5.02

The Organized way in which a country handles its economic decisions and solves its economic problems.

• Economic System

• Traditional economic System

• Command Economic

• Socialism

An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition.

• Command

• Traditional

• Communism

• Socialism

An economic system in which all or many of the means of production and distribution are owned and controlled by the government.

• Communism

• Socialism

• Command

• Tradition

A modified command economic system in which government owns the basic means of production and allows private ownership of businesses as well

• Communism

• Socialism

• Tradional

• Command

Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid.

• Expenses

• Income

• Profit Motive

• Profit

The desire to make a profit which moves people to invest in business

• income

• profit motive

• expenses

• profit

Money spent or cost incurred in an organization's efforts to generate revenue; the cost of doing business.

• expenses

• income

• profit

• profit motive

Money received by resource owners and producers for supplying goods and services to customers

• profit motive

• expenses

• income

• profit

difference between sales income and the direct costs of making those products

• cost of goods

• operating expenses

• gross profit

• net profit

gross profit less all expenses associated with the normal running of the business

• cost of goods

• net profit

• operating expenses

• gross profit