Econ

Sole Proprietorship

A business owned and controlled by one person, known as the oldest and most common type of business organization.

Partnership

A business arrangement where two or more people share responsibility and profits, with two main types: General and Limited Partnerships.

Corporation

A legal entity that is distinct from its owners, allowing it to own property, hire employees, and be liable like an individual.

Franchise

An enterprise that uses an original company’s name to sell goods and services under certain operational guidelines.

Cooperative

A business owned collectively by its members, aimed at providing mutual benefits.

Nonprofit Organization

A type of organization that provides goods and services with specific social goals, typically in areas like education and healthcare.

Gross Domestic Product (GDP)

The total dollar value of all final goods and services produced within a country during one calendar year.

Nominal GDP

GDP expressed in the current prices of the period being measured, without adjustments for inflation.

Real GDP

GDP that has been adjusted for price changes, providing a more accurate measure of an economy's performance.

Inflation

An increase in the average price level of all products in an economy.

Deflation

A decrease in the average price level of all goods and services in an economy.

Law of Demand

An economic principle stating that as the price of a good increases, the quantity demanded decreases, and vice versa.

Elastic Demand

Demand that significantly changes when prices change; commonly for non-essential goods.

Inelastic Demand

Demand that shows little change in quantity demanded even when prices fluctuate; typically for necessities.

Supply

The quantity of goods and services that producers are willing and able to offer at various possible prices.

Law of Supply

An economic principle that states higher prices lead to an increase in quantity supplied, while lower prices lead to a decrease.

Market Equilibrium

A situation in which the quantity supplied equals the quantity demanded at a particular price.

Perfect Competition

An ideal market structure characterized by many buyers and sellers, identical products, and ease of entry and exit.

Monopolistic Competition

A market structure where many sellers offer products that are similar but not identical, allowing for some price control.

Oligopoly

A market structure dominated by a small number of large firms, which control most of the production and pricing.

Economic Efficiency

The optimal use of resources to produce the greatest amount of output with the least waste.

Opportunity Cost

The value of the next best alternative that is forgone when making a decision.

Mixed Economy

An economic system that combines characteristics of traditional, command, and market economies.