Entrepreneurship - Chapter Two Vocab.

Question 1

Difference between the revenues earned by a business and the costs of operating the business

Accepted Answer

Profit

Question 2

Peoples needs/wants are unlimited and the resources to produce the goods/services are limited

Accepted Answer

Scarcity

Question 3

The means through which goods and services are produced

Accepted Answer

Economic resources

Question 4

Costs that must be paid regardless of how much of a good or service is produced.

Accepted Answer

Fixed Costs

Question 5

Costs that go up and down depending on the quantity of the good or service produced.

Accepted Answer

Variable Costs

Question 6

Disadvantages of producing one additional unit of a good or service.

Accepted Answer

Marginal cost

Question 7

The quantity of a good or service that customers are willing to pay at a given price.

Accepted Answer

Demand

Question 8

Things that you think you must have in order to be satisfied

Accepted Answer

Wants

Question 9

Point at which the supply and demand curves meet

Accepted Answer

Equilibrium price and quantity

Question 10

Raw materials supplied by nature

Accepted Answer

Natural Resources

Question 11

Process of choosing which needs and wants you will satisfy using the resources you have

Accepted Answer

Economic decision making

Question 12

Things that you must have in order to survive

Accepted Answer

Needs

Question 13

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

Accepted Answer

Capitalism

Question 14

The quantity of a good/service a producer is willing to produce at different prices

Accepted Answer

Supply

Question 15

The desire for non-material things

Accepted Answer

Non-Economic Wants

Question 16

Assets used in the production of goods and services

Accepted Answer

Capital Resources

Question 17

Advantages of producing one additional unit of a good or service.

Accepted Answer

Marginal Benefit

Questions 17