EC-907
traditional, command, and market
What are the types of economic systems?
Business and individuals
Who owns and controls economic resources in a private enterprise system?
to make a profit
What is the major reason most business owners are willing to take the risk of going into business?
hazard, financial, operational, and strategic
What are the general classifications of risk?
A rivalry between companies that sell similar goods
What is direct competition?
Amazon rainforest communities
What is an example of a traditional economic system?
freedom in the marketplace, private property, limited government control, competition, the profit motive, and the price-directed system
What are characteristics of a private enterprise system?
operating expenses
What is the routine costs involved in running a business?
Operational risk
What category of business risk includes production problems and incompetent employees?
A rivalry between companies that sell goods that are not similar
Indirect competition
Communism and socialism
What are the two main types of command economic systems
periods of unemployment, poverty, and unequal distribution of wealth.
What are disadvantages of a private enterpise system?
Gross profit
What is money left after the cost of goods is subtracted from total income?
A struggle between businesses to attract scarce customer dollars
What is competition?
Discount coupons, Special sales, Price matching, Rebates
What are some examples of price competition?
Welfare states
What are socialist countries often called?
freedom to choose your economic goals and the type of work you do, the freedom to make decisions about private property, and the freedom to compete
Net profit
What is difference between the selling price of a product and all the costs and expenses of selling it is known as?
Robbery
What is an example of a pure business risk?
Exceptional quality, Special features, Trained personnel
Outstanding, customer service, Convenience
Modern facilities, Wide variety of products
What are some examples of non price competition?
England, Ireland, Canada, France
What countries mix socialist and market policies to form mixed economies?
competition among buyers, personal choices, certain laws, and taxes.
What are the limits to economic freedom in a private enterprise system?
To serve the community
What is a personal reason some individuals go into business?
Buying insurance
What is a way to transfer risk?
What is an oligopoly?