1. 2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt Free Enterprise System Competition Role of Government Supply and Demand Theory General Information

2. What businesses do when their profits begin to decline.

3. What is lay off employees.

4. The potential for loss or failure.

5. What is risk?

6. The money earned from conducting business after all costs and expenses have been paid

7. What is Profit?

8. The system that encourages individuals to start and operate their own businesses. Is also called our economic system.

9. What is the free enterprise system?

10. Three of the freedoms of the free enterprise system.

11. What are owning things, Taking risks, Making profits, Competition?

12. The struggle between companies for customers.

13. What is competition?

14. This type of competition focuses on the sale price of an product.

15. What is price Competition?

16. This type of business has exclusive control over a product or the means to produce it.

17. What is a monopoly?

18. The type of competition where businesses compete based on factors other than price.

19. What is Nonprice Competition?

20. Two things that competition forces businesses to do.

21. What is produce better-quality goods, develop new products, have a wider selection of products?

22. The government operates the Post Office, Amtrak, and the TVA in this role.

23. What is the government’s role as a competitor?

24. List two services that the government provides to its citizens.

25. What are military, police, fire protection, free public education, JTPA, roads and bridges, public library, social welfare?

26. The government provides these laws and regulations to protect our property rights.

27. What are patents, copyrights, and trademarks?

28. The agency that protects against unsafe food and drugs

29. The Food and Drug Administration

30. The people who decide which products will be produced and which companies will stay in business.

31. Who is the consumer?

32. When demand exceeds supply this occurs.

33. What is a shortage ?

34. When the amount of product supplied is equal to the amount of product demanded.

35. What is the equilibrium point?

36. This occurs when supply exceeds demand.

37. What is a surplus?

38. The people who decide the prices of goods and services sold in the marketplace.

39. What is the consumer?

40. When shortages occur, businesses many times do this to their prices of their merchandise.

41. What is raise prices of the merchandise?

42. The willingness and ability to buy products.

43. What is demand?

44. The amount of goods producers are willing to make and sell.

45. What is supply?

46. This agency helps to maintain the value of residential real estate.

47. What is the Environmental Protection Agency?

48. This company provides counseling and educational materials to prospective business owners.

49. What is the Small Business Administration (SBA)?

50. Two economic benefits of successful firms.

51. What are hire more people, pay employees well, investors earn money from investors, government makes more money from taxation?