Economics Study Guide Terms

A set of flashcards covering essential economics terms and their definitions for study purposes.

Sole Proprietorship

A type of business owned and operated by a single individual, who has unlimited liability.

Partnership

A business structure where two or more individuals manage and operate a business and share its profits.

Corporation

A legal entity that is separate from its owners, providing limited liability to its shareholders.

Franchise

A business arrangement where a franchisor grants the rights to use their brand and business model to a franchisee.

Non-Profit

An organization that operates for educational, charitable, or social purposes, and does not distribute profits to owners.

For Profit

A business structured to generate profit for its owners.

Merchandising

The sale of goods to consumers, often involving buying products for resale.

Service

A type of business that provides services rather than tangible goods.

Production/Manufacturing

The process of creating, producing, or assembling goods from raw materials.

Distribution

The process of delivering products from the manufacturer to the consumer, involving supply chain and economic interdependence.

Small Business

A business that is privately owned and has a relatively small number of employees or relatively low volume of sales.

Medium Business

A business that falls in between small and large in terms of number of employees and revenue.

Large Business

A business that typically has a large number of employees and high volume of sales.

Customer

An individual who purchases goods or services from a business.

Consumer

An individual who uses or consumes the goods or services produced by a business.

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Consumer Influence

The impact that consumer preferences and behavior have on the production and marketing of goods.

Market/Marketplace

A forum or platform where buyers and sellers interact to exchange goods and services.

Factors of Production

Resources used in the production of goods and services, including natural resources, human resources, capital resources, and entrepreneurship.

Traditional Economic System

An economic system that relies on customs and traditions to make economic decisions.

Command Economic System

An economic system where the government makes all economic decisions and controls all resources.

Market Economy

An economic system where supply and demand drive the production and prices of goods and services.

Mixed Economic System

An economic system that incorporates elements of both market and command economies.

Law of Supply

The principle that an increase in the price of a good will increase the quantity supplied.

Law of Demand

The principle that an increase in the price of a good will decrease the quantity demanded.

Supply, Demand and Price

The relationship between the supply of a product, consumer demand, and its pricing.

Market Structures

The organizational and competitive characteristics of a market, such as perfect competition or monopoly.