EC-907 – The Private Enterprise System
People and businesses make their own choices in this system.
What is a market economy?
The government controls everything in this system.
What is a Command Economy?
Tools, machines, and buildings used to make goods.
What is Capital?
The total value of what a country makes in a year.
What is GDP?
A risk like someone slipping and getting hurt.
What is a Hazard Risk?
The reason people start businesses.
What is profit?
A mix of government control and free business.
What is a Mixed Economy?
The work people do to make things.
What is Labor?
When prices go up.
What is Inflation?
A way to stop bad things from happening.
What is Risk Control?
When businesses try to do better than others.
What is competition?
Uses old ways and customs to decide what to do.
What is a Traditional Economy?
A person who starts a business.
Who is an Entrepreneur?
A time when people lose jobs and money slows down.
What is recession?
Losing money because a competitor is better.
What is a Competition Risk?
A market with many sellers and different products.
What is Monopolistic Competition?
Economy with free healthcare and school from the government.
Resources that come from nature.
What are Natural Resources?
This increases when people buy more.
What is Spending?
Getting insurance to help with possible losses.
What is a Transferring Risk?
Owning land, buildings, and businesses.
What is Private Property?
Countries that give people free services like healthcare.
What are Welfare States?
When there’s not enough of something.
What is Scarcity?
A number showing how many people don’t have jobs.
What is the unemployment rate?
A risk the business didn’t know about or plan for.
What is a retaining risk?