2.03-2.05 Modified test Review

________________: the rivalry between two or more businesses to attract scarce customer dollars.

• Competition

• economic risks

• profit motive

________________: amount of income earned by a business prior to paying income taxes.

• income

• cost of goods

• transfer

________________: the money that a business spends.

• expenses

• gross profit

• income

________________: a business that employs 500 or fewer people.

• Private Enterprise/free enterprise

• small business

• entrepreneur

________________: freedom of private businesses to operate in a competitive manner for profit, without government control.

• private enterprise/free enterprise

• small business

• entrepreneur

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

• market economy

• command economy

• socialism

________________: an economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace.

• market economy

• traditional economy

• command economy

________________: an economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace.

• market economy

• traditional economy

• command economy

________________: an economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace.

• economic risks

• natural risks

• human risks

________________: monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid (income - expense = P).

• income

• operating expenses

• profit