Business: an organization that produces or sells goods or services in an effort to make profit. Profit: what remains after business expenses are subtracted from its revenues. It is also the intention to get more. Deficit is when a business spends more than it gains. Markets: a mechanism for exchange between buyers and sellers for a particular good or service. Command or planned economies: government control or own all of the factors of production, therefore they make most or all decisions. Market economy: individuals own or control factors of production, individuals make most or all decisions. Communist economy: government controls 100% of economic decisions. Socialist economy: government controls the majority of the factors of production, so it makes most of the economic decisions. Capitalist economy: individuals own all factors of productions, they make 100% of the economic decisions. Mixed economy: individuals control the majority of factors of production, and make most economic decisions.