business: An organization that seeks to earn profits by providing goods and services.

Canada Water Act: Controls water quality in fresh and marine waters of Canada.

capital: The funds needed to operate an enterprise.

capitalism: An economic system in which markets decide what, when, and for whom to produce.

command economy: An economic system in which government controls all or most factors of production and makes all or most production decisions.

communism: A type of command economy in which the government owns and operates all industries.

competition: The vying among businesses in a particular market or industry to best satisfy consumer demands and earn profits.

demand and supply schedule: Assessment of the relationships between different levels of demand and supply at different price levels.

demand curve: Graph showing how many units of a product will be demanded (bought) at different prices.

demand: The willingness and ability of buyers to purchase a product or service.

deregulation: A reduction in the number of laws affecting business activity.

economic system: The way in which a nation allocates its resources among its citizens.

entrepreneur: An individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.

Environmental Contaminants Act: Establishes regulations for airborne substances that are a danger to human health or to the environment.

factors of production: The resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources.

factory system: A process in which all the machinery, materials, and workers required to produce a good in large quantities are brought together in one place.

finance era: The period during the 1980s when there were many mergers and much buying and selling of business enterprises.

Fisheries Act: Regulates the discharge of harmful substances into water.

Food and Drug Act: Prohibits the sale of food unfit for human consumption and regulates food advertising.

Hazardous Products Act: Regulates banned products and products that can be sold but must be labelled hazardous.

Industrial Revolution: A major change in goods production that began in England in the mid-eighteenth century and was characterized by a shift to the factory system, mass production, and specialization of labour.

information resources: Information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals.

input market: Firms buy resources that they need in the production of goods and services.

labour: The mental and physical training and talents of people; sometimes called human resources.

law of demand: The principle that buyers will purchase (demand) more of a product as price drops.

law of supply: The principle that producers will offer (supply) more of a product as price rises.

lobbyist: A person hired by a company or an industry to represent its interests with government officials.

market economy: An economic system in which individuals control all or most factors of production and make all or most production decisions.

market price (or equilibrium price): Profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal.

market: A mechanism for exchange between the buyers and sellers of a particular good or service.

marketing era: The period during the 1950s and 1960s when businesses began to identify and meet consumer wants in order to make a profit.

mass production: The manufacture of products of uniform quality in large quantities.

mixed market economy: An economic system with elements of both a command economy and a market economy; in practice, typical of most nations' economies.

monopolistic competition: A market or industry characterized by a large number of firms supplying products that are similar but distinctive enough from one another to give firms some ability to influence price.

monopoly: A market or industry with only one producer, who can set the price of its product and/or resources.

natural monopoly: A market or industry in which having only one producer is most efficient because it can meet all of consumers' demand for the product.

natural resources: Items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees.

oligopoly: A market or industry characterized by a small number of very large firms that have the power to influence the price of their product and/or resources.

output market: Firms supply goods and services in response to demand on the part of consumers.

perfect competition: A market or industry characterized by a very large number of small firms producing an identical product so that none of the firms has any ability to influence price.

private enterprise: An economic system characterized by private property rights, freedom of choice, profits, and competition.

privatization: The transfer of activities from the government to the public sector.

production era: The period during the early twentieth century when businesses focused almost exclusively on improving productivity and manufacturing methods.

profit: What remains (if anything) after a business's expenses are subtracted from its sales revenues.

progressive revenue taxes: Taxes levied at a higher rate on higher-income taxpayers and at a lower rate on lower-income taxpayers.

regressive revenue taxes: Taxes that cause poorer people to pay a higher percentage of income than richer people pay.

restrictive taxes: Taxes levied to control certain activities that legislators believe should be controlled.

revenue taxes: Taxes whose main purpose is to fund government services and programs.

sales era: The period during the 1930s and 1940s when businesses focused on sales forces, advertising, and keeping products readily available.

shortage: Situation in which quantity demanded exceeds quantity supplied.

socialism: A kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries.

specialization: The breaking down of complex operations into simple tasks that are easily learned and performed.

supply curve: Graph showing how many units of a product will be supplied (offered for sale) at different prices.

supply: The willingness and ability of producers to offer a good or service for sale.

surplus: Situation in which quantity supplied exceeds quantity demanded.

Textile Labelling Act: Regulates the labelling, sale, importation, and advertising of consumer textile articles.

Tobacco Act: Prohibits cigarette advertising on billboards in retail stores, and assigns financial penalties to violators.

trade association: An organization dedicated to promoting the interests and assisting the members of a particular industry.

Weights and Measures Act: Sets standards of accuracy for weighing and measuring devices.

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