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Vocabulary
More Vocab.
More Vocab.
Comprehension
Misc.
100
What economic system do we use in the United States that allows anyone to own and run a business and gives consumers choices?
the free enterprise system
100
What are consumers?
the people who buy a product
100
Explain what it means to make an investment.
A bank (or lender) loans money to a company in order to make a profit later.
100
What are two examples of businesses in the service industry?
Possible answers: Hospital, school, auto shop, dry cleaners
100
What are some different departments that make up a business and what do they do?
Advertising-Tells people about the product or services the company offers, finance-takes care of the money for the company, production-makes the product or does the service
200
What is the name for a person who organizes and runs their own business?
entrepreneur
200
What is the cost of passing up the next best choice when making a decision?
opportunity cost
200
What is interest?
money that is paid for the use of borrowed or deposited money
200
How do banks help citizens save money?
Banks keep people's savings and pay them interest
200
What is a plan for using money?
a budget
300
What is the money that a business earns after it pays for supplies, tools, salaries and other costs?
profit
300
What is scarcity?
a shortage of resources or products
300
What is money that is put away to be used later?
savings
300
What are some risks of being an entrepreneur?
People may not come to your business and you could lose money and not be able to pay back your investors.
400
What is an investor?
someone who puts money into a business and expects to get some of the profit in return
400
What are imports?
goods that come into the US from other countries
400
What is money people must pay to the government for goods and services?
taxes
400
How do taxes help keep Missouri's government running efficiently?
Taxes help pay for goods and services that are provided by the government and its workers.
500
How does supply and demand work?
If supply is greater than demand, the price will decrease. If demand is greater than supply, the price will increase.
500
What are goods that are made in the US and sent to other countries?
exports
500
Describe the difference between public goods and private goods.
Public goods are paid for with taxes and are produced most efficiently by the government:Private goods are goods and services that are offered by privately owned businesses.
500
Wants are things you would like to have such as a particular item of clothing. Needs are things you cannot live easily without, such as a home or food.
What is the difference between wants and needs? Give an example of each.