1.
competition: the effort of two or more people acting independently to get business by offering the best deal
2.
corporation: a business owned by shareholders, also called stock holders, who own the rights to the company's profits but face only limited liability for the company's debts and losses
3.
demand: the desire to have some good or service and the ability to pay for it
4.
entrepreneur: risk-taking individual in search of profits; one of four factors of production
5.
free enterprise: another name for capitalism, an economic system based on private ownership of productive resources
6.
goods: physical objects, such as food,clothing, and furniture, that can be purchased
7.
labor: all the human time, effort, and talent used to produce goods and services
8.
needs: things such as food, clothing, and shelter that are necessary for survival
9.
opportunity cost: the value of something that is given up by choosing one alternative over another
10.
partnership: a business co-owned by two or more people, or "partners", who agree on how responsibilities, profits, and losses should be divided
11.
profit: the financial gain a seller makes from a business transaction; the money left over after the costs of producing a product are subtracted from the income gained by selling the product
12.
resources: the collective wealth of a country or its meaning of producing wealth
13.
risk: the possibility for loss on an investment
14.
scarcity: a situation that exists when there are not enough resources to meet human wants
15.
services: work that one person does for another for payment
16.
sole proprietor: a business owned and controlled by one person
17.
stock: shares of ownership in a corporation
18.
supply: the willingness and ability of a producer to produce and sell a product
19.
trade off: the alternative someone gives up when making an economic choice
20.
wants: desires that can be satisfied by consuming a good or device
