Economics: Module 3 Note Taking Guide What is entrepreneurship?



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Economics: Module 3 Note Taking Guide

1. What is entrepreneurship? _________________________________________________________________________

2. Fill in the chart of entrepreneurs and their contributions:

Entrepreneur

Contributions

An Wang





Madame C.J. Walker





Howard Schultz





James Cash Penney





Samuel F.B. Morse





George Washington Carver




Joseph A. Unanue





Margaret Hutchison Rousseau




Chris DeWolfe





Tom Anderson





Jessica Jackley





3. What are the four main factors of production? __________________________________________________________

__________________________________________________________________________________________________

4. Investments in capital goods aim to increase __________________.

5. What is the difference between a fixed cost, like rent, and a variable cost, like electricity? _______________________

__________________________________________________________________________________________________

6. ______________ occurs when two businesses form into one.

a) Horizontal is _______________________________________________________________________________

b) Vertical is _________________________________________________________________________________

7. Types of businesses:

a) Sole Proprietorship _________________________________________________________________________

b) Partnership _______________________________________________________________________________

Economics: Module 3 Note Taking Guide

c) Limited Liability Company (LLC) ________________________________________________________________

d) Corporation _______________________________________________________________________________

8. Fill in the advertising strategy used for each example given:



Example of Advertisement

Strategy

Do you know what’s in the soil of the food you consume? Do you want to take a bite of a juicy strawberry that has been sprayed with pesticides? Why risk poisoning yourself and your children, choose Organics, the only fruit not contaminated and grown organically!




You forgot your mom’s birthday? Make it up to her with a beautiful diamond pendant from Hay Jewelers, we’re here for you when you need to say sorry in a big way.




Anderson’s Grocery makes your weekly shopping trip a breeze. Our store is laid out for you to complete your shopping easily and our frequent buyer card gives you discounts matched by no other competitor.




Remember the smell of your grandmother’s fresh apple pies wafting through the house? The feeling you got from that first bite was priceless. Now you can taste that again with Granny Smith’s Apple Pies.




Spice up your wardrobe with Pinely’s Sunglasses- Brad Pitt only wears Pinely’s no matter where he goes, don’t you want to keep up with the stars while looking your best?




9. Formulas are given to use on the following chart. (The areas highlighted in green are for you to complete). The first three rows are done for you as examples with work shown to guide you.

Total Revenue = Quantity x Price

Total Cost: Fixed Cost + Variable Cost

Profit or Loss: Total Revenue – Total Cost

Marginal Revenue is figured by finding the difference of the previous two quantities (total revenue of pair 2 – pair 1)

Marginal Cost is computed by finding the difference of the previous two quantities for total cost (total cost of pair 2 – pair 1)



Quantity of Video Game Systems

Price (in whole dollars)

Total Revenue

Marginal Revenue

Total Cost

Marginal Cost

Profit (or loss)

0

252

0

0

210

n/a

0 – 210 = -210

1

246

1 x 246 = 246

246 – 0 = 246

408

408 – 210 = 198

246 – 408 = -162

2

240

2 x 240 = 480

480 – 246 = 234

564

564 – 408 = 156

480 – 564 = -84

3

234







642







4

228







684







5

222







774







6

216







1080







7

210







1410







8

204







1776







9

198







2178







Economics: Module 3 Note Taking Guide

10. Use the graph below to sketch a marginal cost analysis graph using your data above. The y-axis should be your price and the x-axis should be your quantity.



















































































































































































































































11. After watching the presentation in 3.04 on comparing market types, fill in the pros and cons of the following markets. These are listed from the least competitive to the most competitive:

Market Type

Pro

Con

Monopoly







Oligopoly







Monopolistic Competition







Pure Competition







12. Business owners aim to ______________ costs and ______________ profits.

13. Using the graph below, assume a restaurant has enough resources to produce spaghetti and pizza along curve R (red). Is the restaurant MOST efficient at point B, C, or D? __________

14. If two people are out sick, would the restaurant function along curve S or T? _______

15. If the restaurant hires two more people and finds a better deal on sauce, would it function on curve S or T? _______





Economics: Module 3 Note Taking Guide

16. If the restaurant owner in the previous example makes 50 cents on each meal served and is thinking of hiring another employee at $7 per hour, and can sell an additional 10 meals with the additional employee, should she hire a new employee? Why or why not? _____________________________________________________________________

__________________________________________________________________________________________________

17. If the restaurant owner in the previous example finds that a soda machine will speed up production by eight meals each hour. The machine costs $2 per hour to operate. Should she buy the soda machine? Why or why not? _________

__________________________________________________________________________________________________

18. The graph below shows a shift in demand. If the demand shifts from D1 to D2, this shows a ____________ in the number of workers and a _____________ in wages.





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