Lesson 1
A person or a company who makes a good or service to sell to others (Page 133).
What is a producer?
The land, homes, stores, and goods that people or companies own (Page 136).
What is private property?
The profit that a business earns over a period of time, such as a year (Page 142).
What is income?
Things that encourage us to take an action (Page 149).
What is an incentive?
Goods that are shipped to another country to be sold here (Page 156).
What is an export?
A person or a company who buys a good or service (Page 133).
What is a consumer?
The type of money used in a particular place (Page 140).
What is currency?
The amount of a product that businesses have (Page 144).
What is supply?
The use of public notices to bring attention to a product or service (Page 149).
What is advertising?
The separation of a work process into a number of different jobs (Page 157).
What is the division of labor?
When producers have the right to create any goods or services they want (Page 134).
What is a free enterprise system?
To trade one type of good or service for another type (Page 141).
What is a barter?
The amount of a product that consumers are willing to buy (Page 144).
What is demand?
Adding to your account regularly, usually once a month (Page 150).
What is interest?
The ability of a company, group, or person to focus on a single task (Page 157).
What is specialization?
Another name for a free enterprise system (Page 134).
What is a market economy?
A rise in the usual price of many goods and services (Page 141).
What is inflation?
When the amount of a resource is limited (Page 147).
What is scarcity?
New inventions or ways of doing things (Page 155).
What is an innovation?
The amount a company can produce with a certain amount of labor (Page 157).
What is productivity?
When the government decides what goods and services can be made and sold (Page 134).
What is a command economy?
The money a business has left over after it pays all its costs (Page 142).
What is a profit?
The value of an item you didn't buy (Page 148).
What is opportunity cost?
Goods that are brought in from another country to be sold here (Page 156).
What is an import?
The process of hiring people to work outside of a company (Page 158).
What is outsourcing?