Principles Chapter 1

Anywhere a business exchange takes place

• Economics

• Market

• Product

• Factors of production

Money that a business has left over after all the expenses and costs of running a business are paid

• Profit

• Service

• Business

• Capitalism

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

• Customer

• Capitalism

• Service

• Business

Anything that can be bought and sold

• Market

• Service

• Product

• Profit

When demand is higher than the available resources

• Economics

• Customer

• Capitalism

• Scarcity

An individual or group who buys products

• Business

• Customer

• Service

• Market

An action or task that is performed, usually for a fee

• Product

• Business

• Service

• Market

A science that examines how goods and services are produced, sold and used

• Customer

• Market

• Capitalism

• Economics

A term for all activities involved in developing and exchanging products

• Profit

• Capitalism

• Business

• Service

Products are commonly known as

• Needs and wants

• Goods and services

• Factors of production

• Functions of business