EC-907
What are problems of traditional economies?
The major problem for a traditional economic system is that there is little opportunity for growth or improvement. Few new ideas are accepted, and new technology is shunned because it is different. The people consume everything that they produce, so they are unable to save. Without any savings, they cannot invest in greater production. As a result, they are never able to raise their economic standards.
what are national unions?
National/International unions provide leadership for local unions and assist them in negotiating labor contracts.
Whats bilk?
: Cheat, swindle, defraud
What is the cost of goods?
The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells
What is direct competition?
Occurs between or among
businesses that offer similar
types of goods or services
whats the problems with communist command economies?
There are many problems in communist command economies. In theory, people in a communist country would eventually own everything, government control would not exist, everyone would perform the work that they do best, and everyone would be paid according to what they need. In reality, though, communist governments control their economies. When a government controls its economy, it controls its people as well.
What are Local Unions?
local union is a chapter of a national or international union that represents workers at a specific company or in a specific geographical area.
what are business risks?
The possibility of loss (failure) or gain (success) inherent in conducting business
What are creditors?
Individuals or businesses to whom a business owes money or from whom it wants to borrow money
What is indirect competition?
Occurs between or among
businesses that offer
dissimilar goods or services
whats the problem with Socialist command economies?
To pay for their many human services programs, socialist governments levy high taxes. Because of these high taxes, individuals have less money to spend. Businesses charge higher prices, which can result in fewer sales
what are federations?
A union federation consists of several national unions of different kinds that join together to further their common purposes, such as public relations, political agendas, etc
The rivalry between two or more businesses to attract scarce customer dollars
What is the economy?
The system in which people make and spend their incomes
What is price competition?
Using prices to attract scarce
customer dollars
Discount coupons
Special sales
Price matching
Rebates
Whats the problem with market economies?
Market economies also have their share of problems. People are free to go into business for themselves, but they run the risk of financial loss. In addition, they may experience legal problems if they do not follow government regulations for their businesses.
what are wages?
Pay is usually the number-one source of conflict between unions and management. Unions seek higher wages and guaranteed cost-of-living adjustments
what is a contract?
Agreement between two or more businesses or individuals stating that one party is to do something in return for something provided by the other party
What is efficiency
Accomplishing a task with a minimum expenditure of time and effort
what is nonprice competition?
Competing on a basis other than price to
attract scarce customer dollars
Exceptional quality
Special features
Trained personnel
Outstanding customer service
Convenience
Modern facilities
Wide variety of products
What are economic systems?
An economic system is the organized way in which a country handles its economic decisions and
solves its economic problems. In other words, it’s the way a country makes its earning and
spending decisions
what are benefits?
Unions seek to secure certain benefits for their members, including overtime pay, vacation pay, sick leave, health and life insurance, unemployment compensation, and pension plans.
what is demand?
The quantity of a good or service that buyers are ready to buy at a given price at a particular time
What is gross profit?
Money left after the cost-of-goods expense is subtracted from total income
How can competition benefit a business?
• Encourages new businesses to
enter the marketplace
• Encourages businesses to
operate as efficiently as possible
• Offers the hope of making profit