| Question | Answer |
| things that incite or motivate you to change
your economic behavior | Incentives |
| consumers determine through purchases
what goods and services will be produced | Consumer sovereignty |
| the amount of money exchanged for a good or
service | Price |
| consists of earning after all expenses have
been paid | Profit |
| resources, goods, services, and money flowing
throughout the economy | Circular flow |
| what is given up when a choice is made- the
highest valued alternative | Opportunity cost |
| a business owned by one person who takes all
of the risks and all of the profits | Sole proprietorship |
| property owned by individuals and businesses
for use without undue interference by the
government | Private property |
| factors of production that are used in the
production of goods and services | Resources |
| the combining of human, natural, capital, and
business resources to make goods and
services | Production |
| a person who takes a risk to produce goods
and services in search of a profit | Entrepreneur |
| the inability to satisfy all wants at the same
time | Scarcity |
| rivalry between producers and sellers of
goods and services that results in better
quality goods and services at a lower price | Competition |
| time, energy, and skills needed to produce
goods and services | Human resources |
| a large business with many owners called
stock holders | Corporation |
| the resources from the land that are needed
to produce goods and services | Natural resources |
| using goods and services | Consumption |
| selecting an item or action from a set of
alternatives | Choice |
| a form of business owned by 2 or more
individuals who share all of the risks and
profits | Partnership |
| the tools, machinery, factories and money
that are used in providing goods and services | Capital resources |
| the amount of a good or service that
producers are willing and able to sell at a
certain price | Supply |
| the amount of a good or service that
consumers are willing and able to buy at a
certain price | Demand |
| people who buy and use products | Consumer |
| people who use resources to provide goods
and services | Producer |
| the management of the resources of a country | Economy |
