Free Enterprise System Vocabulary

A free enterprise system means __________.

• The government regulates all business activities.

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

• All businesses must be owned by the government.

• People can only sell goods that the government approves.

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

• demand

• supply

• price

• quantity

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

• interest

• principal

• collateral

• equity

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

• supply

• demand

• price

• cost

Bob is mowing lawns this summer. He is paid $20 per lawn. This is an example of _____.

• spending

• earning

• investing

• saving

What is the term for the money that individuals or businesses owe to others?

• credit

• debt

• equity

• investment

A plan for saving and spending money is called a _______.

• budget

• savings account

• investment portfolio

• financial statement

Wendy went to the mall and bought a Squishmallow. This is an example of ______.

• saving

• investing

• spending

• borrowing

An example of a good is ______.

• a video game

• a broken toy

• a dull book

• a boring lecture

What do you call the amount of money that is earned as a result of labor?

• salary

• revenue

• income

• profit