Transcript Entrepreneurship, the Economy and Basic Economic Concepts, pp 6

Entrepreneurship
Mr. Bernstein
Entrepreneurship and the Economy, pp 6-9
and
Basic Economic Concepts, pp 11-14
February 2017
Entrepreneurship
Mr. Bernstein
What is an Entrepreneur?
• An individual who undertakes the creation,
organization, and ownership of a business
• Examples?
What is a venture?
• A new business undertaking that involves risk
• Examples?
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Entrepreneurship
Mr. Bernstein
What is Entrepreneurship?
• The process of recognizing an opportunity,
testing it in the market, and gathering
resources necessary to go into business
What is Intrapreneurship?
• The application of entrepreneurship within a
large organization
3
Entrepreneurship
Mr. Bernstein
What is Economics?
• The study of how people choose to allocate
scarce resources to fulfill their unlimited
wants
What is an Economic System?
• A set of laws, institutions and activities that
guide economic decision making
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Entrepreneurship
Mr. Bernstein
The Free Enterprise System: Capitalism
• Individual Economic Freedom
– Individuals can choose what they wish to buy
– Individuals can choose to own private property
– Individuals can start business ventures and compete with other
businesses
• Role of Competition
– Provides consumers choices
– Forces businesses to improve quality and become more efficient
– Reduces prices
• Also known as a Market Economy
5
Entrepreneurship
Mr. Bernstein
Market Structure: The Nature and Degree of
Competition
• Monopoly
• Oligopoly
• Perfect Competition
• Monopolistic Competition
• Entrepreneurs are more likely to succeed in which
market structure(s)?
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Entrepreneurship
Mr. Bernstein
Market Structure: The Nature and Degree of
Competition
• List three companies that are in direct
competition with each other.
• What are the products they use to compete?
• What are the relative prices of the products?
• In addition to product quality and price, in what
other dimension do the businesses compete?
• Which product would you choose and why?
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Entrepreneurship
Mr. Bernstein
Factors of Production
• Land
• Labor
• Capital
• Entrepreneurship
• Which factor is most abundant in America?
• Can the supply of the Factors of Production effect
the overall economy?
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Entrepreneurship
Mr. Bernstein
Supply and Demand
Equilibrium Price:
Where Supply Curve
Meets Demand Curve
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Entrepreneurship
Mr. Bernstein
Supply and Demand
Equilibrium Price:
Where Supply Curve
Meets Demand Curve
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Entrepreneurship
Mr. Bernstein
Supply and Demand
Increase in Demand:
Demand Curve shifts
and now meets
Supply Curve at new
Equilibrium
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Entrepreneurship
Mr. Bernstein
Supply and Demand
Increase in Supply:
Supply Curve shifts
and now meets
Demand Curve at new
Equilibrium
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Entrepreneurship
Mr. Bernstein
Supply and Demand
Relationship between Supply, Demand, Price and
Productivity
A rise in Productivity reduces costs and causes a rise
in Supply
Innovation in efficiency of production reduces prices
and increases economic acvtivity
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Entrepreneurship
Mr. Bernstein
Economic Indicators and the Business Cycle
GDP – measurement of total productivity
Underground economy
Business Cycle and psychology
Government effect – Monetary and Fiscal policies
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