Key Terms
The private ownership of resources by individuals rather than by the government.
What is Capitalism?
What is a command economy?
Function that involves planning and managing the financial records of the business.
What is Finance?
The difference between the revenues earned by a business and the costs of operating the business.
What is profit?
Individuals and businesses decide what, how, and for whom goods and services are produced.
What is a market economy?
The action or business of promoting and selling products or services, including market research and advertising.
What is Marketing?
Occurs when people's needs and wants are unlimited and the resources to produce the goods and services to meet those needs and wants are limited.
What is scarcity?
An economy where customs, traditions and believes prescribe the principles of economic organization for production of goods and services.
The action of making or manufacturing from components or raw materials, or the process of being so manufactured.
What is production?
The value of the next-best alternative.
What is opportunity cost?
Individuals and businesses as well as the government are involved in making decisions in the marketplace.
What is a mixed economy?
Setting goals, determining how goals can be met, and deciding how to respond to the actions of competitors is the role of what?
What is management?
The process of choosing which needs and wants you will satisfy using the resources you have.
What is economic decision making?
If communism goes with Command Economies, and Capitalism goes with Market Economies, then what goes along with a Mixed Economy?
What is Socialism?
The four functions of business.
What are production, management, marketing, and finance?