1.3 // The Local Economy Flashcards
What is the local economy made up of?
Taxpayers, government, businesses, schools, and organizations; everyone who lives and works locally
What are two ways to support the local economy?
Support local businesses, and provide philanthropy.
What is philanthropy?
The sharing of time, talent, and treasure.
What is an entrepreneur?
An innovator and risk taker who tries a new way of doing things; one who develops products and processes to please customers.
What are the two main qualities of an entrepreneur?
They are creative and willing to take risks.
What are the four main resources all economies posses?
Land, labor, capital, and entrepreneurship.
What is creative destruction?
When entrepreneurs take risks and go out of the box, leaving behind obsolete products and processes.
What are the two main incentives of entrepreneurs?
Private property rights and entrepreneurship.
