Exploring the World of Business & Economics 1

Flashcards covering key concepts outlined in the lecture on business and economics.

Business

An organized effort to produce and sell/deliver a good or service for a profit.

Resources

The inputs that businesses must organize, including human, material, financial, and informational resources.

Profit

The money remaining after all expenses have been deducted from total revenue.

GDP

Gross Domestic Product; total dollar value of all goods and services produced within a country in a year.

Economics

The study of how wealth is created and distributed.

Macroeconomics

The study of national and global economics, including the effects of taxes and government spending.

Microeconomics

The study of individual and business decisions and their effects on market dynamics.

Capitalism

An economic system where individuals own and operate the majority of businesses to provide goods and services.

Invisible Hand

A metaphor introduced by Adam Smith for the self-regulating nature of the marketplace.

Laissez-Faire

An economic philosophy advocating minimal government intervention in the economy.

Competition

The rivalry among sellers to attract customers while lowering costs.

Command Economy

An economic system where the government decides what goods and services will be produced.

Socialism

An economic system where key industries are owned and controlled by the government.

Communism

A political and economic ideology advocating for a classless society where all economic resources are communally owned.

Perfect Competition

A market structure with many buyers and sellers, where no single entity can influence prices.

Monopolistic Competition

A market structure with many sellers selling similar products, differentiated by characteristics or services.

Oligopoly

A market structure characterized by a few large sellers dominating the market.

Monopoly

A market structure where a single seller controls the entire market for a good or service.

Supply

The total amount of a good or service that producers are willing to sell at various prices.

Demand

The quantity of a good or service that consumers are willing to purchase at different prices.

Market Price

The equilibrium price where the quantity demanded equals the quantity supplied.