5 Questions
Which of the following best defines an entrepreneur?
Someone who organizes and manages a business while assuming its risks
Entrepreneurship is the process of
Discovering new ways of combining resources
What determines an entrepreneur's costs of production?
The prices required to bid resources away from alternative uses
How does an entrepreneur earn a profit?
By selling products at a higher price than the cost of resources
In competitive resource markets, an entrepreneur's costs of production are determined by
The prices required to bid resources away from alternative uses
Study Notes
Defining an Entrepreneur
- An entrepreneur is best defined as someone who undertakes the process of entrepreneurship.
Determining Costs of Production
- An entrepreneur's costs of production are determined by the overall process of entrepreneurship.
- In competitive resource markets, an entrepreneur's costs of production are determined by the market forces.
Earning a Profit
- An entrepreneur earns a profit by successfully undertaking the process of entrepreneurship.
- Profit is a key motivation for entrepreneurs to take risks and innovate.
Test your knowledge on entrepreneurship with this quiz! Learn about the role of entrepreneurs, the process of combining resources, and the risks involved in starting a business. Challenge yourself and see how much you know about this dynamic field of innovation and change.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
