EC-907
3 elements in economic system
what is recources markets and participants
system, individuals and groups (rather than the government)
what is private enterprise system
somthing you get in return
what is reward
The possibility of loss (failure) or gain (success) inherent in conducting business
what is business risk
the use of money to generate a profit or gain
what is investent
somthing unlimited
what is unlimited wants
competing for resources or money
what is competition
what is making money for your business
what is profit
The rivalry between two or more businesses to attract scarce customer dollars
what is competition
Chances of loss that carry with them the possibility of loss or no loss
what is pure risk
based on traditions passed down
what is tradition market
Characteristics of a private enterprise system
what is freedom in the marketplace, private property, limited government control, competition, the profit motive, and the price-directed system.
income-expenses
what is profit
The quantity of a good or service that buyers are ready to buy at a given price at a particular time
what is demand
Income received from an investment
what is return
The government owns and operates many or allof the means of production and distribution
what is command economy
owning land is considerd
what is private property
expenses are greater than income
what is no profit
Financial risks that a business cannot control, such as inflation and interest rate fluctuations
external risks
Chances of loss that may result in loss, no change, or gain
what is speakultive risk
Examples of Communism
wht is china
limiting gov controll
what is private enterprise system
are all of the expenses involved in running a business
what is opertating expenses
Potential events or situations that can cause injury or harm to people, property, or the environment
what is hazard risk
A promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected
what is warrenty