Economics Vocab

2. the way people earn and spend money
3. 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.
4. 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.
10. 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.
13. the government’s job is to protect property rights.
14. the amount the seller has to sell at a particular price
15. the money left over after all expenses are paid
17. the money received in payment for goods or services (rent, wages, interest)
20. the government’s right to take private property for public use as long as they pay a fair price to the owner

1. a person who buys goods and services
5. individuals own businesses and property rather than the government
6. the person who makes the goods
7. the things that people sell
8. the right to make decisions for an individual’s business or property
9. people or businesses offering goods for sale
11. an activity that someone is paid to perform
12. when different businesses compete for consumers’ money such as Walmart v. Target or Microsoft v. Apple.
16. what consumers are willing to buy at a given price
18. the name of Adam Smith’s idea of a free market economy
19. Scottish economist who came up with the idea of capitalism. He is known as the father of modern economics, wrote the Wealth of Nations, and influenced the Founding Fathers of the United States.