EC-907
Command, Traditional and market ___
Individuals and businesses decide what goods and services will be produced, how they will be produced, and where those products or services will go to.
What is a Private Enterprise Economic System?
Income - expense= ____
What is Profit?
Events that businesses encounter like hazard, operational, strategic, and financial.
What are Business Risks?
The rivalry between businesses where they try to attract limited customer dollars.
What is Competition?
Wants are unlimited, but resources are not.
Economic Systems are interdependent.
What are reasons for economic systems?
The desire to make a profit.
What is Profit Motive?
Income from sales - cost of goods = _______
What is Gross Profit?
the four ways to handle a risk
What is: avoiding, preventing, transferring, and/or retaining?
Businesses compete equally and charge the same price; selling identical products to many buyers.
What is Perfect Competition?
A system where the same products have been produced for generations, with the same materials, and is shared with the community without a set price/competition.
What is a Traditional Economic System?
Competition, scarcity (supply), finite money, laws.
What are Limits to Economic Freedoms?
Gross profit - operating expense = ____
What is Net Profit?
Providing safety measures, training, credit, changes.
What is Preventing Risk?
The type of environment that businesses operate in.
Market Structure
A system where the government has a lot of say in what is produced, how it is produced, and who will produce the goods or services.
What is a Command Economic System?
Businesses decide what they wish to produce, what resources to use, what prices they will charge, and how their goods and services will be marketed.
What are Economic Freedoms?
The economy, demand, and chances.
What are External Influences of Profit?
A risk that has no loss or loss, versus, a risk that could have no change, loss, or gain.
What is Pure vs Speculative risk?
In order for businesses to beat competitors, they must produce and sell ___
What is Efficiency?
A system where the government has little to no input to operation, and the business itself decides what will be produced, and how, and who will work for and purchase the goods.
What is a Market Economy?
A limited amount of government control, with individuals and businesses making primary decisions.
What is a Mixed System?
Expenses and pricing.
What are Internal Influences of Profit?
The fading away of products as new ones are introduced.
What is Obsolescence?
Society benefits from competition when they receive __________
What is a High Standard of Living?