Free Enterprise System Vocabulary

______ is how much of a good there is for people to buy.

• demand

• supply

• scarcity

• surplus

_____ is the amount of a good or service that consumers are willing to purchase.

• demand

• surplus

• scarcity

• supply

What is the money left over after a business pays all its expenses called?

• spendings

• earnings

• cost

• profit

A free enterprise system means __________.

• The government DOES NOT tell the people what they can make or sell.

• The government DOES tell the people what they can make or sell.

What is the situation when the demand for something is higher than the supply?

• demand

• scarcity

• supply

______ refers to obtaining money in the form of a loan or credit card.

• spending

• borrowing

• saving

• income

An example of a good is ______.

• swim lessons

• a lawn service

• a haircut

• a video game

An example of a service is ______.

• clothes

• food

• a haircut

• a video game

What do you call the added cost, you have to pay back, when you borrow money?

• savings

• interest

• surplus

What is one of the primary ways people can earn money?

• debt

• labor

• interest