Business Ownership
(Chapter 8)
(Chapter 8)
An organization created specifically to raise money and support a city museum (without trying to make a profit) is this type of organization
What is a nonprofit organization
This economic system is often associated with free markets with little government control, and is the system we have in the United States.
What is capitalism
This term describes the ongoing problem of not having enough resources to satisfy all human wants
What is scarcity
This is the total value of all final goods and services produced within a country in a given year and is used to measure the size of a nation’s economy.
What is GDP - Gross Domestic Product -
This economic term means the desire for a good or service and the ability (money) to pay for it.
What is Demand
What is a franchise
In this economic system, the government controls the economy and individuals are not allowed to privately own property or major businesses.
What is communism
Food, water, and shelter are examples of these basic things people must have to survive.
What are needs
This is the percentage of people in the labor force who are willing and able to work, are actively looking for a job, but cannot find one, and it is used to measure unemployment in the economy; it reached its highest level (about 25%) during the Great Depression.
What is the unemployment rate
This economic term means the desire and ability to produce and sell a product.
What is Supply
This business structure is owned by shareholders and provides limited liability to its owners
What is a corporation
Highways, mass transit systems, schools, and hospitals are examples of this.
What is infrastructure
Video games, jewelry, and movie tickets are examples of these things people desire but do not need to survive.
What are wants
This is a contraction in the economy (the economy is getting smaller) that lasts two or more quarters, and it is not as severe as a similar term that starts with “D”; this term starts with the letter “R.”
What is a recession
When supply increases, this usually happens to price
What is the price will decrease
This type of business has one owner who has unlimited liability and the business ends if the owner dies
What is a sole proprietorship
This term refers to government payment that helps cover the cost of an economic activity considered to be in the public interest.
What is a subsidy
This happens when there is more of a product available than people need.
What is a surplus
This is the general increase in prices of goods and services over time that reduces purchasing power, and it is something people are experiencing at relatively high levels in 2026
What is inflation
When supply decreases, this usually happens to price
What is the price will increase
This type of organization is owned and operated by the people who use its services, where members share in the profits, make group decisions, and work together to meet their common needs
What is a co-op or a cooperative
North Korea is an example of this type of economic system.
What is a command economy
When resources are not being used to their full potential, this condition exists.
What is underutilization
This refers to how income is distributed in an economy when some people or households earn much higher amounts of money than others, creating a large gap between high earners and low earners, and it can be seen in countries like the United States, Brazil, and South Africa
What is income inequality
When supply increases, this usually happens to quantity available in the market
What is an increase in quantity