Business Economics
Basic economics.
Terms
undefined, object
copy deck
- Capitalism/free enterprise
- Individuals own and operate most of the businesses that provide goods and services.
- Financial Resources
- The funds used to acquire the natural and human resources needed to provide products; also called capital.
- Economic System
- A description of how a particular society distributes its resources to produce goods and services.
- Primary Goal of Every Economic System
- To provide its people with a minimum standard of living or quality of life.
- Three Economic Questions
- What should be produced? How should it be produced? Who should share in what is produced?
- Economics
- The study of how resources are distributed for the production of goods and services within a social system.
- Non-Price
- 1. Reputation 2. Quality of Products 3. Service and Financing 4. Business Location
- Supply
- The number of products--goods or services--that businesses are willing to sell at different prices at a specific point in time.
- Price
- How much we pay for a good or service
- Risk
- Success or failure
- Modified capitalism
- Differs from pure capitalism in that the gov't intervenes and regulates business to a certain extent.
- Natural Resources
- Lands, forests, minerals, water, and other things not made by people.
- Ownership
- Individuals and businesses must have the right to own property.
- Entrepreneurial Resources
- Meeting the changing wants and needs of people. Entrepreneurs improve on ways to use resources, or create and produce new ones.
- Human Resources
- The physical and mental abilities that people use to produce goods and services; also called labor.
- Competition
- The rivalry among businesses for consumers' dollars.
- Profit
- Individuals and businesses must have the right to make decisions that determine how the business operates, within the limits of the law.