Economics Vocabulary

2. the person who makes the goods
4. economy (communism)- an economic system where property and business are owned by the government. The government makes choices about producing and pricing. The consumers have no choice.
5. the name of Adam Smith’s idea of a free market economy
8. an activity that someone is paid to perform
12. rights- the right to make decisions for an individual’s business or property
13. of government- the government’s job is to protect property rights.
14. people or businesses offering goods for sale
15. what consumers are willing to buy at a given price
16. when different businesses compete for consumers’ money such as Walmart v. Target or Microsoft v. Apple.
17. economy- an economic system where businesses and property are privately owned. The price and amount of goods traded are based on supply and demand and has little government regulation.

1. the money received in payment for goods or services (rent, wages, interest)
2. the things that people sell
3. or buyer- a person who buys goods and services
6. property- individuals own businesses and property rather than the government
7. the founder of a business. Someone who assumes the risk of organizing resources to produce goods and services. Someone who sees an opportunity to make money and takes it.
8. the amount the seller has to sell at a particular price
9. domain- the government’s right to take private property for public use as long as they pay a fair price to the owner
10. the money left over after all expenses are paid
11. the way people earn and spend money