Ch1+Review

=ENTREPRENEURSHIP PERIOD 1 := =**CHAPTER 1 REVIEW**=

How do entrepreneurs contribute to the economy? The start up new businesses - True but how does that help the economy? Start up new businesses to generate jobs, increase competition, increase productivity, and overall helps the economic growth. 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: All natural resources such as paper  Labor: Human capital such as workers   Entrepreneurship: Ideas & decisions that come from the entrepreneur   Capital: The equipment, factories, and tools used such as a warehouse to produce the goods.

Diminishing Marginal Utility

Elastic vs. Inelastic Elastic products that fluctuates depending on the price of the item. An inelastic product is one that people will buy no matter the price. An example of an elastic product is a Burberry purse and an example of an inelastic product is education.

Supply & Demand Demand: quantity of goods & services that consumers are willing & able to buy. Supply: amount of a good or service that producers are willing to provide. -price is inversly related to demand  -producers are also willing to supply products in greater amounts when prices are high

Describe the Entrepreneurial Start-up Process