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