Chapter 2

Entrepreneurs in a
Market Economy
2.1 Entrepreneurs Satisfy Needs and
Wants
2.2 How Economic Decisions are Made
2.3 What Affects Price?

Entrepreneurship: Ideas in Action 6e

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Lesson 2.1
Entrepreneurs Satisfy Needs and Wants

Learning Objectives
2.1-1 Distinguish between needs and
wants.
2.1-2 Describe the types of economic
resources.
2.1-3 Explain the role of entrepreneurs
in the U.S. economy.
Chapter 2 Entrepreneurship: Ideas in Action 6e
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 Is It a Need or a Want?

 Needs
 Things you must have in order to survive
 Wants
 Things you think you must have in order to be
satisfied
 Add comfort and pleasure to your life
 Economic wants
 Noneconomic wants
 Needs and wants are unlimited.
Chapter 2 Entrepreneurship: Ideas in Action 6e
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 Maslow’s Hierarchy of Needs Pyramid

Chapter 2 Entrepreneurship: Ideas in Action 6e

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 Economic Resources

 Economic resources
 The means through which goods and
services are produced
 Factors of Production
 Natural resources
 Human resources
 Capital resources

Chapter 2 Entrepreneurship: Ideas in Action 6e

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 Economic Resources (continued)

 Limited Resources
 Law of Diminishing Returns

Chapter 2 Entrepreneurship: Ideas in Action 6e

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 Role of Entrepreneurs in the U.S. Economy

 Supply and Demand

 Capital Investment and Job Creation
 Change Agents

Chapter 2 Entrepreneurship: Ideas in Action 6e

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 Questions for Quiz

1. Needs are thing that you must have in order to survive. T/F
2. The role of the business is tor produce and distribute goods and services that people need and want. T/F
3. The most basic of needs is security. F/T
4. Both types of wants—economic and noneconomic—form the basic of an economy. F/T
5. Needs and wants are unlimited. T/F
6. Economic resources are not factors of production. F/T
7. Services must be provided to you at the time you need them—they cannot be stored. T/F
8. Capital resources include buildings and equipment. T/F
9. All economic resources have a limited supply. T/F
10. All businesses that exist in the US today began as an entrepreneurial idea. ?

Chapter 2 Entrepreneurship: Ideas in Action 6e

Slide 8 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.