STRONG
An economy in which the government makes all the economic decisions for its citizens.
A. command economy
An economy in which both the government and individuals make decisions about economic resources.
D. mixed economy
Level of material comfort measured by the goods, services, and luxuries available.
B. standard of living
Definition: Economic resources a nation uses to make goods and supply services for its population.
A. factors of production
Definition: Person who starts a new business or purchases an existing business.
An economy in which economic decisions are based on a society’s values, culture, and customs.
Science that examines how goods and services are produced, sold, and used.
D. economics
An economy in which individuals are free to make their own economic decisions, also known as free enterprise or private enterprise.
A. market economy
All the tools, equipment, and machinery used to produce goods or provide services.
Process used to measure the benefits of a decision minus the costs associated with taking that action.
B. cost-benefit analysis
Organized way in which a nation chooses to use its resources to create goods and services.
A. economic system
Term for all the activities involved in developing and exchanging products.
B. business
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.
B. law of supply and demand
Definition: Process of choosing an option after evaluating the available information and weighing the costs and benefits of your alternatives.
C. systematic decision-making
An economic system where the economic resources are privately owned by individuals rather than the government.
D. capitalism
The difference between the income earned and expenses incurred by a business during a specific period of time.
Period of economic contraction that is severe and lasts a long time.
When a lower price is the main reason for customers to buy from one business over another.
B. price competition
The difference between the income earned and expenses incurred by a business during a specific period of time.
A. profit
Person who starts a new business or purchases an existing business.
An economy in which individuals are free to make their own economic decisions, also known as free enterprise or private enterprise.
B. market economy
All the tools, equipment, and machinery used to produce goods or provide services.
B. capital
An economic system where the economic resources are privately owned by individuals rather than the government.
Term for all the activities involved in developing and exchanging products.
B. business
An economy in which the government makes all the economic decisions for its citizens.