Question

Jose is an auto mechanic in a nearby larger town. He has decided his own small town needs its own car repair shop. Jose bought the buidling and opened his shop. Jose is an example of which of the following?
A.
trade surplus

B.
entrepreneur

C.
gross domestic product

D.
opportunity cost

Answer 1

Answer:

B.  entrepreneur

Explanation:

An entrepreneur is a person who takes on financial and business risks in order to make a profit and change in the long run. It is often viewed as a change to launching a small, self-run business, and one’s willingness to organize and control everything from scratch to make the stand-alone business. In the economy, entrepreneurs are important to keep the small businesses running, take a creative stance on the market, and sometimes even show what the market is lacking, or introduce the new need for the consumers.

In the said example, we see Jose is taking a risk – he is deciding to change the job which supports him well to explore the market. He is opening up his own new business on a much smaller scale than the one he already participates in. He does not have a guarantee it will work, but he has observed the market himself, organized the job, took the risk, and hopes to make a profit in his small hometown.