Entrepreneurship Vocabulary

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scarcity
the difference between demand and supply; limited sources
entrepreneur
an individual who undertakes the creation, organization, and ownership of a business
factors of production
the resources businesses use to produce the goods and services that people want
venture
a new business undertaking that involves risk
market structure
the nature and degree of competition among businesses operating in the same industry; market structure affects market price
diminishing marginal utility
the effect or law that establishes that price alone does not determine demand, and other factors, such as income, taste, and the amount of the product already owned, play a role as well
want
something that you do not have to have for survival, but would like to have
oligopoly
a market structure in which there are just a few competing firms
entrepreneurship
the process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business
profit
money that is left over after all expenses of running a business have been deducted from the income
inelastic demand
situations in which a change in price has little or no effect on demand for products
monopoly
a market structure in which a particular commodity has only one seller
gross domestic product (GDP)
the total market value of all goods and services produced by workers and capital within a nation during a given period
free enterprise system
an economic system in which people have important rights: to make economic choices of what products to buy, to own private property, and to choose to start a business and compete with other businesses
elastic demand
situations in which a change in price creates a change in demand
services
intangible (nonphysical) products that satisfy consumers' wants and needs
need
a basic requirement for survival
equilibrium
the point at which consumers buy all of a product that is supplied. at this point, there is neither a surplus nor a shortage
economics
the study of how people allocate scarce resources to fulfill their unlimited wants
demand
the quantity of goods or services that consumers are willing and able to buy at various prices
goods
tangible (or physical) products of our economic system that satisfy consumers' wants and needs
supply
the amount of goods or services that producers are willing to provide
business cycle
the general pattern of expansion and contraction that the economy goes through