EC-907
What is "For whom to produce?
Every economic system must answer three questions: What to produce, How to produce, and this third question.
What is free enterprise?
The private enterprise system is often called this two-word term, where businesses operate with minimal government interference.
What are economic goods
Tangible physical objects that can be manufactured, bought, and touched, such as clothing or electronics.
What is scarcity?
The basic economic problem that occurs because human wants are unlimited while available resources are limited.
What is competition?
The rivalry among businesses to attract customers and generate profit.
What is a traditional economy?
In this type of economic system, decisions are based on customs, history, and time-honored beliefs passed down through generations.
What is private property
This key right in a private enterprise system allows individuals to own, use, and sell tangible and intangible assets as they choose.
What are economic services?
Intangible activities or performances provided by individuals or businesses, such as haircuts or medical checkups.
What are natural resources?
Economic resources provided by nature
What is direct competition?
Competition between two or more businesses offering nearly identical products to the same target market
What is a command economy
In this economic system, the government controls the factors of production and makes all major economic decisions.
What is the profit motive
The monetary incentive that encourages entrepreneurs to take financial risks to start and run a business.
What are consumer goods
Products purchased by individuals for personal, household, or recreational consumption.
What are human resources
The physical and mental human effort used to produce goods and services.
What is indirect competition?
Competition between businesses offering different products that satisfy the same basic consumer need,
What is a mixed economy?
This economic system combines elements of free market enterprise with government regulation and public welfare programs.
What is the price system
In a private enterprise system, this mechanism uses consumer demand and supplier availability to signal product value.
What are industrial goods
Goods purchased by businesses to use in producing other goods or operating their business
What are capital resources
Man-made tools, machinery, equipment, and buildings used in the production process.
What is non-price competition?
Competing on factors other than price, such as product quality, customer service, warranties, and branding.
What is the "invisible hand"?
this economic concept describes the unobservable market force that drives supply and demand to reach balance in a free market.
What is laissez-faire?
term meaning "let it be" or "leave it alone," describing a pure economic environment with zero government intervention.
What are noneconomic goods
Unlike economic goods, these items exist in unlimited supply and carry no monetary cost.
What is entrepreneurship
The factor of production that combines natural, human, and capital resources while taking financial risks to form a new enterprise.
What is a monopoly?
A market structure in which a single firm dominates the market, offering a unique product with no close substitutes and high barriers to entry.