entrepreneur: a person who creates abusiness in the
hope of earning a profit.
entrepreneurship: the managerial or organizational
skills needed by most firms to produce goods and services at
a profit.
equation of exchange: tells us that total spending is
equal to the total value of the goods and services produced by
the economy.
288
equilibrium price: the price of a good or service at which
the quantity demanded matches the quantity supplied.
equilibrium quantity: the number of products that
would be sold at the equilibrium or market price.
excess quantity demanded: the amount of a product
that could be sold at a price lower than the market price.
Excess quantity supplied: the amount of a product
available at a price higher than the market price.
excise tax: a tax levied on the manufacture or sale of a
specific item (a tax on perfume, for example).
expansion: phase of the business cycle following
recession when the economy begins to recover.
