Economics and Business B. Definition of terms P-Z theme 1

1. this is the total benefit of producing goods and services, calculated by adding together the private and external costs (6, 8)
5. sales revenue, ie total income generated by a business selling its goods and services over a period of time (8)
6. a situation where having more than one thing leads to having less of another (5, 3)
9. considers/measures the possibility that an event might not occur (5)
10. profit represented as a percentage of turnover (6, 6)

2. the part of the economy run for private profit and not controlled by the state. this area of the market is owned by individuals (7, 6)
3. a service or good that can be used in place of another (10)
4. the simplest form of business organisation that is woned and operated by an individual. The owner has unlimited liability (4, 6)
7. the owner of a business is responsible for all the debts of the company should it fail. this applies to sole traders and partnerships (9, 9)
8. the income of a business raised by selling its goods and services (7)

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