Unit 1: Business and Economic Basics

Define a business.

• Business is the activity of making profit by producing and selling consumers goods and services in exchange for money.

• Business is the process of studying natural phenomena and their causes.

• Business is the act of providing free services to the community without any monetary exchange.

• Business is the practice of creating art for personal satisfaction only.

Define what goods are.

• Goods are items that are produced to be sold to consumers.

• Goods are services provided for free to everyone.

• Goods are natural resources found in the environment.

• Goods are only digital products sold online.

Define services.

• Services are actions or activities that are performed for others for a fee.

• Services are physical goods that can be touched and stored.

• Services are natural resources found in the environment.

• Services are products that are manufactured in factories.

Define consumers.

• A consumer is a person who purchases goods and services for personal use.

• A consumer is a person who produces goods for sale.

• A consumer is a business that sells products to other businesses.

• A consumer is a government agency that regulates trade.

Define profit.

• Profit is the money businesses get to keep after paying off expenses. Profits are a measure of the value it creates in society.

• Profit is the total amount of money a business spends on resources.

• Profit is the number of employees working in a business.

• Profit is the process of selling goods at a loss to attract customers.

Define economics.

• Economics is the study of how people use resources to produce and distribute goods and services.

• Economics is the study of ancient civilizations and their cultures.

• Economics is the science of weather patterns and climate change.

• Economics is the study of human anatomy and physiology.

Define economic activity.

• Economic Activity is the activity of producing and selling goods or services and making them available to all consumers.

• Economic Activity is the process of studying the weather and climate patterns.

• Economic Activity is the act of creating works of art and literature.

• Economic Activity is the practice of maintaining law and order in society.

Define resources.

• Resources are something that you can obtain when you need it. It is usually broken down into 3 categories.

• Resources are only available in limited quantities and cannot be replenished.

• Resources are always physical objects found in nature.

• Resources refer exclusively to financial assets.

Define limited resources.

• Limited resources are resources that are not available in unlimited amounts and must be used wisely.

• Limited resources are resources that can be created whenever needed.

• Limited resources are resources that are always available in abundance.

• Limited resources are resources that increase automatically over time.

The three resources are:

• Land, Labor, Capital

• Water, Air, Fire

• Gold, Silver, Bronze

• Books, Pens, Paper