individuals or organizations who try to earn a profit by providing products that satisfy people’s needs

a good or service with tangible and intangible characteristics that provide satisfaction and benefits

the difference between what it costs to make and sell a product and what a customer pays for it

organizations that may provide goods or services but do not have the fundamental purpose of earning profits

groups that have a stake in the success and outcomes of a business

the study of how resources are distributed for the production of goods and services within a social system

land, forests, minerals, water, and other things that are not made by people

the physical and mental abilities that people use to produce goods and services; also called labor

the funds used to acquire the natural and human resources needed to provide products; also called capital

a description of how a particular society distributes its resources to produce goods and services

first described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources

an economic system in which the government owns and operates basic industries but individuals own most businesses

an economic system in which individuals own and operate the majority of businesses that provide goods and services

pure capitalism, in which all economic decisions are made without government intervention

economies made up of elements from more than one economic system

the number of goods and services that consumers are willing to buy at different prices at a specific time

the number of products—goods and services—that businesses are willing to sell at different prices at a specific time

the price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time

the rivalry among businesses for consumers’ dollars

the market structure that exists when there are many small businesses selling one standardized product

the market structure that exists when there are very few businesses selling a product

the market structure that exists when there is only one business providing a product in a given market

the situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment

a condition characterized by a continuing rise in prices

a slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers

a decline in production, employment, and income

the condition in which a percentage of the population wants to work but is unable to find jobs

a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced

the sum of all goods and services produced in a country during a year

the condition in which a nation spends more than it takes in from taxes