Entrepreneurship

Inflation

A general increase in price an fall in the purchasing value of money.

Substitute goods

A product that can replace another good to satisfy a particular want is known as a substitute good. When the price of a substitute good increases, the demand for the original good increases.

Factors of demand

An individual's demand for a particular product is affected by many factors. These factors include consumer incomes, consumer preferences and tastes, the prices of related goods, consumers' anticipation of price changes, and so on.

Complementary goods

Complementary goods are products that accompany other goods. When the price of a product changes, it also affects the price of its complementary good, and vice versa.

Fiscal Policy

Fiscal policy consist of the government's decision on taxes, subsides, and spends.

opportunity cost

Every trade-off involves an opportunity cost. If you choose alternative A, you miss the opportunities you had with alternative B. Opportunity costs can be of a personal as well as a financial nature

Gross Domestic Product (GDP)

GDP is a total value of goods produced and services provided in a country in one year.

Trade-off

In economics, people can choose between scarce resources. This choice is called making tradeoffs. In a market society, people choose which tradeoffs to make based on their needs.

Importance of Microeconomics

Microeconomics is important for entrepreneurship because it allows decisions making based off: Number of employees. Level of maintain. Volume of good and service.

Monetary Policy

Monetary policies refers to decisions that government and central bank makes about money supply circulating in the economy .

Price elasticity

Price elasticity measures the effect of any change in the price, or in the quantity supplied, when the demand for a particular product or service changes

Law of Demand

The law of demand states that, as prices increase, the demand for products decrease.

Law of Supply

The law of supply states that, as prices increases suppliers' quantities also increase . This increases the number of products available for sale (the quantity supplied).

Unemployment Rate

The unemployment rate refers to percentage of the labor force ( that is willing and able to work ) seeking paid jobs. An unemployment rate less than 10 percent is considered acceptable in the United States.

Microeconomics

The part of economics concerned with single factors and the effects of individual decisions . Microeconomics is the study of economic decisions that people and companies make about ways to allocate their income to purchase resources. Prices play a primary role in these decisions. Microeconomic decisions relate to the financial decisions of a household, an individual company, or any other organization.

Factors of supply

The supply of a product is affected by factors such as the cost of inputs, the state of technology, overall production cost, taxes, and so on.

Aggregate Demand

The total quantity of goods demanded in an economic system.

What is the relevance of microeconomics to an entrepreneur? How does the law of demand affect an entrepreneur's decisions?

Well microeconomics is a small business that a entrepreneur had created and that law of demand comes into play when the pricing goes up the need for more products goes down

Economics

the branch of knowledge concerned with the production, consumption, and transfer of wealth. a social science that deals with the human response to scarce resources and the consumption and management of resources to maximize satisfaction. Economics has two branches, which are macroeconomics and microeconomics. The study of economics seeks to solve the problem of maximizing the utility of earth's scarce resources so that they are used most efficiently.

Macroeconomics

the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

Scarcity

the state of being scarce or in shot supply; shortage.