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MP Econ/Business
Term | Definition |
---|---|
economy | the organized way a nation provides for the needs and wants of its people |
factors of production | also called economic resources. include: land, labor, capital, and entrepreneurship |
infrastructure | the physical development of a country including its roads, ports, sanitation, and utilities |
scarcity | the difference between the wants and needs of a nation. Forces nations to make economic choices |
traditional economy | an economy based on rituals and traditions such as farming, fishing, and forestry. |
market economy | In this economy there is no government regulation. The consumer and companies determine what is produced |
command economy | is a system in which a country's government makes the economic decisions of what, when and how much will be produced and distributed. |
supply | the amount of goods businesses are willing to make and sell |
demand | refers to consumer willingness and ability to buy products |
types of business ownership | there are four types of business ownership including corporation, sole proprietorship, partnership, and franchise |
partnership | legal agreement between two or more people to be jointly responsible for the success or failure of a business |
Corporation | legal entity which is owned by stockholders but is considered to be one person or entity under the law |
Sole Proprietorship | a business owned and operated by one person |
franchise | a type of ownership which requires the owner to use the same marketing and products as the parent company. |