EC-907
The organized way in which a country
handles its economic decisions.
What is an economic system?
The questions answered by individuals and businesses, not the government.
What is the private enterprise system?
Monetary reward
for taking a risk
and investing in
a business
What is profit?
The possibility of loss
(failure) or gain (success)
What is business risks?
The rivalry between two or more businesses to
attract scarce, or limited, customer dollars
What is competition?
The elements of all economic systems
What are resources, markets, participants, and the medium of exchange?
What is freedom in the marketplace?
Raw materials purchased to produce products.
What is cost of goods?
Its the only way to be successful.
What is a reason to take risks?
Occurs between or among
businesses that offer similar
types of goods or services
What is direct competition?
The types of economic systems.
What are traditional, command, and market?
The disadvantages of private enterprise.
What are unemployment, poverty, and unequal distrubution of wealth?
Money left after cost of goods is subtracted from income.
What is gross profit?
The classifications of business risks.
What are hazard, operational, strategic, and financial?
Occurs between or among
businesses that offer
dissimilar goods or services
What is indirect competition?
An example of a traditional economy.
What is Amazon River Communities?
The limits to private enterprise.
What are taxes, laws, personal choices, and cannot buy everything?
Money left after
cost of goods and
operating expenses
are subtracted
from income
What is net profit?
Loss or no loss
What is pure risk?
Using prices to attract scarce customer dollars.
What is price competition?
The 2 types of command economies.
What are communism and socialism?
With the private enterprise system, you have the freedom to...
What is to own, use, buy, and sell private property?
Motivation and satisfaction.
What is the benefits of profit?
Loss, no change,
or gain.
What is speculative risks?
Competing on a basis other than price to
attract scarce customer dollars
What is nonprice competition?