| A | B |
|---|
| business | any commercal activity that seeks profit by providing goods and services to others in exchange for money |
| market research | gathering/analyzing information about consumers wants, needs and preferences |
| competition | contest among businesses to win consumers |
| profit | the money left over after a business has paid the cost of providing the goods and services |
| resources | items people/businesses use to get what they need or want |
| What impacts decision making? | important, expense, goals/impact on life or future |
| Step one of Decision Making Process | Identify the problem or situation |
| Step two of Decision Making Process | Consider the possible alternatives |
| Step three of Decision Making Process | Look at pros and cons |
| Step Four of Decision Making Process | Make a decision |
| Step five of Decision Making Process | Evaluate your decision |
| Consumers tell business what products to produce | by what they decide to buy or not buy |
| Competition is great for consumers because | it encourages quality products/great service/competitive prices |
| target market/niche market | a specific group of consumers--such as women over 25 or men 18-29 |
| 1st Category of Business Activity | Identify opportunities for products or services |
| 2nd Category of Business Activity | Evaluate the demand for products and services |
| 3rd Category of Business Activity | Obtain start-up money and operating capital |
| 4th Category of Business Activity | Manage the production of goods or services |
| 5th Category of Business Activity | Market the goods and services |
| 6th Category of Business Activity | Keep records for government requirements and to improve processe |
| supply | The amount of goods and services that businesses/producers are willing to provide at various prices is called |
| demand | The amount of goods and services that consumers are willing to buy at various prices is called |
| ecnomics | The study of how individuals and groups satisfy their needs and wants by making choices is called |
| How does capitalism answer the economic questions? | Individuals answer the economic questions |
| How does democratic socialism answer the economic questions? | individuals/government answer the economic questions |
| How does authoritarian socialism answer the economic questions? | government answers the economic questions |
| scarcity | unlimited wants and needs and limited resources |
| natural resrouces | found in earth/from nature--trees, water, grains, wheat cattle |
| labor/human resources | people resources |
| capital resources | things used to produce goods and services--buildings, materials, equipment |
| entrepreneurial resources | idea resources--recognizing opportunities |
| capitalism is also known as | free enterprise |
| Resources are privately owned, government promotes free trade and tries to prevent unfair trade practices | Capitalism |
| price | amount of money given or asked when goods and services are bought and sold |
| Government controls all resources individuals have little choice | Authoritarian Socialism |
| Individuals own some businesses and government owns major industries | Democratic Socialism |
