Basic Business
Lack of Resources
What is Scarcity
A person who uses goods and services.
What is a consumer?
Water, Food, Shelter
What are Needs
Another word for Labor Resources
What is Human Resources
Characteristic of a command economy
Government Control (the Government decides what is being made, how it is being made and who will be able to but the product).
Natural, labor, capital and entrepreneurial
What are the Factors of Production
What are goods?
Luxury items
What are Wants?
Provide an example of a capital resource
(Example) - A machine used to make molded plastic toys
This type of economy only exists in theory but not in a real world application.
What is the Market Economy?
These are people who makes the goods and provides the services
What is Human Resources
These are tasks that businesses perform for consumers
What are Services?
These are limited
What is Resources?
Two basic types of Economic Systems
What is the Market Economy and Command Economy?
Giving up the chance to use a resource for one thing instead of using another.
What is opportunity cost?
Is the money left over after a business has paid the cost of providing its goods and services
What is a profit?
The act of gathering and analyzing research.
What is Market Research?
Determining the Pro's and Con's
This is what needs to be done before making a Decision
The study of people satisfying their needs and wants by making choices.
What is Economics?
The most important in determining the price of a product or service?
What is Supply and Demand?
This is the contest between businesses to win customers.
What is competition?
Identify the situation, Identify the possible course of action, determine the pros and cons, make a decision, and evaluate are all part of this process.
What is the decision-making process?
What is a Business?
Which is most likely to provide from society's changing wants and needs?
An Entrepreneur (people start businesses with new ideas and innovation)
Demand Falls or Supply Increases