Flashcards in Exam 1 Deck (12)
What is the meaning of Business?
any activity that seeks to provide goods and or services to others while operating at a profit
What is an entrepreneur?
a person who risks time and money to start and manage a business
What are the factors of production?
land, labor, capital, entrepreneurship, knowledge
What is the meaning of economics?
the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
what is capitalism?
all or most of the factors of production and distribution - such as land, factories, railroads, and stores - are owned by individuals
What is socialism?
an economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people.
What is a recession?
2 consecutive quarters with downturn in our GDP/GNP
What is a depression?
a long term recession
What is a trade deficit?
when the value of a country's exports is less than its imports
What is a sole proprietorship?
owned and managed by one person
What is a partnership?
Two or more people agree to be co owners