Chapter 1.1 Vocabulary & Notes
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An individual who undertakes the creation,
organization, and ownership of a business

A new business undertaking that involves risk

The process of recognizing an opportunity,
testing the market and gathering resources
necessary to go into business
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Having an entrepreneurial mindset, thinking
of how to create a product or service that is
needed by customers
To profit from as well
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The study of how people choose to allocate
scarce resources to fulfill their unlimited
wants
◦ How much is being bought by people and what are
they willing to spend?
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System that people have the right to make
economic choices
◦ You buy whatever you want
◦ You are free to open a business
◦ Promotes competition between companies
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The amount of money that is left after all
expenses have been deducted while
operating a business

The amount of competition in an industry
◦ How many different businesses are selling a
particular product or service
◦ Example: cellular phone service
◦ At&t, Verizon, Sprint, T-Mobile

A market structure that has only one seller in
an industry
◦ One company dominates the market and controls
supply and price
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Name, Date, 1 paragraph
Pretend you won a shopping spree at the
mall, what are your top 3-5 purchases?
Previous entrepreneurial experience
◦ Grass cutting
◦ Lemonade stand
◦ Fundraising

Tangible, physical products that consumers
purchase

Intangible, nonphysical products that
consumers purchase

A basic requirement for survival
◦ Food
◦ Water
◦ Shelter

Something not absolutely necessary for
survival, but you would like to have it

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The resources businesses use to produce the
goods and services that people want to buy
4 Factors:
◦
◦
◦
◦
Land
Labor
Capital
Entrepreneurship

Occurs when demand exceeds supply
◦ When you want to buy something but it is not
available

The quantity of goods and services that
consumers are willing and able to buy

That amount of goods and/or services that
producers are willing to provide

A point at which consumers buy all of a
product that is supplied

The total market value of all goods and
services produced by a given nation over a
certain time period

The general expansion and contraction that
the economy goes through