Economics Unit 1 Fundamentals

Entrepreneurship – The risk-taking that occurs when a person starts a new business.
Outsourcing – The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs
Risk – taking a chance on something
Underground Economy – unreported legal and illegal activities that do not show up in GDP statistics
Entrepreneurship – The effort used to coordinate the factors of production – natural resources, labor, physical capital, and human capital – to produce and sell products.
Who decides what to produce? – Consumers, firms, and the govt.
Corporation Tax – a tax on firms' profits.
What is the present value of $100 paid in 5 years if the interest rate is 5 percent?
Maquiladoras – the term given to zones in Northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.
trade agreement – trade treaty
Total revenue – Test we use to determine elasticity of demand
XED (Competitive demand) – weak 0-1
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total cost – fixed costs plus variable costs
Whаt is the present vаlue оf $100 pаid in 5 years if the interest rate is 5 percent?
market demand schedule – a listing of how much of an item all consumers are willing to purchase at each price.
Choice – Select an item or action from a set of possible alternatives.
Economic Freedom – (def.) including freedom to work where you want, firms to produce what they want, and consumers to buy what they want.

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