Business Basics
A physical item that can be touched.
What is a Good?
The willingness and ability to start a new business
What is Entrepreneurship?
An economy where individuals are free to make their own economic decisions.
What is a Market Economy?
The level of material comfort measured by goods, services, and luxuries available.
What is Standard of Living?
The value of the next best option that was not selected.
What is Opportunity Cost?
This term means all the activities involved in developing and exchanging products.
What is Business
is the work performed by people in organizations; human resources
What is Labor?
Government makes all economic decisions for its citizens
What is a Command Economy?
The difference between income earned and expenses incurred by a business.
What is Profit?
The action taken by two or more businesses attempting to attract the same customers
What is Competition?
An individual or group who buys products, and those who purchase them for personal use.
Who are Customers and Consumers?
The tools, equipment, and machinery used to produce goods or services.
What is Capital?
economic resources are privately owned by individuals rather than the government
What is Capitalism
States that the price of a product is determined by the relationship between supply and demand.
What is the Law of Supply and Demand?
Unlimited wants cannot be filled with limited resources
What is the Economic Problem?
Anything that can be bought or sold.
What is a Product?
Includes all of a nation’s natural resources; raw materials found in nature
What is Land?
An economy where decisions are based on a society’s values, culture, and customs.
What is a Traditional Economy?
Money earned in exchange for work.
What are Wages?
When something is given up in order to gain something else.
What is a Trade-off?
An action or task performed, usually for a fee.
What is a Service?
Products businesses use to produce final products for consumers.
What are Capital Goods?
A system where both the government and individuals make decisions about resources
What is a Mixed Economy
The characteristics of a product that satisfy wants and needs.
What is Utility?
Develops when demand is higher than available resources.
What is Scarcity?