ec-907
An economic system in which people produce only what they must have to exist, and all economic decisions are based on habit and tradition.
What is a traditional economy?
Anything of value that people own in a free enterprise system.
What is private property?
Tangible items produced for personal use.
What are consumer goods?
The possibility of loss (failure) or gain (success) inherent in conducting business.
What is business risk?
The rivalry between two or more businesses to attract scarce customer dollars.
What is competition?
A command economic system in which the government controls the system and does not allow private ownership of the means of production and distribution.
What is communism?
: The desire to make a profit which moves people to invest in business.
What is the profit motive?
Tangible items that will be consumed by industrial users to produce other goods or operate a business.
What are industrial goods?
Possible events and situations resulting from employee actions, core processes, and daily business activities.
What are operational risks?
Competition in a private enterprise system benefits customers and society by keeping production efficient, quality good, and keeping these down.
What are prices?
An economic system in which elements of market and socialist command economies are combined.
What is a mixed economy?
Anywhere the buying and/or selling of goods and services takes place.
What is the marketplace?
People who use goods and services to satisfy their wants.
What are consumers?
Chances of loss that carry with them the possibility of loss or no loss.
What are pure risks?
The type of environment in which businesses operate, which is primarily based on the number of sellers in the market.
What is a market structure?
A command economic system in which government owns some basic means of production and allows private ownership of business as well.
What is socialism?
An individual who invents, develops, and distributes a good or service, assumes the risks of starting a business, and receives rewards for their efforts.
What is an entrepreneur?
Manufactured or constructed items that are used to produce goods and services.
What are capital goods?
A guarantee that protects a business when another person or business fails to fulfill the terms of a contract between them.
What is a surety bond?
Name the four main types of market structures described in module EC-912.
What are perfect competition, monopolistic competition, oligopoly, and monopoly?
Term used to describe consumer approval of products expressed by the purchase of products.
What is an economic vote?
A descriptive term for the American private enterprise economy because price determines what people buy, jobs taken, and business success or failure.
What is a price-directed system?
The economic process or activity of producing goods and services to satisfy wants.
What is production?
Potential events or situations that can cause injury or harm to people, property, or the environment.
What are hazard risks?
To protect the benefits of a competitive marketplace, this entity passes legislation to promote competition and prevent unfair trade practices.
What is the government (or U.S. government)?