Chapter 1.1 Vocabulary & Notes

 An individual who undertakes the creation, organization, and ownership of a business

 A new business undertaking that involves risk

 The process of recognizing an opportunity, testing the market and gathering resources necessary to go into business

 Having an entrepreneurial mindset, thinking of how to create a product or service that is needed by customers  To profit from as well

 The study of how people choose to allocate scarce resources to fulfill their unlimited wants ◦ How much is being bought by people and what are they willing to spend?

 System that people have the right to make economic choices ◦ You buy whatever you want ◦ You are free to open a business ◦ Promotes competition between companies

 The amount of money that is left after all expenses have been deducted while operating a business

 The amount of competition in an industry ◦ How many different businesses are selling a particular product or service ◦ Example: cellular phone service ◦ At&t, Verizon, Sprint, T-Mobile

 A market structure that has only one seller in an industry ◦ One company dominates the market and controls supply and price

 Name, Date, 1 paragraph  Pretend you won a shopping spree at the mall, what are your top 3-5 purchases?  Previous entrepreneurial experience ◦ Grass cutting ◦ Lemonade stand ◦ Fundraising

 Tangible, physical products that consumers purchase

 Intangible, nonphysical products that consumers purchase

 A basic requirement for survival ◦ Food ◦ Water ◦ Shelter

 Something not absolutely necessary for survival, but you would like to have it

 The resources businesses use to produce the goods and services that people want to buy  4 Factors: ◦ Land ◦ Labor ◦ Capital ◦ Entrepreneurship

 Occurs when demand exceeds supply ◦ When you want to buy something but it is not available

 The quantity of goods and services that consumers are willing and able to buy

 That amount of goods and/or services that producers are willing to provide

 A point at which consumers buy all of a product that is supplied

 The total market value of all goods and services produced by a given nation over a certain time period

 The general expansion and contraction that the economy goes through