24 terms

Entrepreneurship (Chapter 1)

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Terms in this set (...)

Entrepreneur
is an individual who undertakes the creation, organization, and ownership of a business
Venture
is a new business undertaking that involves risk
Entrepreneurship
is the process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business.
Entrepreneurial
means acting like an entrepreneur or having an entrepreneurial mind-set
Economics
is the study of how people choose to allocate scarce resources to fulfill their unlimited wants.
Free Enterprise System
people have an important right to make economic choices
Profit
is money that is left after all expenses of running a business have been deducted from the income
Market Structure
refers to the nature and degree of competition among business operating in the same industry.
Monopoly
is a market structure in which a particular commodity has only one seller who has control over supply and can exert nearly total control over prices.
Oligopoly
is a market structure in which there are just a few competing firms.
Goods
are tangible (or physical) products.
Services
are intangible (nonphysical) products
Need
is a basic requirement for survival, such as food and shelter.
Want
is something that you do not have to have for survival, but would like to have
Factors of production
are the resources businesses use to produce the goods and services that people want
Scarcity
occurs when demand exceeds supply
Demand
is the quantity of goods or services that consumers are willing and able to buy
Elastic Demand
refers to the situations in which a change in price creates a change in demand
Inelastic demand
refers to situations in which a change in price has very little effect on demand for products
Diminishing Marginal Utility
when a product's price is low, people won't keep buying it indefinitely.
Supply
the amount of a good or service that produces are willing to provide
Equilibrium
is the point at which consumers buy all of a product that is supplied
Gross Domestic Product
is the total market values of goods and services produced by workers and capital within a nation during a given period
Business Cycle
is the general pattern of expansion and contraction that the economy goes through

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