Term | Definition |
Incentives | Things that incite or motivate you to change your economic behavior |
Consumer Sovereignty | Consumers determine through purchases what goods and services will be produced |
Price | The amount of money exchanged for a good or service |
Profit | Consists of earning after all expenses have been paid |
Circular Flow | Resources, goods, services, and money flowing throughout the economy |
Sole Proprietorship | A business owned by one person who takes all of the risks and all of the profits |
Private Property | Property owned by individuals and businesses for use without undue interference by the government |
Resources | Factors of production that are used in the production of goods and services |
Production | The combining of human, natural, capital, and business resources to make goods and services |
Entrepreneur | A person who takes a risk to produce goods and services in search of a profit |
Scarcity | The inability to satisfy all wants at the same time |
Competition ` | Rivalry between producers and sellers of goods and services that results in better quality goods and services at a lower price |
Human Resources | Time, energy, and skills needed to produce goods and services |
Corporation | A large business with many owners called stock holders |
Natural Resources | The resources from the land that are needed to produce goods and services |
Consumption | Using goods and services |
Choice | Selecting an item or action from a set of alternatives |
Partnership | A form of business owned by 2 or more individuals who share all of the risks and profits |
Capital Resources | The tools, machinery, factories and money that are used in providing goods and services |
Supply | The amount of a good or service that producers are willing and able to sell at a certain price |
Demand | The amount of good or service that consumers are willing and able to buy at a certain price |
Consumer | People who buy and use products |
Producer | People who use resources to provide goods and services |
Economy | The management of the resources of a country |