Question | Answer |
What is a business? | a company that sells goods and services |
What are capital resources? | resources made by people, such as factories |
What is the circular flow model | a model of the movements of goods, services, resources, and money in an economy |
What is a community? | a place where people live, work, trade, and share |
What is free enterprise? | a system in which economic decisions are made in markets by people and businesses, with little government influence |
What are human resources? | the skills and abilities of workers used in production of goods and services |
What are markets? | a system in which people and businesses buy and sell goods, services, and resources |
What are natural resources? | hings used in production that occur naturally in the world, such as water |
What does nonprofit mean? | Institutions developed to increase the well-being of others like education, religion, and health. |
What is an opportunity cost? | The value of the next best alternative given up when a choice is made |
What is philanthropy? | The effort to increase the well-being of people through charitable giving |
What are private goods and services? | Exchanged in the markets for a price |
What are public goods and services? | Provide benefits to many people and people cannot be restricted from using them. |
What is a profit? | They money that is left over after a business pays all its costs |
What is scarcity? | Situation where people can’t have everything they want because of limited resources |
What are taxes? | required payments to the government |