Business 110: Chapter 2

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Business 110: Chapter 2
2014-01-13 17:11:08
business business110 chapter2 chapter
Business 110
Understanding economics and how it affects business.
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  1. Economics
    The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing individuals and groups.
  2. Microeconomics
    The part of economics study that looks at the behavior of people and organizations in particular markets.
  3. Macroeconomics
    The part of economics study that looks at the operation of a nation's economy as a whole.
  4. Resource development
    The study of how to increase resources and to create the conditions that will make better use of these resources.
  5. Invisible hand
    The process that turns self-directed gain into social and economic benefits for all.

    (coined by Adam Smith)
  6. Capitalism
    An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.
  7. Supply
    The quantity of products that manufactures or owners are willing to sell at different prices at a specific time.
  8. Demand
    the quantity of products that people are willing to buy at different prices at a specific time.
  9. Market Price
    The price determined by supply and demand.
  10. Perfect Competition