EC-907
What three decisions must every nation make regarding its resources?
What resources they have, what they can produce, and who will receive the products.
What is another name for a private enterprise system?
A market economy (or market system).
How is profit determined?
By subtracting all expenses from the total income.
This is the inherent possibility of loss or gain that comes with conducting business.
What is business risk?
What exist all around us like on the job, at school, in sports, even in dating
Competition
What determines how a country makes its economic decisions?
The country’s economic system.
In a private enterprise system, who owns the economic resources?
Individuals and businesses (not the government).
Why do business owners take risks?
To receive a reward or profit in return for their effort.
Hiring new employees and buying new equipment are examples of these, which businesspeople must take to be successful.
What are risks?
Competition is?
The rivalry between two or more businesses
What common responsibility do almost all family units share regardless of their structure?
Deciding how to obtain and spend their income
What three questions must every economic system answer?
What to produce, how to produce it, and for whom to produce it.
What three things are invested when starting a business venture?
Time, effort, and money.
TWO out of Four Ways To Handle Risk?
Avoiding, Preventing/Controlling, Transferring, and Retaining
What are the "Four Types of Competition"
Direct competition, Indirect competition, Price Competition, and Nonprice Competition.
In this text, what is a country’s economic situation compared to?
A family unit.
How do consumers cast an "economic vote" in the marketplace?
By choosing which products or services to purchase.
What happens if expenses are greater than income?
There is no profit and the reward is lost.
What is ONE out of three ways Why We Take Risks?
It’s the only way to be successful, Not every risk is a good idea, and Effectively managing risk is key.
What are the "Four Main Types of Market Structures"
Perfect competition, Monopolistic competition, Oligopoly, and Monopoly.
According to the text, what defines a "family unit" besides blood relation?
Shared common values, living together, or being a close-knit circle of friends.
What determines if a product stays on the market in the long run?
Whether or not consumers continue to buy it.
What does a person weigh before deciding a risk is "worth it"?
They compare the possible gain against what they have to give up.
What are the FOUR Classifications of Business Risk
Hazard, Operational, Strategic, and Financial.
What are TWO out of the five ways Competition Benefits Customers
Develop new products to meet customers’ needs,
Maintain or improve the quality of existing products,
Provide more and better services,
Provide wider selections of goods or services,
and Keep prices down