Economics Glossary

2. Complex group of firms in many countries each producing a component of a final product.
6. A company that operates in many countries with independent headquarters in each.(McDonald's)
9. A company which operates in several countries with its headquarters in the parent country. (Apple)
11. An economy where people produce only enough goods and services for their own family
13. A system where factors of production are owned by the government
14. A system which allows private ownership of the factors of production
15. Where actions by one party have impacts on another, particularly economically.

1. The cost of the next-best alternative opportunity
3. A system where all factors of production, distribution and consumption of goods and services are controlled by the government
4. Raw materials used to make goods and services (land, labour, capital & enterprise)
5. Income flows that are removed from the Circular Flow model. (savings, tax, imports)
7. Place where goods and services are bought and sold.
8. Place where factors of production are bought and sold.
10. Income flows which are added to the Circular Flow of Income model (investment, govt. spending, exports)
12. Financial assistance given to people by the Government