American Free Market Economy Vocabulary

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

Earnings after all expenses have been paid.

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

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

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.

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

Individuals and businesses have the right to own personal property.

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

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

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

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

The interaction of supply and demand determines ________________.

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

The amount of money exchanged for a good or service.

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

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

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

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

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