principles of business unit 1 flashcards

artificial intelligence (AI)

computer systems that can perform tasks that usually require human intelligence, such as learning, problem solving, and decision making

command economy

an economy in which the government controls all economic decisions, including what goods and services to produce, how to produce them, and how to distribute them among the people

demand

the amount of a good or service that people (consumers) are willing and able to buy at various prices

digital literacy

the ability to live, learn, and work in a world where communication and access to information are increasingly done through digital technologies like the internet, social media, and mobile devices

economic equilibrium

occurs when the quantity of a product (a good or service) that producers are willing to supply matches the quantity consumers demand at a specific price

emerging economy

a country experiencing rapid economic growth and industrialization but that still has lower levels of income and development compared to more advanced economies such as the United States, Japan, or Germany

free enterprise system

an economy based on private ownership, free trade, and limited government involvement (also called a free market system, private enterprise system, or capitalism)

law of demand

states that as the price of a product increases, consumers will demand less of it because it becomes more unaffordable

law of supply

states that as the price of a product increases, producers (or businesses) are willing to make more of it, and as the price decreases, producers are less willing to make the product

market economy

an economy in which decisions about what to produce, how to produce it, and for whom are determined by supply and demand, with limited government involvement

mixed economy

combines traditional, command, and market economies, with some decisions made by the government and others by private businesses and individuals

scarcity

the limited nature of resources compared to the unlimited wants and needs of humans

supply

the amount of a good or service that producers are willing and able to offer for sale at various prices

traditional economy

an economy in which decisions about what to produce, how to produce it, and for whom are based on customs, traditions, and beliefs