Ch1+Review

=ENTREPRENEURSHIP PERIOD 3 = =**CHAPTER 1 REVIEW**=

How do entrepreneurs contribute to the economy? They supply more jobs for society. Entrepreneurs create new businesses, along with new job opportunities that stimulate the economy.

Summarize a local event. How has it contributed to the economy?

Tell about a local entrepreneur. How has their business contributed to the economy?

What are the 4 factors of production? Give examples. Land= natural resources Labor= human effort that produces the goods Entrepreneurship= ideas and decisions by the business owner Capitol= equipment tools and factory

Diminishing Marginal Utility The principle of establishing that price alone does not determine demand.

Elastic vs. Inelastic Enalastic:small change in price=significant change in demand. good with a wide range of luxury items. Inelastic: a change in price has little or no effect on demand, usually basic everyday elements.

Supply & Demand when demand goes up, supply goes up - This is not necessarily true. SOMEONE NEEDS TO FIX THIS. -Demand is the amount of goods and services that consumers are willing to spend their money on and supply is the amount of goods and services that the producers are willing to provide. -when price goes up demand usually goes down and when price goes up supply usually goes up.

Describe the Entrepreneurial Start-up Process There are 5 components to the start up process. It starts with the entrepreneur, the entrepreneur is the driving force behind the company. They are the person that creates and run the company. Next is the environment. The environment is everything that the entrepreneur can't control like taxes and good markets. The next part is the opportunity. The opportunity is an idea that has commercial value. The product only has value if people will buy it. The next part is the start up resources. The start up resources is everything you need to run a business like a facility, capitol, and skilled labor. The last part is the new venture organization is all the products, process, and services that are apart of a business. The entrepreneur can create value for their self, employees, and economy.