Business
Individuals or organizations------try to earn a profit by providing products ----------to satisfy people’s needs.
Product
A good or service---------tangible or intangible characters---------------provide satisfaction and benefits.
Profit
The difference between what it costs to make and sell a product and what customer pay for it.
Nonprofit organization
Organizations that may provide goods or services but do not have the fundamental purpose of earning profits.
Stakeholders
Groups that have a stake in the success and outcomes of a business.
Economics
The study--------how resources are distributed for the production of goods and services within a social system.
Natural resources
Land, forest, minerals, water, and other things that are not made by people.
Human resources
The physical and mental abilities that people use to produce goods and services; also called labor.
Financial resources
The funds used to acquire the natural and human resources needed to provide products; also called capital.
Economics system
A description of how a particular society distributes its resources to produce goods and services.
Communism
First described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources.
Socialism
An economics system in which the government owns and operates basic industries but individuals own most business.
Capitalism
An economic system in which individuals own and operate the majority of business that provide goods and services.
Free-market system
Pure capitalism, in which all economic decisions are made without government intervention.
Mixed economies
Economies made up of elements from more than one economic system.
Demand
The number of goods and services that consumers are willing to buy at different prices at a specific time.
Supply
The number of products------goods and services-------that businesses are willing to sell at different prices at a specific time.
Equilibrium price
The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
Competition
The rivalry among businesses for consumers’ dollars.
Pure competition
The market structure that exists when there are many small businesses selling one standardized product.
Monopolistic competition
The market structure that exists when there are fewer business than in a pure competition environment and
