What is a Business
What is the main purpose of a business?
To satify peoples needs & wants in the best way possible while earning a profit.
What are the three types of Economic Resources?
Natural, Human, & Capital
What is the difference between A good and a Service
Goods are physical products.
Services are activities that are consumed at the same time they are produced
What is the difference between A Need & Want
Needs are things people need to survivce and wants are things that make people's standard of living better.
What is Inflation?
−Inflation is an increase in the general level of prices.
What is Opportunity cost?
the value of the next-best alternative that you were not able to choose
What is Scarcity and why does it exsist?
not having enough resources to satisfy every need
What are Economic Resources.
things used to produce goods and services
Needs and wants are _______
Unlimited
What are Imports & Exports?
−Importing is bringing items from other countries into a country.
−Exporting is selling goods and services to other countries.
What are the 3 Basic Econmic Questions?
•What to Produce?
•How to Produce?
•What Needs and Wants to Satisfy?
What does GDP stand for, and what does it mean?
Gross domestic product or GDP is the total value of all final goods and services produced in a country during one year.
The means through which goods and services are produced are called
economic resources.
What is the difference between a Tangible & Intangible Product
Intangible products are things you experience, or have provided for you.
What does Infrastructure refer to?
a nation’s transportation, communication, and utility systems.
What is the Basic Econmic Problem?
−The mismatch of unlimited wants and needs and limited economic resources
Name all Four Types of Economic Systems:
Command economy
Market economy
Traditional economy
Mixed economy
What is a market price?
the point where supply and demand are equal; it is where the supply curve and demand curve intersect.
What is the difference between Supply & Demand?
−Demand is the quantity of a good or service that consumers are willing and able to buy.
−Supply is the quantity of a good or service that businesses are willing and able to provide.
What is Social responsibility?
refers to the duty of a business to contribute to the well-being of a community.
Name all four Stages of the Business Cycle:
Prosperity
Recession
Depression
Recovery
What type of economic system is the U.S based off and what is the definition and elements of that system?
•Capitalism refers to the private ownership of economic resources by individuals, rather than by the government.
•Private Property
•Freedom of Choice
•Profit
Competition
How does an Entrepreneur decide to produce a good or service?
They use their skills and talents to find a new, unique, and creative way to satisfy needs and wants of a consumer.
Is an iPhone a Need or a Want?
It is a want.
You do need a form of communication, but that can come in the form of a cheap flip phone.
You want an iPhone to use internet, play games, FaceTime etc.
Which of these is NOT an important principle of the U.S. economic system?
What are Traditions & Customs