American Free Market Economy Vocabulary

A person who takes a risk to produce goods and services in search of profit.

What is given up when a choice is made . . . the highest valued alternative foregone.

The amount of money exchanged for a good or service.

Markets that are allowed to operate without undue interference from the government.

Combining human, natural, capital & entrepreneurship resources to make/provide goods & services

Business organization authorized by law to act as a legal person. Owners share the profits.

The inability to satisfy all wants at the same time. Resources and goods are limited.

Things that incite or motivate.  Used to change economic behavior.

The amount of a good or service that consumers are willing and able to buy at a certain price.

A form of business organization with two or more owners who share the risks and the profits.

The interaction of supply and demand determines ________________.

Using goods and services.  Consumer preferences and price determine what is purchased.

Factors of production that are used in the production of goods and services.

Through their purchases, consumers determine what goods and services will be produced.

Selecting an item or action from a set of possible alternatives.

A form of business organization with one owner who takes all the risks and all the profits.

Individuals and businesses have the right to own personal property.

Rivalry between producers/sellers of a good or service -  better quality goods at lower price.

Earnings after all expenses have been paid.

The amount of a good or service that producers are willing and able to sell at a certain price.