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Entrepreneurs in A Market Economy

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OSCAR SUY-PEREZ
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66 views

Entrepreneurs in A Market Economy

Uploaded by

OSCAR SUY-PEREZ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 9

Chapter 2

Entrepreneurs in a Market
Economy
2.1 Entrepreneurs Satisfy Needs and
Wants
2.2 How Economic Decisions are Made
2.3 What Affects Price?

Entrepreneurship: Ideas in Action 6e


© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Lesson 2.2
How Economic Decisions are Made
Learning Objectives
2.2-1 Compare and contrast different types of
economic systems.
2.2-2 Describe the characteristics of the U.S.
economy.
2.2-3 Explain how scarcity affects economic
decisions.
2.2-4 Explain how business functions are used to
satisfy consumers.

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 2 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Economic Systems

 Command Economy
 Market Economy
 Traditional Economy
 Mixed Economy

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 3 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The U.S. Economic System

 Capitalism
 The private ownership of resources by
individuals rather than by the government
 Private Property
 Freedom of Choice

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 4 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The U.S. Economic System (continued)

 Profit
 The difference between the revenues earned by a
business and the costs of operating the business
 Competition

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 5 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Economic Choices

 Economic decision making


 The process of choosing which needs and
wants, among several, you will satisfy
using the resources you have
 Scarcity
 When people’s needs and wants are
unlimited but the resources to meet those
needs and wants are limited

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 6 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Economic Choices (continued)

 Opportunity cost
 The value of the next-best alternative: the one you pass up

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 7 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Functions of Business

 Production
 Marketing
 Product
 Distribution
 Price
 Promotion
 Management
 Finance
Chapter 2 Entrepreneurship: Ideas in Action 6e
Slide 8 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Questions for 2.2

1. Entrepreneurship thrives in a market economy. T/F


2. The traditional economy is used in developed countries. F/T
3. A mixed economy often results when a country shifts away from a command economy toward a market economy. T/F
4. The US economic system is best described as a traditional economy. F/T
5. The rivalry amount businesses to sell their goods and services is called competition T/F
6. Two factors that commonly enter into economic decision making are scarcity and opportunity cost. T/F
7. The value of the next-best economic alternative is the trade-off cost. F/T
8. The functions of business operate independently of each other. F/T
9. The primary reason a business exists in a market economy is to earn a profit. ?

Chapter 2 Entrepreneurship: Ideas in Action 6e


Slide 9 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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