Entrepreneurs have to satisy the needs and wants of the economy
Want or Need?
Need: Things that you must have in order to survive.
Want: Thing you think you must have in order to be satisfied.
How economic decisions are made
Ask these questions: What goods and services will be produced? How will they be produced? What needs and wants will be satisfied with the goods and services produced?
Command Economy: When the government determines what, how, and for whom products and services are produced.
Market Economy: When individuals and businesses decide what, how, and for whom goods and services are produced.
Traditional Economy: When goods and services are produced the way they have always been produced.