operate a business to sell products and services in a set way
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| mission statement | short, specific written statement of the reason a business exists and what is wants to achieve
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| policies | guidelines used in making consistent decisions
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| procedures | descriptions of the way work is to be done
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| organization chart | shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications
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| functional organization structure | work is arranged within main business functions such as production, operations, marketing, and human resources
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| matrix organizational structure | work is structured around specific projects, products, or customer groups
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Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
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To hide a column, click on the column name.
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You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
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