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Unit 10 Civics

Civics Unit 10 Vocabulary

TermDefinition
16th amendment Congress may collect income taxes
Bank Privately owned business that takes deposits and makes loans in order to make a profit.
Competition Rivalry between producers of goods/services that create lower prices and better quality
Consumer Buyer of goods and services for personal use
Consumer sovereignty Consumers determine through purchases what good will be produced
Corporation A group that legally acts as a single business entity by selling shares of ownership called stock.
Credit union Non-profit organization owned by members
Deposit Money placed into a private financial institution for safekeeping.
Entrepreneur A person who takes a risk in search of a profit by starting a new business
Financial capital Money, credit and other forms of funding that build wealth for businesses and individuals
Global economy Worldwide exchange of goods and services
Incentive Things that incite and motivate and are used to change economic behavior
Income Money earned by individuals from selling productive resources
Innovation New ideas, products, or methods of production
Interest Fee paid for using money
Liability Responsibility for business ownership
Partnership Business organization shared by 2 or more owners who share the risks, profits, and workload
Private financial institutions Bank, credit unions and other institutions that supply loans and accept deposits
Producer Maker or seller of a product or service
Profit A business’s earnings after all expenses have been paid
Proprietorship A business owned by a single person with full liability for operating the business
Specialization A particular area of expertise in production of a product
Technological innovations New ways of producing goods and services that save time and money while allowing information to flow globally.
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