Chapter 7-8
Help!
|
|
||||
|---|---|---|---|---|---|
| demand | the amount of a good or service that consumers are able and willing to buy at various possible prices during a specified time period
🗑
|
||||
| supply | the amount of a good or service that producers are able and willing to sell at various prices during a specified time period
🗑
|
||||
| market | the process of freely exchanging goods and services between buyers and sellers
🗑
|
||||
| voluntary exchange | a transaction in which a buyer and a seller exercise their economic freedom by working out their own terms of exchange
🗑
|
||||
| law of demand | economic rule stating that the quantity demanded and price move in opposite directions
🗑
|
||||
| quantity demanded | the amount of a good or service that a consumer is willing and able to purchase at a specific price
🗑
|
||||
| real income effect | economic rule stating that individuals cannot keep buying the same quantity of a product if its price rises while their income stays the same
🗑
|
||||
| substitution effect | economic rule stating that if two items satisfy the same need and the price of one rises, people will buy more of the other
🗑
|
||||
| utility | the ability of any good or service to satisfy consumer wants
🗑
|
||||
| marginal utility | an additional amount of satisfaction
🗑
|
||||
| law of diminishing marginal utility | rule stating that the additional satisfaction a consumer gets from purchasing one more unit of a product will lessen with each additional unit purchased
🗑
|
||||
| demand schedule | table showing quantities demanded at different possible prices
🗑
|
||||
| demand curve | downward-sloping line that shows in graph form the quantities demanded at each possible price
🗑
|
||||
| elasticity | economic concept dealing with consumers’ responsiveness to an increase or decrease in the price of a product
🗑
|
||||
| price elasticity of demand | economic concept that deals with how much demand varies according to changes in price
🗑
|
||||
| elastic demand | situation in which a given rise or fall in a product’s price greatly affects the amount that people are willing to buy
🗑
|
||||
| inelastic demand | situation in which a product’s price change has little impact on the quantity demanded by consumers
🗑
|
||||
| law of supply | economic rule stating that price and quantity supplied move in the same direction
🗑
|
||||
| quantity supplied | the amount of a good or service that a producer is willing and able to supply at a specific price
🗑
|
||||
| supply schedule | table showing quantities supplied at different possible prices
🗑
|
||||
| supply curve | upward-sloping line that shows in graph form the quantities supplied at each possible price
🗑
|
||||
| technology | the use of science to develop new products and new methods for producing and distributing goods and services
🗑
|
||||
| law of diminishing returns | economic rule that says as more units of a factor of production are added to other factors of production, after some point total output continues to increase but at a diminishing rate
🗑
|
||||
| equilibrium price | the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy
🗑
|
||||
| shortage | situation in which the quantity demanded is greater than the quantity supplied at the current price
🗑
|
||||
| surplus | situation in which quantity supplied is greater than quantity demanded at the current price
🗑
|
||||
| price ceiling | a legal maximum price that may be charged for a particular good or service
🗑
|
||||
| rationing | the distribution of goods and services based on something other than price
🗑
|
||||
| black market | “underground” or illegal market in which goods are traded at prices above their legal maximum prices or in which illegal goods are sold
🗑
|
||||
| price floor | a legal minimum price below which a good or service may not be sold
🗑
|
||||
| entrepreneur | person who organizes, manages, and assumes the risks of a business in order to gain profits
🗑
|
||||
| startup | a beginning business enterprise
🗑
|
||||
| small-business incubator | private- or government-funded agency that assists new businesses by providing advice or low-rent buildings and supplies
🗑
|
||||
| inventory | extra supply of the items used in a business, such as raw materials or goods for sale
🗑
|
||||
| receipts | income received from the sale of goods and/or services; also, slips of paper documenting a purchase
🗑
|
||||
| sole proprietorship | business owned and operated by one person
🗑
|
||||
| proprietor | owner of a business
🗑
|
||||
| unlimited liability | requirement that an owner is personally and fully responsible for all losses and debts of a business
🗑
|
||||
| assets | all items to which a business or household holds legal claim
🗑
|
||||
| partnership | business that two or more individuals own and operate
🗑
|
||||
| limited partnership | special form of partnership in which one or more partners have limited liability but no voice in management
🗑
|
||||
| limited liability company | type of business enterprise that protects members against losing all of their personal wealth; members are taxed as if they were in a partnership
🗑
|
||||
| joint venture | partnership set up for a specific purpose for a short period of time
🗑
|
||||
| corporation | type of business organization owned by many people but treated by law as though it were a person; it can own property, pay taxes, make contracts, and so on
🗑
|
||||
| stock | share of ownership in a corporation that entitles the buyer to a certain part of the future profits and assets of the corporation
🗑
|
||||
| limited liability | requirement in which an owner’s responsibility for a company’s debts is limited to the size of the owner’s investment in the firm
🗑
|
||||
| articles of incorporation | document listing basic information about a corporation that is filed with the state where the corporation will be headquartered
🗑
|
||||
| corporate charter | license to operate granted to a corporation by the state where it is established
🗑
|
||||
| common stock | shares of ownership in a corporation that give stockholders voting rights and a portion of future profits (after holders of preferred stock are paid)
🗑
|
||||
| dividend | portion of a corporation’s profits paid to its stockholders
🗑
|
||||
| preferred stock | shares of ownership in a corporation that give stockholders a portion of future profits (before any profits go to holders of common stock), but no voting rights
🗑
|
||||
| bylaws | a set of rules describing how stock will be sold and dividends paid
🗑
|
||||
| franchise | contract in which one business (the franchisor) sells to another business (the franchisee) the right to use the franchisor’s name and sell its products
🗑
|
||||
| Fiscal Policy | federal government’s use of taxation
and spending policies to affect overall business activity
🗑
|
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.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
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.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
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.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
Mr. Herbst
Popular Economics sets