Unit One Flashcards
Needs
Goods and services you must have to survive/necessities.
Why is Abraham Maslow important? And what did he develop?
His ideas and theories about human psychology are heavily applied in the world of business today, and he developed a “hierarchy of needs”.
What are the hierarchy needs from low order to high?
Physiological(eating, sleepy), safety and security, love and belonging, esteem and recognition, self actualization.
What is a business?
An organization that produces or sells good or services to satisfy the needs, wants, and demands of consumers.
Name three types of businesses
Local, national, and multinational
Essential goods
Things needed for survival (food, clothing, shelter, heating, water)
Luxury goods
Enjoyable but not necessary for survival(pool, spa, limo rides, Starbucks Frappuccino’s)
What is the difference between goods and services?
Goods are tangible(can be seen and touched) however, services do not result in a product and are intangible.
What is a Not-For-Profit Organization(NFP)
An organization that does not seek to make a profit from the operations of its business.ex. CYAN
Economic resources
Resources needs to provide goods/services to consumers.
Why are the factors of productions(economic resources)?
Natural Resources
-raw materials that come from the earth, water and air.
Human Resources
-The people who work to create the goods and services.
Capital Resources
-Resources that last for a long period of time and require investment in the part of the business
Entrepreneurial Skills
-the person who takes the initiative to combine the other resources to produce goods.
What happens if there isn’t enough of an economic resource?
- Price if the good or service increases.
- Alternatives must be found for the resource.
Invention
- The creation of Something New
- A product or process that does something that has never been done before
Name examples of inventions
Internet Telephone Airplane Wheel Light Bulb Automobile
Innovation
- A change to something that already exists
- Using a new technology, materials or process to improve existing products.
Name some innovations
Cellular phone, hybrid cars, Lululemon leggings.
What inspires inventions and innovations to happen?
They usually happen by accident or by design. They often solve “what if” questions.
What are some things innovators do to improve a product?
- Change how it’s used
- Change the packaging
- Change the design
- Change the manufacturing process
What are some good qualities of inventions and innovations?
- Simplify tasks
- Speed up processes
- Make us more comfortable
- Improve safety
- Allow is to do new things
- Lead to new discoveries
- Allow more products to be invented
How do innovators and inventors protect their creations?
- Patents
- Copyright
- Trademarks
- Licensing
Patents
- Grant made by the government that gives the creator of an invention the sole right to make, use, and sell the invention for a set period of time.
- They last for 20 years in Ca
- Ex. Dry Fit, Nike Air technology
Copyright
- Protects literary works, musical works, artistic works, and software.
- Last for 50 years after the death of the creator of the work
- eg. Internet articles, school plays, songs, etc.
Trademarks
Words, symbols, or designs( or combination) used to identify a product or service and distinguish it from its competitors.
- Last for 15 years and can be renewed every 15 years thereafter
- e.g. Nike ‘swoosh’ or Tim Hortons ‘always fresh’
Licensing
The inventor allows another business to use his or her invention for a fee(called a royalty) ex. The blue jays let the clothing designers go use their logo for a price.
Demand
The quantity of goods or service that consumers are willing and able to buy at a particular price.
What is the law of demand?
Usually consumers will increase the quantity they demand of a good or service as the price decreases.
What creates demand?
- Consumer is aware and interested in the good.
- There is ‘supply’ of the good/Service.
- Price is reasonable and competitive
- The customer can access the good
What will change demand?
- Change in consumer income
- Change in consumers’ tastes
- Change in what we expect in the future.
- Change in population
Supply
The quantity of a good or service that businesses are willing and able to provide within a range of prices.
What is the law of supply?
Usually as prices increase, the producers will increase the quantity of goods they provide.
What changes the quantity supplied?
- A change in the number of producers.
- A change in the price of related goods
- Change in technology
- Change in cost of production
Surplus
When supply is greater than demand=product left over.
Shortage
When demand is greater than supply=more products needed
Equilibrium
- No surplus or shortage
- Demand=supply at the equilibrium point
What are the 3 basic economic questions?
- What will be produced?
- How will it be produced?(who makes this choice?)
- For whom will it be produced?
What are the three types of economy?
Centrally planned(communism), mixed(central and market), Market(free enterprise/Capitalism)
What will be produced? With mixed, market, and centrally planned economies.
Essentials and Wants, wants, essentials.
Who will decide how it’ll be produced? Mixed, market, and centrally planned.
Government and Business, business, government.
For whom will it be produced? Mixed,Market, centrally planned.
Government and people who can afford it, people who can afford it, government.
What is a traditional economy?
When beliefs, customs, religion, and tradition shape what goods and services the economy produces.
- bartering occurs ( trading goods)
- little surplus is produced(only make what’s needed) ex.the Inuit, parts of Haiti
Entrepreneur
Entrepreneurs start their own venture to solve a problem or take advantage of an opportunity.
What is an enterprise person?
Enterprising people do not start their own venture, they contribute to other people’s venture.
- they bring entrepreneurial characteristics to their work place.
- They often save businesses time and money and create new ideas .
What are some characteristics of entrepreneurs?
- Risk Taker
- Perceptive
- Curious
- Imaginative
- persistent
- Hard Working
- Goal setting
- Self Confident
- Flexibility
- Independent
Wants
Goods and services that are not necessary for survival ex. PSL
