Basics of Economics and Business Concepts

Entrepreneurs

• Individuals who create and operate businesses.

Factors of Production

• Resources used to create goods and services, including land, labor, capital, and entrepreneurship.

Banks

• Financial institutions that accept deposits and make loans.

Social Contract

• Agreement between people and their government defining rights and responsibilities.

Checks (Payor, Payee)

• Payment instruments; payor is the person writing the check, payee is the recipient.

Political Spectrum

• Range of political views from far-left to far-right.

Employer vs. Employee

• Relationship where one party (employer) hires another party (employee) for work.

Opportunity Cost

• Value of the next best alternative forgone when making a choice.

Value of Money

• Purchasing power of money; its ability to buy goods and services.

Scarcity

• Limited resources to meet unlimited wants.

Interdependence

• Reliance on other people or countries for goods and services.

Dictatorship

• Government where a single person or small group holds absolute power.

Democracy

• System of government where citizens participate in decision-making.

US Government

• Federal system with branches (legislative, executive, judicial).

Monarchies

• Systems of government ruled by a monarch (king or queen).

Democratic vs. Republican Values

• Differing beliefs about government and society.

Checks and Balances

• Mechanisms in government to limit the power of each branch.

Bias

• Preconceived judgment or opinion that affects objectivity.

Political Views

• Opinions about how government should function and what policies should be implemented.

Transparency

• Openness and honesty in government actions and decisions.

State of Nature

• Hypothetical condition where there is no government or social order.