Intro to Business
Person who starts a new business or purchases an existing business.
Entreprenur
Economic resources a nation uses to make goods and supply services for its population.
Factors of Production
An economy in which both the government and individuals make decisions about economic resources.
Mixed Economy
An economic principle that states the price of a product is determined by the relationship of the supply of the product and the demand for the product.
Law of Supply and Demand
Taxes
Mandatory payment to the government
Term for all the activities involved in developing and exchanging products.
Business
All the tools, equipment, and machinery used to produce goods or provide services.
Capital
An economy in which economic decisions are based on a society’s values, culture, and customs.
Desire consumers have for a goods or services
Demand
Wages
Money in exchange for work
The difference between the income earned and expenses incurred by a business during a specific period of time.
Profit
The study of choice due to scarcity.
Economics
An economy in which the government makes all the economic decisions for its citizens.
Command Economic System
The total amount of good or service available for consumption
Supply
A customer is also identified as a ____________
consumer
Level of material comfort measured by the goods, services, and luxuries available.
Standard of Living
A list of options.
Trade-off
An economy in which individuals are free to make their own economic decisions.
Market Economic System
When demand is greater than supply, a _______________ develops
shortage
Competition
The action taken by two or more businesses attempting to attract the same customers
Identify the Functions of Business
Product
Finance
Marketing
Management
The value of the next best option that was not selected
Opportunity Cost
An economic system where the economic resources are privately owned by individuals rather than the government. (Another word for market economy).
Capitalism
When demand is less than supply, a _____________ develops
surplus
Three economic benefits generated by businesses in an economy
1. Employment
2. Standard of living
3. Taxes