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Definition
| the formal and informal rules that constrain human economic behavior. |
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Term
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Definition
| an economic system based on private property and the market in which, in principle, individuals decide how, what, and for whom to produce. |
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| the control a private individual or firm has over an asset. |
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Definition
| an economic system based on individuals' goodwill towards others, not on their own self-interest, and in which, in principle, society decides what, how, and for whom to produce. |
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Definition
| an economic system based on the market in which the ownership of the means of production resides with a small group of individuals called capitalists. |
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Definition
| private producing units in our society. |
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Definition
| the ability to organize and get something done. |
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Definition
| the consumer's wishes determine what's produced. |
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Definition
| what's left over from total revenues after all the appropriate costs have been subtracted. |
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Definition
| businesses that have only one owner. |
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Definition
| businesses with 2 or more owners. |
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Term
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Definition
| businesses that are treated as a person, and are legally owned by their stockholders, who are not liable for the actions of the corporate 'person'. |
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Definition
| groups of individuals living together and making joint decisions. |
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Definition
| the effect of a decision on a third party not taken into account by the decision maker. |
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Term
| macroeconomic externalities |
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Definition
| externalities that affect the levels of employment, inflation, or growth in the economy as a whole. |
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Term
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Definition
| a good that if supplied to one person must be supplied to all and whose consumption by one individual does not prevent its consumption by another individual. |
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Term
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Definition
| a good that, when consumed by one individual, cannot be consumed by another individual. |
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Term
| demerit goods or activities |
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Definition
| goods or activities that government believes are bad for people even though they choose to use the goods or engage in the activities. |
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Term
| merit goods or activities |
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Definition
| goods and activities that government believes are good for you even though you may not choose to engage in the activities or to consume the goods. |
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Definition
| situations in which the market does not lead to a desired result. |
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Definition
| situations in which the government intervenes and makes things worse. |
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Term
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Definition
| corporations with substantial operations on both the production and sales sides in more than one country. |
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