Vocabulary
Define products
Things that are made and traded
Explain what a most favored choice is
The option you really want, and decide to choose
Name the three types of businesses we have learned about.
Individual ownership, Partnership, and Corporations
Define Natural Resources
Valuable things in nature that people use
What is Battle Creek known for?
Cereal
Define profit
The amount of money left over after paying all the costs
You have $10. Your mom tells you that you can choose between spending it on a book, or a new toy. You choose a new toy.
What is your most favored choice?
Define Individual Ownership
A business that is owned and operated by one person.
Define Human Capital
People who work in jobs to produce goods and services
What TWO things does Traverse City Specialize in?
Cherries, and tourism
Define scarcity
Not being able to have all of the products and services a person wants
You have $10. Your mom tells you that you can choose between spending it on a book, or a new toy. You choose a new toy.
What is your opportunity cost?
Define partnership
A business that is owned and operated by two people
Define Capital Equipment
Tools, machines, and buildings that are used to produce other goods and services
What area of Michigan specializes in aautomobiles?
Detroit
Define Opportunity Cost
You have $8.00. You can rent a movie, buy a new hat, or buy a kitten. You choose to rent a movie. Explain what your most favored choice is AND what the opportunity cost is.
Most favored choice: rent a movie
Opportunity cost: A new hat, and a kitten
Define Corporation
A business that is owned by several people and operated by managers
Explain 4 natural resources that are needed to grow corn.
Answer may include: seeds, oil, water, sunlight
What human capital is needed to grow cherries?
Cherry pickers, farmers
What is the difference between an import and exports?
Import is a product brought in from another country while an export is a product sold to another country
Provide a scenario where you are choosing between three items. Provide your most favored choice, and explain what your opportunity cost is.
Answer must included most favored choice and opportunity cost.
Sally and Joe have a business where they make book marks. Both of them work together to create these book marks. They sell them for $2 each, and split the money equally. What type of business is this?
Partnership
Explain the capital equipment needed to make cupcakes
Answers include: mixer, oven, spoon, cupcake pan
Johnny started a business where he makes and sells lemonade. He uses his own money to buy the materials needed. Then, he keeps all of the money he makes. What type of business does Johnny have?
Individual ownership