Chapter 1: Basic Economic Concepts

Business

Any commercial activity that seeks profit by providing goods and services to others in exchange for money

Competition

The contest between businesses to win customers

Consumer

A person who uses goods or services

Goods

Physical products

Market research

The act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market

Market

A group of people who exchange goods and services

Needs

Things that you must have in order to survive

Profit

The money left over after a business has paid the cost of providing its goods and services

Resources

Items that people can use to make or obtain what they need or want

Services

Tasks that businesses perform for consumers or tasks that people or machines do for a price

Wants

Things that you do not have to have to survive but would like to have