EC-907
It is the economic system where you would most likely start a private venture, driven by supply and demand rather than government central planning.
What is a Market Economy?
In a private enterprise system, this is the term for the unequal way in which money and assets are spread across the population.
What is income/wealth inequality?
In business terms, what is profit?
what is a monetary reward
Tornadoes, earthquakes, and blizzards are all
what are Hazard risks
what kind of completion A bowling alley and a sandwich shop
what is indirect competition
In a market system, these two specific entities—rather than government officials—answer the three basic economic questions of what, how, and for whom to produce.
Who are individuals and private businesses?
Despite giving over $390 billion annually, American companies are not bound by any of these to donate to the less fortunate.
What are laws?
If expenses are greater than income, there’s no
what is reward
what risk is possibility of loss, no change, or gain
speculative risks
what kind of competition is A spring clearance sale
price competition
This "colorful" Adam Smith concept describes the self-regulating nature of the marketplace, working alongside competition and private property rights.
What is the Invisible Hand?
Under the private enterprise system, a company that makes millions has this specific legal entitlement regarding its profits.
What is the right to keep every penny?
In business terms, income is the money
what is received
what kind of risk is Shifting to another person/business
what is transferring risk
what kind of competition is Delivery services to customers
what is non price completion
Entrepreneurs in a market economy must brace for these three specific downsides: a high risk of failure, intense competition, and potential income inequality.
What are problems/disadvantages of a market economy?
Though not a legal requirement, this group often "thinks less" of businesses that fail to make any charitable contributions.
Who is the public?
The amount of money paid for raw materials and products sold is called
what is the cost of goods
what kind of risk is inflation and interest rate fluctuations
what is a financial risk
what kind of completion is Southwest Airlines and United Airlines
what is direct competition
You might avoid these two systems because one involves total government ownership and the other relies on custom, leaving little room for global innovation.
What are Command and Traditional economies?
This is the central ethical debate regarding whether a business has a duty to donate, even if it isn't required by the government.
What is moral obligation?
The money spent to run a business is called
what is operating expense
Rivalry for the sale of goods or services
what is competition
what kind of completion is McDonald’s and AMC Theaters
what is indirect