Unit 12 Vocab redo

Definition of 'Market':

• A system where buyers and sellers interact to exchange goods and services

• A physical location only

• A method to store products

• An abstract concept without any real transactions

Free Enterprise is

• It is a system in which private individuals and businesses operate with minimal government interference.

• It is a government-controlled economy.

• It is only a theoretical concept without real-world application.

• It is an economic system identical to socialism.

Define 'Private Property'.

• Property owned by the state.

• Property owned privately by individuals.

• Property that is publicly shared.

• Property used collectively.

What does 'Competition' mean?

• Rivalry among sellers that keeps prices low and quality high for consumers

• The process of cooperation between parties to achieve a mutual result.

• A state of inactivity and rest.

• A method of self-reflection and meditation.

Consumer Sovereignty means

• When the wants and needs of the people dictate what products are made

• Producers control what is manufactured.

• The government sets production guidelines.

• Investors dictate market trends.

Demand is defined as

• It is the willingness and ability to purchase a product or service

• It is the actual amount of goods produced.

• It is the governmental regulation on prices.

• It is the surplus inventory of a product.

Define 'Supply'

• The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time

• The process of consuming goods and services.

• The measure of consumer demand.

• The economic principle governing the price of goods.

Equilibrium Price is

• Equilibrium Price is the point where supply and demand meet; the market is in perfect balance

• Equilibrium Price is the lowest price at which quantity supplied does not exceed demand.

• Equilibrium Price is the highest price consumers are willing to pay.

• Equilibrium Price is the average of the supply and demand curves.

Proprietorship is

• A business owned by multiple partners.

• A business owned and run by a single individual.

• A corporation owned by shareholders.

• A business that is jointly owned by the government.

Partnership is

• Between two or more individuals or groups that share profits and losses of a business venture.

• Between one person who takes on all the risks and collects all the profits

• A legal entity that has to register with the government

• Has many owners who own shares of the company