Business

Private ownership of resources by individuals rather than by the government.

Capitalism

Economy in which the resources are owned and controlled by the people of the country.

Command economy

Individuals and organizations that determine what products and services will be available for sale.

Producers

Activities provided for the satisfaction of others that are consumed at the same time they are produced.

Services

a person who buys and uses goods and services

consumer

Giving up on something to have something else

trade-off

Which of the following addresses the economic question of how to produce?

requiring individuals to complete specific types of work

Both individuals and organizations can be producers

true

Consumers are individuals and organizations that determine what products and services will be available for sale.

true

It is not always easy to determine the products and services that satisfy needs and those that satisfy wants.

true

The basic economic problem results from scarcity.

true

When there are many competitors in a market, individual businesses are not able to easily raise their prices.

true

In a market economy, a marketplace is always a physical location where economic transactions take place.

false

Supply is the quantity of a good or service that a consumer is willing and able to buy at a particular price.

false

Things that you can see and touch.

goods

Which of the following is not a principle upon which the U.S. economic system is based?

government regulation

Supply is the quantity of a good or service that a consumer is willing and able to buy at a particular price.

will usually decrease

Economic decision making is the process of choosing _____.

which needs and wants will be satisfied

The method a country uses to answer the three economic questions.

Economic System

Process of choosing which needs and wants will be satisfied.

Economic decision making

Things available to be used to produce goods and services.

Economic resources

Economy in which resources are owned and controlled by the government.

Market Economy

Economy that combines elements of the command and market economies.

Mixed economy

Value of the next-best alternative that you were not able to choose.

Opportunity cost

Economy in which goods and services are produced the way it has always been done.

Traditional economy

When many more people wish to purchase a product, its price will tend to _____.

capital resources

Each of the following is one of the three economic questions that must be answered by all nations except_____. a. What needs and wants will be satisfied with the goods and services produced? b. What goods and services will be produced? c. How will the goods and services be produced? d. Who will receive the profits earned when goods and services are produced?

d

Quantity of a good or service that consumers are willing and able to buy.

demand

When many more people wish to purchase a product, its price will tend to _____.

increase

What are the 3 factors of production?

land, labor, capital

The primary reason business owners make investments and take risks in a private enterprise system is to

make a profit

the point where supply and demand are equal

market price

Most nations of the world can be classified as having a _____.

mixed economy

Things that are required in order to live.

needs

Market price is determined by all of the following except _____.

opportunity cost

A demand curve illustrates the relationship between quantity demanded of a product and _____.

price

Not having enough resources to satisfy every need

scarcity

An example of a natural resource is

sunlight

Quantity of a good or service that businesses are willing and able to provide.

supply

_____ refers to the quantity of a good or service that businesses are willing and able to provide.

supply

things that add comfort and pleasure to your life

wants

The decision-making process is best to use when

you are facing a decision with several good alternatives