Principles of Business Chapter 1 Review

Willingness and ability to start a new business.

The difference between the income earned and the expenses incurred by a business.

Anything that can be bought or sold

Organized way in which a nation chooses to use its resources to create goods and services.

Anywhere buyer and sellers meet to buy and sell goods and services.

An economy in which both government and individuals make decisions about economic resources.

All tools, equipment, and machinery used to produce goods or provide services

The value of the next best option that was not selected.

All activities involved in developing and exchanging is?

When demand is higher than the available resources

A science that examines how goods and services are produced, sold, and used.

The utility that is added when a business changes the form of a good or service to more useful.

Products businesses use to produce other goods.

Something a person must have to survive.

An economy in which the government makes all the economic decisions for its citizens.

An economic system where resources are privately owned by individuals rather than the government.

Individual or group who buys products.

An economy in which economic decisions are based on society's values, culture, and customs.

Something that a person desires but can live without.

Level of material comfort measures by the goods, services, and luxuries available

Action or task that is performed, usually for a fee.

Customers who purchase goods and services for their own use.

The customer of a service business is called?

Work performed by people in businesses, also called human resorces

Which of the following is NOT a characteristic of a Free Enterprise system

When an item is given up in order to gain something else

The law that says price of a product is determined by the relationship of the supply & demand of a product

Money earned in exchange for work.

An economy in which individuals are free to make their own economic decisions.

Actions taken by two or more businesses attempting to attract the same customers.