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Chapter 1

TermDefinition
Budget deficit The condition in which a nation spends more than it takes in from taxes
Business Individuals or organizations who try to earn a profit by providing products that satisfy people’s needs
Capital The funds used to acquire the natural human resources needed to provide products; also called financial resources
Capitalism (free enterprise) An economic system in which individuals own and operate the majority of businesses that provide goods and services
Communism First described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources
Competition The rivalry among businesses for consumers’ dollars
Created by: kimday1977
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