CHAPTER 1
Capitalism- The free-market economics system; anyone with "capital" is free to start a business.

Free enterprise system- Economic system which business are privately owned and operate relatively free of government interference.

Entrepreneur- A person who organizes and manages a business, assuming the risk for the sake of of the potential return


CHAPTER 2
Cost of goods sold- The cost os selling "one additional unit" for a product-based business.

EOU Economic of one unit of sale- THe figuring of markup and profit around a business's unit of sale.

Gross profit- Total sales revenue minus total cost of goods sold.

Net profit- the profit left after all cost including taxes, have been subtracted.


CHAPTER 3
Return of investment- Profit on an investment, expressed as a percentage.

rule of 72


CHAPTER 4
opportunity cost- The value of what must be given up in order to obtain something else.

SWOT analyze- A consideration of a situation based on strengths, weakness,opportunity, and threats.

CHAPTER 6
Command Economy- An economy in which the government owns most or all businesses and sets prices and quantities produced

Supply- A schedule of the quantities that a business will make available to sonsumers at various prices.

Demand- The willingness and desire for a commodity together with the availability to pay for it: the amount consumers are ready and willing to buy at the prices offered as in the term.

Market clearing prices- The price at which the amount of a product or service demanded by consumers equals the amount the supllier is willing to sell at that price: the price at which the supply and demand line across.

Free Enterprise system- in which businesses are privately owned and operate realatively free of government interference.

Monopoly- A market with only one producer: the control of the pricing and distribution of a product or service in a given market as a result of lack of competition.


CHAPTER 7
Patent- An exxlusive right, granted by the government to produce, use, and sell an invention or process.