Essay about Final Study Guide Economic

Essay about Final Study Guide Economic Essay about Final Study Guide Economic Annie Nguyen Per.5 FINAL STUDY GUIDE Traditional economy: Economic system in which the allocation of scarce resources and other economic activities are based on ritual, habit, custom. Corporation: Form of business organization recognized by law as separate legal entity. General partnership: Form of partnership where all partners are equally responsible for management, debt. Economic goals: Freedom, efficiency, equity, security, employment, stability, grown, future goals. Substitutes: Competing products that can be used in place of one another. Demand schedule: A table that lists how much of a product consumer will buy at all possible prices. Markets: Meeting place or mechanism allowing buyers and sellers of an economic product to come together may be local, regional, national, or global. Capital market: Market in which financial capital is loaned and/or borrowed for more than 1 year. Primary market: Market in which only the original issuer can sell or repurchase a financial asset. Secondary market: Market in which financial assets can be sold to someone other than the original issuer. Trade-off: alternative that is available whenever a choice is to be made. Economic interdependence: Mutual dependency of one person’s, firm’s, or region’s economic activities on another’s. Proprietorships: business owned and run by a single person who has the rights to all profits and unlimited liability for all debts of the firm. Surplus: Situation where quantity supplied is greater than quantity demanded at a given price. Price ceiling: Highest legal price that can be charged for a product. Cooperative: Nonprofit association performing some kind of economic activity for the benefit of its members. Command economy: Economic system with a central authority that makes the major economic decisions. Market economy: Economic system in which supply, demand, and the price system help people make economic decisions and allocate resources. Mixed economy: Economic system that has some combination of traditional command, and market economics. Deficiency payments: Cash payment making up the difference between the market price and the target price. Total costs: The sum of fixed costs and variable costs. Fixed costs: Costs that remain the same regardless of level of production or services offered. Entrepreneur: Risk-taking individual in search of profits. E-commerce: Electronic business conducted over the Internet. Call option: Futures contract giving a buyer the right to cancel a contract to buy something. Put option: Futures contract giving a buyer the right to cancel a contract to sell something. Good: Tangible economic product that is useful, relatively scare, and transferable to others. Consumer good: Good intended for final use by consumers rather than businesses. Durable good: A good that lasts for at least 3 years when used regularly. Nondurable good: A good that wears out or lasts for fewer than 3 years when used regularly Capital good: Tools, equipment, and factories used in the production of goods and services. Voluntary exchange: Act of buyers and sellers freely and willingly engaging in market transactions. Price-fixing: Agreement, usually illegal, by firms to charge the same price for a product. Oligopoly: Market structure in which a few large sellers dominate the industry. Trust: Illegal combination of corporations or companies organized to hinder competition. Diminishing returns: Stage where output increases at a decreasing rate as more units of variable input are added. Change in supply: Situation where different amounts are offered for sale at all possible prices in the market; shift of the supply curve. Rationing: System of allocation goods and services without prices. Monopoly: Market structure with a single seller of a particular product. Limited partnership: Form of partnership where one or more partners are not active in the daily running of the business and have limited responsibility