Chapter 17

Economic principle that states that businesses will produce more products when they can sell them at higher prices

• law of supply

• law of demand

A type of business that is recognized as a separate legal entity

• sole proprietorship

• corporation

A small business owned by one person

• corporation

• sole proprietorship

A person who organizes, manages, and assumes the risks of a business

• entrepreneur

• corporation

Lack of a particular resource

• capital

• scarcity

Shares of ownership of a corporation

• stock

• capital

Economic system based on private ownership of the means of production

• capitalism

• entrepreneur

Money a business has left after paying its expenses

• profit

• dividends

Human effort used to produce goods and services

• labor

• scarcity

Economic system in which people are free to compete, to earn a living, to earn a profit, and to own property

• command economy

• market economy