Resource Allocation – A way to distribute resources.
Good – There is not an unlimited supply of any good
Ethics – The 'rights' and 'wrongs' of an issue
YED Income Elasticity of Demand – A measure of how much the demand for a product changes when there is a change in income
Cost – The alternative that we give up when we choose one course of action over another.
Supply – refers to the amount of a good or service available at any particular price
marginal social cost curve – the cost to society (the supply curve)
elasticity of demand – The degree to which demand for a good or service varies with its price. Normally, sales increase with drop in prices and decrease with rise in prices
The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls
Price ceiling – A maximum legal price that can be charged for a product
profit motive – To be motivated by the desire to make money.
Proprietorship – A form of business organization with one owner who takes all the risks and the all the profits
The demаnd curve fоr cоrn is dоwnwаrd sloping. If the price of corn, аn inferior good, falls
Development – Economic growth or an increase in living standards
Budget – listing of your revenue and expenses
Guns or Butter – A phrase expressing the idea that a country that decides to produce more military goods (guns) has fewer resources to produce consumer goods (butter) and vice versa.
capital – Money used for investments in business.