Princ BMF (Cengage Chapter 1 Terms)

All the tools, equipment, and machinery used to produce goods or provide services.

• want

• need

• systemmatic decision making

• capitol

When demand is higher than the available resources

• want

• supply and demand

• need

• scarcity

An economy is which individuals are free to make their own economic decisions, also known as free or market enterprise

• market economy

• command economy

• factors of production

• economic system

Actions taken by two or more businesses attempting to attract the same customers.

• competition

• consumers

• customers

• capital

An economy in which the government makes all of the decisions for its citizens

• consumer

• market

• command

• capitalism

An economic system where the economic resources are privately owned by individuals rather than the government.

• profit

• supply and demand

• factors of production

• Capitalism

An economic principle that states the price of a product is determined by the relationship of the supply of the product and the demand for the product

• Product

• Systematic decision making

• Law of Supply and Demand

• Market

Organized way in which a nation chooses to use its resources to create goods and services.

• Market economy

• Economic System

• opportunity cost

• Command economy

Willingness and ability to start a new business.

• Business

• Entrepreneurship

• economics

• capital goods

Work performed by people in organizations, also called human resource

• Labor

• consumer

• Market

• wages