Entrepreneurship Ch. 2 Study Guide

What 2 countries use a mixed economy?

Soviet Union and China.

______ occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.

Specialization

Which types of market structures are easy for a business to enter the market?

perfect competition and monopolistic competition

How do entrepreneurs contribute toward the economy?

As business owners, entrepreneurs plan an important role in supplying goods and services to meet the demands of consumers. They continually look for on the needs are better ones to satisfy consumer's needs and wants. These resources and their knowledge of markets and business to produce goods and services efficiently to make consumers needs and wants. Entrepreneurs invest in their communities by contributing to the local economy and providing jobs. Many entrepreneurs create products to change the way people live in conduct business.

_______ forces a business to improve products, keep costs low, provide good customer service, and search for new ideas so that consumers will choose its products or services.

Competition

_____ is the quantity of a good or service that consumers are willing to buy at a given price.

Demand

What is the difference between economic wants and non economic wants?

Economic wants involve a desire for material goods and services. Non economic wants are the desire for non material things.

What are some examples of fixed and variable costs?

Fixed costs are costs that must be paid regardless of how much of a good or service is produced. Fixed costs are also called sunk costs. Variable costs are costs that go up and down depending on the quantity of good or service produced.

Can any type of economy have enough resources to meet all the needs and wants of people?

In every economy, there are limited resources to produce goods and services.

What type of economy does entrepreneurship thrive in?

In market economies.

Self-Actualization: realization of your potential Esteem: respect and recognition Social: friends, love, belonging Security: physical safety and economic security Physiological: food, sleep, water, shelter, air

Maslow's Hierarchy of Needs

What is the difference between a need and a want?

Needs are things that you must have in order to survive. Wants are those things that you think you must have in order to be satisfied.

Know the 4 functions of business (PMMF)

Production, marketing, management, and finance.

Explain the difference between goods and services

Services are activities that are consumed as they are produced. Goods are products you can purchase.

What are some examples of capital resources? (BES)

buildings, equipment, and supplies.

In what type of economy do businesses and individuals decide what, how, and for whom to produce?

command economy

What are the 4 different types of economies? (CMTM)

command economy, market economy, traditional economy, and mixed economy.

Which business function is concerned with determining the amount of capital needed and how it will be obtained?

finance

What are some examples of physiological needs?

food, sleep, water, shelter, etc.

A _____ economy often results when a country shifts away from a command economy toward a market economy but still has a government involved in the marketplace.

mixed

What exists when there is 1 provider of a good or service?

monopoly

What are some examples of needs and wants?

needs: food, sleep, shelter, etc. wants: clothing, housing, cars, sunshine, fresh air, exercise, happiness, etc.

When a market is dominated by a small number of businesses that gain the majority of total sales revenue.

oligopoly

List the 4 principles the US economic system (PFPC)

private property, freedom of choice, profit, and competition.

What does the marketing mix consist of ? (PDPP)

product, distribution, price, and promotion.