Business 110: Chapter 2

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing individuals and groups.

The part of economics study that looks at the behavior of people and organizations in particular markets.

The part of economics study that looks at the operation of a nation's economy as a whole.

The study of how to increase resources and to create the conditions that will make better use of these resources.

The process that turns self-directed gain into social and economic benefits for all.

(coined by Adam Smith)

An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.

The quantity of products that manufactures or owners are willing to sell at different prices at a specific time.

the quantity of products that people are willing to buy at different prices at a specific time.

The price determined by supply and demand.