What Does it Mean to be an Entrepreneur?
What is an entrepreneur?
A producer that creates goods and services that they think will be purchased
Is a TV a good or service?
good
Is garbage a good or service?
neither
A good is a...
physical item that results from production
Is a plumber's actions a good or service?
service
Using an oven to bake bread would be an example of what resource?
Capital resource
Money is important to our economy because it:
Helps people to trade
A baker baking the bread would be an example of what resource?
Human resource
Alice, Sam, and Susan decided to earn money by making and selling cookies. To make the cookies, they specialized by using an assembly line. Alice mixed the dough, Sam cut the cookies, and Susan baked them. They specialized because they wanted to
Make more cookies
The water used in the ingredients for the bread would be an example of what resource?
Natural resource
A service is a...
Nonphysical result of production, that is consumed as soon as it is produced
What is a problem when making cookies by specializing on an assembly line?
One worker or broken machine can slow all the production
To be successful a business must
Produce goods and services that consumers want
Natural resources, human resources, and capital resources are:
Productive resources used to create a good or service
What is a consumer?
Someone who purchases an item that is created
Opportunity cost means...
The best thing you give up when you choose something (the difference in cost of second choice)
With her $2.00 Sally wants to buy one of these three things: a book, a bag of candy, or a belt. Her first choice is the candy, and she buys that. The book was her second choice, and the belt was her third choice. What is the opportunity cost of her choice to buy the candy
The book
Mr. Johnson runs a business. He can produce chairs or windows. He decides to produce chairs. The opportunity cost of producing the chairs is
The windows he now cannot produce
When the demand is extremely high for a product, what does that usually mean for the supply and price?
There is not enough "supply" and the price will raise
In economics, something is scarce when:
There is not enough for everyone to have all they want
