| A | B |
|---|
| entrepreneur | individual who undertakes the creation, organization, and ownership of a business |
| venture | new business undertaking that involves risk |
| entrepreneurship | he process of recognizing an opportunity, testing it in the market, and gathering resources |
| entrepreneurial | acting like an entrepreneur |
| economics | study of how people choose to allocate scarce resources |
| free enterprise system | people have right to make economic choices |
| profit | money that is left after all expenses are subtracted from all income |
| market structure | refers to the nature & degree of competition between businesses in the same industry |
| monopoly | market structure where there is only one seller of something |
| oligopoly | market structure where there are only a few competing firms |
| goods | tangible or physical products |
| services | intangible or nonphysical products |
| need | a basic requirement you need to survive |
| want | something that you do not have to have to survive |
| factors of production | resources businesses use to produce goods & services |
| scarcity | when demand exceeds supply |
| demand | quantity of goods/service consumers are willing to buy |
| supply | the amount of goods/services businesses are willing to sell |
| elastic demand | a change in price creates a change in demand |
| inelastic demand | a change in price has little effect on deman |
| diminishing marginal utility | price alone does not determine demand |
| equilibrium | the point at which consumers buy all of a product that sellers supply |
| gross domestic product | total market value of goods & services in a nation in one year |
| business cycle | the general pattern of expansion & contraction that an economy goes through |
