23 terms

Small Business and Entrepreneurship

STUDY
PLAY

Terms in this set (...)

Entrepreneur
an individual who undertakes the creation, organization, and ownership of a business
Venture
a new business undertaking that involves risk
Economics
the study of how people allocate scarce resources to fulfill their unlimited wants
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 complete with other businesses
Profit
money that is left over after all expenses of running a business have been deducted from the income
Market Structure
the nature and degree of competition among businesses operating in the same industry; market structure affects market price
Monopoly
a market structure in which a particular commodity has only one seller
Oligopoly
a market structure in which there are just a few competing firms
Basic concepts of economics
goods and services, factors of production, supply and demand theory and scarcity
Goods
tangible (or physical) products of our economic system that satisfy consumers' wants and needs
Services
intangible (nonphysical) products that satisfy consumers' wants and needs
Need
a basic requirement for survival
Want
something that you do not have to have for survival, but would like to have
Factors of Production
the resources businesses use to produce the goods and services that people want
Scarcity
the difference between demand and supply; limited resources
Demand
the quantity of goods or services that consumers are willing and able to buy at various prices
Elastic Demand
situations in which a change in price creates a change in demand
Inelastic Demand
situations in which a change in price has little or no effect on the demand for products
Diminishing Marginal Utility
the effect or law that establishes that price alone does not determine demand, and that other factors, such as income, taste, and the amount of product already owned, play a role as well
Supply
the amount of goods or services that producers are willing to provide
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
Gross Domestic Product
the total market value of the goods and services produced by workers and capital within a nation during a given period
Business Cycle
the general pattern of expansion and contraction that the economy goes through