Business.- An organization that provides goods or services to earn profits.
Profits.- The difference between a business’s revenues and its expenses.Economic System.- A Nation’s system for allocating its resources among its citizens.
Factors of Production.- Resources used in the production of goods and services (labor, capital, entrepreneurs,physical resources, and information resources).
Market..- Mechanism of exchange between buyers and sellers of a particular good or service.
Input Market.- Market in which firms buy resources formsupplier households.
Output Market.- Market in which firms supply goods and services in response to demand on the part of households.
Capitalism.- Market economy that provides for privateownership of production and encourages entrepreneurship by offering profits as an incentive.
Socialism.- Planned Economic system in which the government owns and operates only selected major sources ofproduction.
Demand.- The willingness and ability of buyers to purchase a good or service.
Supply.- The willingness and ability of producers to offer a good or service for sale.
Law of Demand.-Principle that buyers will purchase(demand) more of a product as its price drops; and less as its price increases.
Law of Supply.- Principle that Producers will offer(supply) more of a product forsale as its price rises and less as its price drops.
Surplus (superávit o excedente).- Situation in which quantity supplied exceeds quantity demanded.
Shortage (escasez).- Situation inwhich quantity demanded exceeds quantity supplied.
Private Enterprise (Iniciativa Privada).- Economic system that allows individuals to pursue(perseguir) their own interests without undue(excesiva)governmental restriction.
Competition.- Vying(Competencia, esfuerzo, trabajo) among businesses for the same resources or customers.
Perfect competition.- Market or industry characterized by...