Small Businesses in LouisianaSmall Businesses in Louisiana

Unit 7Unit 7

SupplySupply The amount of The amount of

goods offered for goods offered for sale by a businesssale by a business

DemandDemand The desire or need The desire or need

for a product or for a product or serviceservice

CompetitionCompetition A business relation A business relation

in which two in which two parties compete to parties compete to gain customers gain customers

ProfitProfit The amount of The amount of

money that is left money that is left over after all the over after all the costs of running a costs of running a business have business have been paidbeen paid

GovernmentGovernment A group of elected A group of elected

citizens who solve citizens who solve problems and problems and make laws for a make laws for a communitycommunity

Economic ChoiceEconomic Choice

The choice made The choice made among possibilitiesamong possibilities

Opportunity CostOpportunity Cost

The process of The process of choosing one good choosing one good or service over or service over another. The item another. The item that you don’t pick that you don’t pick is the is the opportunity opportunity costcost..

Decide between a Decide between a rabbit or rabbit or skateboardskateboard

ConsumerConsumer A person who buys A person who buys

or uses a product or uses a product or serviceor service

ProducerProducer Someone who Someone who

makes a product or makes a product or offers a serviceoffers a service

People and People and businesses that businesses that make or provide make or provide goods and servicesgoods and services

TradeTrade The exchange of The exchange of

one kind of product one kind of product or service for or service for anotheranother

SpecializationSpecialization Being an expert Being an expert

in one job, in one job, product or product or serviceservice

InterdependenceInterdependence When businesses When businesses

or people depend or people depend on each other for on each other for goods and servicesgoods and services

GoodsGoods Products, or things Products, or things

that can be bought that can be bought or soldor sold

ServicesServices Work that someone Work that someone

does for someone does for someone elseelse