Intro to Business Unit 1

producers*

individuals and organizations that determine what products and services will be available for sale*

Mixed Economy*

combines elements of command and market economy*

marketprice*

the point where supply and demand are equal*

entrepreneur*

risk takers who use resources in an entirely new way to create a new product or service*

economic system*

a nations plan for answering the thress economic questions*

Command Economy*

resources are owned and controlled by the government*

Dollar Voting**

consumers choices influence company’s production decisions**

products that consumers buy will tend to be produced in the future.

demand*

the quantity of a product or service that consumers are willing and able to buy at a particular place*

supply*

the quantity of a product or service that businesses are willing and able to provide*

5 Features of the US Market Economy

1. Private Enterprise

2. Private Property

3. Profit

4. Competition

5. Freedom of choice

4 Economic Systems**

1. Command

2. Market

3. Traditional

4. Mixed**

3 Economic Questions**

1. What to produce?

2. How to produce?

3. What needs and wants to satisfy?**

Decision Maing Strategy

Define a problem

Identify choices

Evaluate choices

Choose one

Act on your choice

Review your decision

trade off

when you decide on one alternative, you give up something else

opportunity cost*

the value of the next best alternative that you did not choose (what is being given up?*

scarcity*

the conflict between unlimited wants with limited resources*

Factors of Production/Economic Resources**

the means through which goods and services are produced**

service*

activities that are consumes at the same time they are produced*

goods

things that you can see and touch (products)

wants*

things that add comfort and pleasure to your life*

needs

things that are required in order to live