Basic Economic Concepts
Things that you do not have to have to survive, but would like to have and things you have to have in order to survive.
Want are wants and needs?
A lack of resources.
What is scarcity?
The total value of the goods and service produced in a country in a given year.
What is the gross domestic product?
The rules based on moral principles about how businesses and employees ought to conduct themselves.
What are business ethics?
Persistent, risk-taking, self-confident; restless, goal-oriented, action-oriented, responsible, self-demanding, creative, independent, inquisitive, enthusiastic.
What are the personal characteristics of entrepreneurs?
Business that is easy to open, owner makes all the decisions and keeps all the profits.
What are the advantages of a sole proprietorship?
The process or functions of planning, organizing, leading and controlling.
What is management?
Physical products and tasks that businesses perform for consumers?
What are goods and services?
Natural resources; labor resources; capital resources and entrpreneurial resources.
The general increase in the price of goods and services and the general decrease in the pice of goods and services.
What is inflation and deflation?
A conflict between self-interest and professional obligation.
What is a conflict of interest?
Being the boss, doing what you enjoy, having the opportunity to be creative and building and enterprise.
What are the rewards of entrepreneurship?
Problems occur when the owners do not get along or one of them decides to leave; also have unlimited legal and financial liability.
Shows how the firm is structured and who is in charge of whom.
What is an organizational chart?
Identifying the situation; Identifying possible courses of action; Determining the pros and cons; Making a decision, and Evaluating you decision.
What are steps in the decision making process?
The study of how individuals and groups of individuals strive to satisfy their needs and wants by making choices.
What is economics?
The total amount of money a government owes.
What is the national debt?
A shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions.
What is a sweatshop?
Sole proprietorship, partnerships and coprorations.
What are the three main types of business structures?
Holds a firm's owners responsible for no more than the capital that they have invested in it and the owner is completely responsible for the company's debts
What is limited and unlimited liability?
Organizational structure in which managers on one level are in charge of those beneath them.
What is line authority?
The money left over after a business has paid the cost of providing its goods and services.
What is profit?
A market economy; a command economy and a mixed economy.
What are the different types of economies?
Prosperity, recession, depression and recovery.
What are the four stages of the business cycle?
Responsibility to customers; responsibility to employees; responsibility to society and responsibility to creditors and owners.
What are four responsibilities businesses have?
Getting funds to start the business; being fully responsible for the business;feeling alone and insecure; uncertain income levels; and risk of losing their investment.
What are risks (challenges) of entrepreneurship?
What are types of businesses?
What are skills needed by managers?
A person who uses goods or services.
Who is a consumer?
The intersection of the supply and demand curve.
What is the equilibrium price?
The level of material comfort as measured by the goods and services that are available.
What is the standard of living?
The duty to do what is best for the good of society.
What is social responsibility?
Executive summary; management team plan; company description; product and service plan; vision and mission statements; industry overview; market analysis; marketing plan; operational plan; organizational plan; financial plan; growth plan; contingency plan; cover page, title page, table of contents and supporting documents.
What are parts of the business plan?
Production and procurement; marketing; management; finance and accounting.
What are the functions of business?
Earning more money, being respected; having more influence and authority than other employees; and having greater control over their time.
What are the advantages of being a manager?