Notes of Unit 2

barter to exchange goods and services without the use of money

competitor person or group that rivals another

exchange to trade, or a market where buyers and sellers interact

market place where buyers and sellers exchange goods and services

market share a company's sales divided by the total sales in the industry over a certain period of time

trade to exchange goods and services, with or without the use of money

value an item's worth

voluntary willing consumer person whose economic wants are satisfied by using goods and services

demand the willingness and ability of consumers to buy a good or service

fad goods and services that become popular very quickly and then lose their popularity very fast

investment something that people put their money into because they hope to make more money in the future

return money earned on an investment

What goods and services will be produced?
How will these goods and services be produced?
Who will consume them?

capital money used for an economic purpose, such as investment

entrepreneur person who organizes other productive resources to make goods and services

innovation when an invention becomes usable in a way that has economic value

invent to make a new product

producer person who makes goods and services

risk the chance that things will turn out differently than expected

profits = revenue – expenses
Entrepreneurs and other sellers earn profits when buyers purchase the product they sell at prices more than high enough to cover the costs of production.
Entrepreneurs and other sellers incur losses when buyers do not purchase the product they sell at prices high enough to cover the costs of production.

labor human resource that is used to produce goods and provide services

productivity the amount of output that comes from a unit of input

references people that comment on a person's character