Entrepreneurs People who start businesses in a free enterprise system.
Types of Economic Activities Industries can be divided into four groups: Primary Industries Secondary Industries Tertiary Industries Quaternary Industries
Primary Industries Primary Industries involve natural resources or raw materials. Examples of primary industries are: farming, mining, logging
Secondary Industries Secondary industries change raw materials into finished products. Examples are: sawmills making lumber, making copper wire, making orange juice.
Tertiary Industries Tertiary industries handle goods that are ready to be sold to consumers. Stores, banks, insurance companies, and government agencies are examples of tertiary industries.
Quaternary Industry Quaternary industries are those parts of the economy concerned with research, the gathering of information and administration. They are a specialized part of the tertiary sector of the economy.
Economic Development Countries can be divided into two categories: Developed – Countries that have strong primary, secondary, tertiary, and quaternary industries. These countries have citizens who have high literacy rates, large urban populations, have good health care systems, and access to telecommunication systems.
Economic Development Developing Countries – These are countries moving toward development. They often have large rural populations or many people who work in primary industries. They have low literacy rates, poor health care systems, and low rates of employment.
What’s a Profit? Profit is the money a business has left after it has paid all its costs. Your goal at Enterprise City will be to pay off your bank loan and make a profit.
What are Costs? Businesses must spend money on certain things. Taxes Rent Advertising Supplies
What’s Supply and Demand? Supply is how much of a product is available. Demand is the amount of a product that people are willing to buy. If LOTS of people want it, you can charge a higher price If NOT MANY people want it, you’ll need to lower the price.
Benefits of Free Enterprise: Choice You, the consumer, can choose from many different kinds of things to buy.
Benefits of Free Enterprise: Choice Companies are free to choose the goods they wish to make.
Benefits of Free Enterprise: Profit and High Wages Employees can seek the highest paying job for their work and entrepreneurs pursue ideas to make the most profit.
Benefits of Free Enterprise: Control People rather than the government control the factors of production.
Benefits of Free Enterprise: Progress The free enterprise system inspires people to invent things. Remember Thomas Edison? His studio produced the first talking motion picture in 1912.
Scarcity The availability of certain factors of production can affect international trade and interdependence among societies.
Scarcity Think of the availability of oil. Oil is a natural resource that is used in the production of many products.
Good Luck! We hope you’ll make the most of your opportunities at Enterprise City!