Understanding Economic Concepts

Interdependence

• When two or more companies rely on each other to make money.

• A situation where companies operate independently without any reliance on each other.

• A business strategy that focuses solely on maximizing individual profits.

• A type of market structure where one company dominates the entire market.

Producer

• A person or company that makes goods.

• A person who sells goods to consumers.

• A company that provides services to other businesses.

• An individual who manages financial investments.

Demand

• The total amount of a product available for sale.

• How much people are willing to pay for a product.

• The quantity of a product that consumers are willing to buy at a given price.

• The relationship between price and quantity supplied.

Competition

• When two companies collaborate to reduce costs.

• When two companies compete to make the most money.

• When a single company monopolizes the market.

• When companies merge to increase market share.

Consumer

• A person who buys goods.

• A person who sells goods.

• A person who manufactures goods.

• A person who distributes goods.

Entrepreneur

• Someone who starts a business.

• A person who invests in stocks.

• An individual who works for a corporation.

• A manager in a government agency.

Natural Resource

• A resource from nature.

• A man-made product.

• A type of financial asset.

• A technological innovation.

Capital Resource

• Items a worker needs to do their job.

• Tools that are used in production.

• Financial resources available for investment.

• Natural resources found in the environment.

Market Economy

• You can buy or sell anything you want.

• The government controls all economic activities.

• Prices are set by the government.

• Only certain goods can be traded.

Service

• When you pay or buy something for you.

• A type of product that is sold in stores.

• An activity that provides entertainment or leisure.

• A method of communication between people.