Marketing Vocabulary #5

1. Economy (economic system) – the way a nation makes economic choices; choices such as how a nation will use its resources to produce and distribute goods & services

2. Economics – the science dealing with the production, distribution, and consumption of wealth and the various related problems of labor, finance, taxation, etc.

3. Free enterprise system – encourages individuals to start and operate their own businesses without government involvement.

4. Supply – amount of goods manufacturers are willing to make and sell

5. Demand – consumer willingness and ability to buy products

6. Equilibrium point- the point where supply and demand meet

7. Competition – struggle between companies to get customers to buy from them

8. Risk – the potential for loss or failure in relation to the potential for improved earnings

9. Profit – the money earned from conducting business after all costs and expenses have been paid.

10. Capitalism – economic system characterized by private ownershiop of businesses and marketplace competition (free enterprise)