Chapter 1 Review - Principles of Business

_________________is the money left from sales after all of the costs of operating a business have been paid.

The process of choosing which wants, among several options, will be satisfied is called_________________

The right of private property means you can own, use, or dispose of things of value.

One type of human resource is an entrepreneur.

All economic resources have a limited supply.

The U.S. economic system is based on four important principles.

Capitalism is another name for a traditional economic system.

An economy in which the resources are owned and controlled by the people of the country.

America is the world leader in consuming goods and services throughout the twentieth century.

Tangible products you can purchase to meet your wants and needs are called goods.

An economy in which goods and services are produced the way they have always been produced. It is used in countries that

Not having enough resources to satisfy every need.

___________are businesses offering very similar products to the same customers.

The end of the twentieth century saw a shift away from command economies and toward market economies.

Supply is the quantity of a good or service that a consumer is willing and able to buy at a particular price.

Farmers and oil workers are what type of resource?

Although nations differ in the type and amount of economic resources they have, they all have the same economic needs.

The ________ is the point where supply and demand are equal.

The private ownership of economic resources by individuals rather than by the government.

________means that you can make economic decisions independently and must accept the consequences of those decisions.

The mismatch of unlimited wants and needs and limited economic resources is called the basic economic problem.

Generally, a lack of competition will result in lower prices for goods and services.

The people who produce goods and services are known as natural resources.

Economic resources are also known as factors of production. 

An entrepreneur, a type of human resource, is the risk taker who creates a new product or service.

The largest producer of goods and services in the world is

When you give up something to have something else,

Tangible products you can purchase to meet your wants and needs are called goods.

What is the first step in the decision-making process?

A nation’s plan for answering the three economic questions is called its __________