Econ Flashcards(A+)

Economics - the branch of social science that deals with the production and distribution and consumption of goods and services and their management basic economic decisions - how ppl in a society make the what, how and who decisions Entrepeneur - a person who starts up & takes the risk of a business goods - articles of commerce Opportunity costs - the most desirable alternative given up as the result of a decision scarcity - a small and inadequate amount Services - actions or activities that one person performs for another Market - the world of commercial activity where goods and services are bought and sold Capital resources - The tools, equipment, and buildings that are used to produce goods and services income statement - a financial statement that gives operating results for a specific period Financial markets - financial institutions through which savers can directly provide funds to borrowers IPO Market - primary market where companies sell stock to raise money Trade credit - the practice of buying goods and services now and paying for them later Retained earnings - profits that are reinvested Stock market - an exchange where security trading is conducted by professional stockbrokers common stock - the most basic form of ownership, including voting rights on major issues, in a company Dividends - profits paid to investors bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money Balance Sheet - a financial statement that reports assets, liabilities, and owner's equity on a specific date Free Enterprise - an economy that relies chiefly on market forces to allocate goods and resources and to determine prices