Chapter 1
Things required to live
need
all goods and services produced in one year
GDP
countrys can produces a good for much cheaper than anyone else
Absolute advantage
duty of company to contribute to the community
Social responsibility
someone who takes a risk to start a business
entrepreneurship
creating communicating and delivering value
marketing
things that add pleasure to our lives
want
How we compare GDP
GDP per capita
country specializes in producing one good making them much more efficient than other countries
comparative advantage
saving scarce resources
Conservation
a system that allows a person to act like a business starter within an exsiting business
intraprenuership
where the product is sold
place
products you purchase
goods
salaries income wages
personal income
items brought in from another country
import
principles of morals
Ethics
money provided from investors
product
activities consumed at time of purchase
y=c +I+G+(X-M)
GDP formula
items sold to another country
export
agreement to exchange goods or services for money
contract
invention or creation thats brand new
innovation
what is exchanged for the product
price
natural
human
capitol
economic resources
gdp increases
wages are good
people are employed
prosperity
difference between import and exports
balance of trade
gives the inventor the sole right to produce for 20 years
patent
increases the usefulness of an existing product
improvement
ways to allow the consumer to know about your product
promotion
not having enough resources to satisfy every need or want
scarcity
demand decreases
unemployment raises
gdp slows for 2 quaters
recession
the rate and value of currency in one country compared to another
exchange rate
protects creative work
copy right
independent business with less than 500 employees
small business
determining the best way to locate obtain and use the product
distribution
resources are owned by the government
command economy
gdp falls quickly
weak consumer sales
prolonged unemployment
depression
tax on imports
Tariff
one business is the sole provider of a good or service
monopoly
financing for less than a year
short term
buying a product because it makes you sad happy or other
emotional motive
where the supply line meets the demand line
equilibrium point
unemployment decreases
GDP raises
can be slow or fast
recovery
gov stops trade with another country
embargoes
laws prevent unfair business practice
antitrust laws
written proposal for a business
business plan
entended people to buy your product