Business
List the four functions of business.
Production, finance, marketing, management
What are market forces?
Economic factors that affect the price, demand, and availability of a good or service.
what's the difference between Traditional Economy and Command Economy?
A traditional economy is one in which economic decisions are based on a society's values, culture, and customs. In a command economy, the government makes all the economic decisions for its citizens.
Differentiate between goods and services
A good is a physical item that can be touched. A service is an action or task that is performed, usually for a fee.
What is the demand curve?
Shows that consumers are willing to buy fewer goods at higher prices.
List the five types of utility provided by business.
Form, place, time, information, possession
What is the basic economic problem?
Individuals, businesses, and governments must constantly make choices about using limited resources to satisfy unlimited wants.
Is there a difference between market economy and mixed economy?
Yes, market economy is one in which individuals are free to make their own economic decisions. Mixed economy, both the government and individuals make decisions about economic resources.
Identify three market forces that impact business.
Price, demand, and availability of a good or service
What are economic benefits?
Gains that are measured in terms of money.
What are three economic benefits generated by businesses in an economy?
Profit, wages, and standard of living.
What is the main reason business operates?
To earn profit.
Explain the importance of economics.
It's a science that examines how goods and services are produced, sold, and used.
Define business and its benefits.
Business creates markets, but the main reason is to earn profit.
Describe the four economic systems.
Economists classify economic systems as being a traditional ,command, or market economy.