Unit 6 A The Economy and the Individual Flashcards


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1

government funds given to an individual or group to
encourage certain actions

subsidy

2

quantities of a product or service offered for sale at all
possible market prices

supply

3

document granting a business the government's
permission to organize

charter

4

regular release of important financial information to
investors

transparency

5

each price change causes a relatively larger change in
quantity demanded

demand elasticity

6

money left over after all taxes on it have been paid

disposable income

7

resources used to produce goods and services

factors of production

8

system allowing businesses to compete for profit with
little government interference

market economy

9

expenses not affected by the amount of units produced

fixed costs

10

extra benefits gained from purchasing a product or service

marginal utility