2. ENTREPRENEUR ???

3. Primary Learning Goals Define Entrepreneur and Economics, Distinguish the difference between Goods and Services List three elements that make up a Free Enterprise system Discuss the role of competition

4. ENTREPRENEUR Person that undertakes the creation, organization and ownership of a business by accepting its risks and responsibilities in order to gain profit and personal satisfaction

5. ECONOMICS The study of the decisions or choices that go into making, distributing and consuming products.

6. FREE ENTERPRISE SYSTEM Right to choose what products to buy Right to own private property Right to start a business and compete with other businesses

7. Elements of a Free Enterprise System Profit - Risk - Competition money left after all the expenses have been deducted from the business’ income encourages production of quality products to meet consumer needs - Struggle between companies for customers

8. How do companies compete? Price CompetitionNon-Price Competition

9. Types of Competition Price Competition Anything related to price Every Day Low Prices Sale Non-Price Competition Location Product quality Product selection Company reputation Company expertise Services offered

10. Roles of Competition Forces efficiency Keeps prices down and quality up Encourages non-price factors: - quality - services - reputation

11. Goods and Services Products produced by our economic system in order to satisfy our wants Goods – tangible (physical) products Services – intangible (conceptual) products

12. FACTORS OF PRODUCTION Land Labor Capital Entrepreneurship

13. LAND All natural resources Geographic location Air Water Trees Minerals Crude oil

14. LABOR Human resources Workers (full and part time) Management

15. CAPITAL Equipment Factories Tools Money

16. ENTREPRENEURSHIP Ideas and decisions of the business owner to bring together all of the other factors Scheduling Financing Marketing Purchasing Security/Risk Management Etc.