the study of how people figure out ways to get the things they want and need by making choices
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What drives the economy?
needs and wants drive the economy and the production of goods and services.
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What are goods and services?
goods are the physical products while services are tasks that businesses perform for customers.
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What does the Factors of Production mean and what are they?
the resources needed to product goods and services; land, labor, capital, and entrepreneurs.
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what is land?
natural goods
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what is labor?
work people are paid to do to produce goods and services
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what is capitol?
anything used to produce goods and services
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what are entrepreneurs?
people who combine resources to create goods and services
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Traditional Economy
relies on habit, customs, and traditions(indigenous tribes in the Arctic, North America, and eastern Russia)
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Command Economy
government makes all the economic decisions(North Korea, Cuba)
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Market Economy
people make all economic decisions(US, Hong Kong, Singapore, UK, Canada, Germany)
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Mixed Economy
people and government make all economic decisions
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US Economy
uses a mixed economy, has a capitalist economy, and a free enterprise economy
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Voluntary Exchange
people decide what they want to buy and sell, when they want to make the transaction
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Profit Motive
the force that makes people want to improve their well-being
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Private Property Rights
the rights that people have to do what they want with the things they want as long as they don't interfere with the rights of others
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Competition
the struggle among sellers to attract consumers while lowering costs; the struggle among consumers to get the best products for the lowest prices.
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What is the decision making model?
Business decision-making process for businesses and individuals; 1. identify the situation; 2. identify possible courses of action; 3. determine pros and cons; 4. make a decision; 5. evaluate your decision
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ticker
1 to 4 letter identifier
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Private Company
a private company is owned by one or more shareholders who operate the company or are on the board of directors
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Publicly Traded Company
a publicly traded company has gone through an IPO(initial public offering) so that the general public can invest in that company. the general public can buy shares of stock in the company and become partial owners.
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Exchange
place where stocks are traded
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NYSE
New York Stock Exchange
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NASDAQ
stock exchange that trades stock on NASDAQ
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Dividends
a sum of money paid regularly(typically quarterly) by a company to its shareholders out of its profits.
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Initial Public Offering(IPO)
when a company first becomes a publicly traded company
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Flashcard (20)