EC-907
The most common medium of exchange in modern economic systems is
money
Manufactured or constructed items that are used to produce goods and provide services
Capital goods
In business terms, what is profit?
A monetary reward
Tornadoes, earthquakes, and blizzards
hazard risk
Online banking services
non price competition
Government owns some basic means of production, but there is private ownership of business under
socialism
People who work to produce goods or services
Human resources
If expenses are greater than income, there’s no
reward
Possibility of loss, no change, or gain
speculative risk
Advertising the largest assortment of shoes
nonprice competition
An example of a country that has a socialist command economy is
Sweden
Items that are found in nature and used to produce goods and services
Natural resources
The money spent to run a business is called
operating expense
Human errors
operational risk
Wendy’s and Burger King
direct competition
A country that currently has a communist command economic system is
North Korea.
Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid
Profit
Besides motivation, what does profit provide business owners in particular?
Satisfaction
Reputation damage
strategic risk
Ten-year warranties on new automobiles
indirect competition
In a socialist economic system, who tends to answer the question of how products will be produced?
Government and business
An economic system in which individuals make most economic decisions but some government control and ownership exist
Mixed system
Profitable businesses often help improve their local communities by
contributing to charitable causes
Rivalry for the sale of goods or services
competition
January white sales
price competition