1-1
What is the difference between the income earned and expenses incurred by a business during a specific period of time?
profit
What are all the tools, equipment, and machinery used to produce goods or provide services?
capital
What are money earned in exchange for work?
wages
What is a science that examines how goods and services are produced, sold, and used?
Economics
Something a person must have in order to survive, such as food, clothing, and shelter
need
What is anywhere buyers and sellers meet to buy and sell goods and services?
market
What develops when demand is higher than the available resources?
scarcity
What is added when products are available at convenient places?
place utility
What is the term for all the activities involved in developing and exchanging products?
business
What is ONE of the FIVE characteristics of a free enterprise system?
private property
profit
economic freedom
voluntary exchange
competition
What is a level of material comfort measured by the goods, services, and luxuries available?
standard of living
What type of economy is where the government makes all the economic decisions for its citizens?
command economy
If the demand for a product becomes greater than the available supply, what develops?
shortage
What type of economy is one in which individuals are free to make their own economic decisions?
market economy
What type of economy is one in which economic decisions are based on a society’s values, culture, and customs?
traditional economy
The customer of a service business is often called what?
client
What is when something is given up in order to gain something else?
trade-off
What is an economic system where the economic resources are privately owned by individuals rather than the government?
capitalism
What is added when it becomes easy for customers to acquire a product?
possession utility
What includes all business activities that involve money?
Finance
What are the THREE of the FOUR functions of business?
Production
Finance
Marketing
Management
What are the FOUR factors of production?
land
labor
capital
entrepreneurship
What is the value of the next best option that was not selected?
opportunity cost
What is comprised of customers who buy products for their own use?
consumer market
What is to exchange one good or service for another good or service?
barter