Intro to Business Chapter 1
a science that examines how goods and services are produced, sold, and used
economics
the willingness and ability to start a new business
entrepreneurship
the economic resources a nation uses to make goods and supply services for its population
factors of production
a business function that includes all business activities that involve money is
finance
There are ________ steps in the systematic decision making process
five
products are commonly known as ______________
goods and services
the work performed by people in organizations
labor
In a __________________ economy, individuals are free to make their own economic decisions
market
anywhere a business exchange takes place
market
economy where both government and individuals make the decisions about economic resources
mixed economy
a ________________ is something a person must have to survive
need
utility describes the characteristics of a product that satisfy _____________
needs and wants
The value of the next best option that is not selected is ________________________
opportunity cost
_______________ utility is added when products are available at convenient places
place
money that a business has left over after all the expenses and costs of running the business are paid
profit
when demand is higher than the available resources
scarcity
an action or task that is performed, usually for a fee
service
The level of material comfort as measured by the goods and services that are available
standard of living
the price of product is determined by the law of ________________________
supply and demand
the market price for a product is determined at a point where ________________________
supply equals demand
When demand for a product becomes greater than available supply, a __________________ develops
surplus
the process of choosing an option after evaluating the available information and weighing the cost and benefits of the alternatives
systematic decision making
a ______________ is when something is given up in order to gain something else
trade off
economy where economic decisions are based in the society's values, culture, and customs
traditional Economy
the characteristics of a product that satisfy wants and needs
utility
term for all activities involved in developing and exchanging products
Business
Entrepreneurs take risks to start and run _____________________
Businesses
___________________is all of the tools, equipment, and machinery used to produce goods and services
Capital
which of the following is NOT a function of business A. Capitalism B. Finance C. Marketing D. Production
Capitalism
anything that can be bought or sold; includes goods and services
Product
What are the important economic question related to scarcity that every nation must answer
What should we produce? How should we produce it? For whom should we produce it?
products businesses use to produce final products for consumers
capital goods
an economic system where the economic resources are privately owned by individuals rather than the government
capitalism
the government makes all the economic decisions for its citizens in a __________________ economy
command
the driving force in choosing to start a business is __________________
competition
an individual or group that buys products is called a
consumer
an individual or group who buys products
customer
Money earned in exchange for work are
wages
