Name _Lauren Sutherland___Chapter 11. What is the difference between revenue and profit?Revenue is the total amount of money a business takes in during a certain time period by selling good and services. While profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses. 2. What is the difference between standard of living and quality of life?Standard of living is the amount of good and services people can buy with they money they have. While Quality of life is the general well-being of society in terms of its political freedom, natural environment, education, healthcare, safety, amount of leisure and rewards that add to personal satisfaction.3. What is risk, and how is it related to profit?Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. This relates to profit because if you business if successful then you will earn a profit and make money. 4. What do the terms stakeholders, outsourcing, and in-sourcing mean?Stakeholders means all the people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address. Outsourcing means contracting with other companies to do some of the firms functions, like production or accounting. In-sourcing means foreign companies opening offices and factories in the United States. 5. What benefits do you lost by being an entrepreneur, and what do you gain?What you gain from being on entrepreneur is the ability to make your own decisions, you can hire your own staff, high possibility of wealth, and freedom to succeed. While the benefits you may lose is no paid vacations, not health insurance, no daycare, and freedom to fail.6. What are the five factors of production? Which ones seem to be the most important for creating wealth?The five factors of production are land, labor, capital, entrepreneurship, and knowledge. I think knowledge seems the most important for creating wealth.7. What are four ways the government can foster entrepreneurship?A few ways the government can foster entrepreneurship is by minimizing spending and keeping taxes and regulations to a minimum, passing laws that enable businesspeople to write enforceable contracts, establishing a currency that’s tradable in world markets, and minimizing corruption. 8. What’s the difference between effectiveness, efficiency, and productivity?Effectiveness is producing the desired result, efficiency is producing goods and services using the least amount of resources, and productivity is the amount of output you generate given the amount of input. 9. What are some of the major issues affecting the economy today?Some major issues affecting the economy of wars since they cost billions of dollars tofund something has to give. Such as cost of security goes up along with cost of insurance.10. What major factor caused people to move from farming to manufacturing and from manufacturing to the service sector?Industrialization in the 19th and 20th centuries was the major factor to why people moved from farming to manufacturing. As technology improves less workers are nowneeded in the factories, moving people to the service
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