Economic Principles
High production of G&S’s, relatively low unemployment levels, prices high/new businesses open, wages are strong, money spent on property, lots of imported goods, world economic partners prospering
What is the PEAK phase of the business cycle?
A business owned by two or more people
What is a Partnership?
the actions of people—and especially of government—the always have effects that are unanticipated or unintended.
What is the term "unintended consequences".
Any time an individual does not have to suffer the full economic consequences of a risk
What is a moral hazard?
Smart, Measurable, Achievable, Relevant, Timely
What are SMART goals?
A person who recognizes a business opportunity as they organize, manage and assume the risks of starting and operating a business.
Who is an Entrepreneur?
The leftover funds after a business has paid all of the costs they incur through trade.
What is profit?
A “luxury” item you don’t need for survival (one word)
What is a Want?
Something you must have in order to survive (one word)
What is a Need?
Individuals who own their own business.
Who is a Sole Proprietor?
Any commercial activity that seeks profit by providing goods or services to others in exchange for money (barter?)
What is a Business?
Physical products which are sold to consumers AND tasks businesses perform for customers for a fee (two words)
What are Goods & Services?
Persistent, Risk-taking, Self-confident, Restless, Goal-oriented, Action-oriented, Responsible, Self-demanding, Creative, Independent, Inquisitive, Enthusiastic (a
What are Characteristics of an Entrepreneur?
Considering types of businesses, this has limited liability.
What is a Corporation?
An extended economic recession. High unemployment. Wages drop.
What is the Trough phase of the business cycle?
A decline in economic activity, wages drop, higher unemployment, business start to produce less.
What is the Contraction phase of the business cycle?
The marketing statement you use to sell your products and services to prospective customers. You also were supposed to put one of these in your elevator speech.
What is a Unique Selling Proposition (USP)?
Production starts to increase, new businesses open which leads to more jobs & increased production
What is the expansion phase?
Identify the problem, gather information, consider the consequences, choose a path, evaluate results (three words)
What is the Decision Making Process?
The satisfaction received from consuming a good or service - a measure of fun.
What is utility?
Thinking about social media - thew relationship between two individuals in which one, the organization, has the control over you, the individual.
What is Asymmetrical power?
Used to explain to investors and/or banks to gain start-up funds. Basically, what you're creating this year.
What is a Business Plan?
What percent of the average student in this classroom is spent on social media/playing video games?
I'll accept 23 - 26%
A market economy is NOT static. It’s Dynamic. Economies have ups and downs. Over time, these form patterns of repetitive occurrences.
What is the Business Cycle? (Economic Cycle)
Oftentimes, the best way to start a business is to...
Identify a problem.