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
