Types of Businesses
Business with one owner who takes all the risks and all the profits.
What is a sole proprietorship?
What does the government receive from households and businesses to provide public goods and services?
What are taxes?
Economic decisions are based on custom and past ways.
What is a traditional economy?
Rivalry between producers and/or between sellers of a good or service usually results in better-quality goods and services at lower prices.
What is competition?
Which type of economy has the most amount of competition between businesses?
What is a free market economy?
Owners of a corporation are called...
What are stockholders?
Do households spend their money in the product market or the resource market?
What is the product market?
Private ownership of property/resources with little to no government involvement.
What is a free market economy?
Through their purchases, consumers determine what is produced.
What are the 2 markets in the circular flow diagram? (money moves around in these 2 ways)
What is the product market and resource market?
Business where risks and profits are shared among 2 or more owners.
What is a partnership?
In exchange for their labor/resources, what do households get from producers?
Central ownership (usually by government) of property/resources with little to no consumer choice.
What is a command economy?
Many people are motivated to start a business to earn _________ because you get to keep this after you pay your expenses.
What is profit?
The United States is this type of economy.
What is a mixed economy?
A person who starts their own business - takes a risk to produce and sell goods and services in search of profit.
What is an entrepreneur?
What do producers spend their money on? There are 2 answers.
What is labor and resources?
The government’s role is greater than in a free market economy and less than in a command economy.
What is a mixed economy?
Markets have the right to operate without interference from the gov't.
What is free enterprise?
Supply and demand as buyers and sellers interact in the marketplace determines...
What is price?
Business organization that is authorized by law to act as a legal entity.
What is a corporation?
In exchange for their money, what do producers give to households?
What are goods/services?
What are the 3 basic questions of economics?
What is
What will be produced?
How will it be produced?
For whom will it be produced?
Individuals have the right to own private __________ without interference from the government.
What is property?
In the United States, government involvement in the economy is...
What is limited?