Economics Vocab Quiz Review

Business organization with TWO or more owners who share the risks and the profits.

Business organization - by law can act as a legal person, regardless of number of owners.

Person who takes a risk to produce goods/services in search of profit.

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

Business organization with one owner who takes all the risks and gets all the profits.

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

Amount of money exchanged for a good or service.

What type of economic system would you find in a country led by a dictator?

Combining of human, natural, capital, and entrepreneurship resources to make goods/services.

Individuals and businesses have the right to own personal property

The inability to satisfy all wants at the same time.

Determines price.

Things that incite or motivate; used to change economic behavior.

Consumers determine through purchases what goods and services will be produced.

Rivalry btw producers/sellers of a good/service- results in better quality and/or lower prices.

What is the most common economic system in the world today?

What is given up when a choice is made.

Using goods or services.

Factors used in the production of goods/services (natural, human, capital, entrepreneurship).

Earnings, or what is left after all expenses have been paid.