Economic Systems
This economy allows individuals to own and operate the majority of businesses that provide goods and services.
Capitalism
This is the ultimate objective of every firm and business.
Satisfying the needs of customers (providing value to satisfy a need)
This is the total dollar value of all goods and services produced by all people within the boundaries of a country during a specific time period.
Gross Domestic Product
This is the rivalry among businesses for the sales to potential customers.
competition
When was the Great Depression?
1930's
Socialism and Communism are 2 forms of this type of economy.
(the gov't decides what goods to produce, how to produce them, for whom and who owns/ controls it)
Command Economies
This is what remains after all business expenses have been paid from sales revenue.
Profit
These two factors cause the value of the US dollar to shift up or down.
Inflation and deflation
This type of competition reflects a market where no single buyer can impact the price of a good
Perfect competition
Who protects the environment and ensures sustainability of natural resources?
Environmental Protection Agency
These are goods and services purchased by individuals for personal consumption. This means that individuals are the biggest customers of American business.
Consumer Products
This refers to the differences among people in a workforce. Typically race, gender, ethnicity, and identity.
Cultural diversity
"Diversity"
This is the total value of a nation's exports minus the total value of its imports over a specific period of time.
Balance of trade
Market price is dependent on these factors.
Supply and demand
Identify two ways in which the global economy impacts US business
Exchange rates
Tariffs
Human rights
Natural resources
New customers
This is the term created to describe how an individual's own personal gain benefits others and a nation's economy. It was identified by Adam Smith
The invisible hand
(From his book the Wealth of Nations)
These are four management skills identified to improve management ability. Name 3
1. Interpersonal skills
2. Analytic skills
3. Technical skills
4. Conceptual skills
This reflects the nation's performance of the labor force and an evaluation of the economy
Unemployment rate (usually 4-6%)
This type of competition exists when there are very few businesses or suppliers for different products
Oligopoly
This has dramatically changed the business landscape for advertising and sales by using big data.
Social Media
(or internet)
What are the Basic assumptions of Laissez Faire Capitalism? (name 3)
1. Right to limited government intervention
2. Right to economic freedom and freedom to compete
3. Right to own private property and resources
4. Right to create wealth
What are 3 of the 4 resources that must be combined to make a business successful?
1. Human Resources
2. Material Resources
3. Informational Resources
4. Financial Resources
These are the measures commonly used to evaluate a nation's economic health. (name 4)
1. Balance of trade
2. Consumer confidence index
3. Corporate profits
4. Inflation rate
5. National income
6. New housing starts
7. Prime interest rate
What are the types of competition?
1. Perfect
2. Monopolistic
3. Oligopoly
4. Monopoly
These components are key drivers for success in a business environment. (there are 4)
1. Competition
2. Global environment
3. Technology
4. Economics