EC-907
What are the 3 types of economic systems?
Traditional, market, command
Who answers the basic economic questions in a private enterprise/market economic system?
Businesses and individuals
In business terms, what is profit?
A monetary reward
People who go into business know that the business may not succeed. This possibility is referred to as business...
risk
What are the 4 types of competition?
direct, indirect, price, nonprice
What are the 3 types of economies (government)?
Capitalism, socialism, communism
The economic basis for the private enterprise economic system is...
the profit motive
If expenses are greater than income, there’s no...
profit
A hurricane that destroys a business is an example of a(n) __________ risk.
hazard
What is a monopoly?
A market structure that consists of a seller or producer where there are no close substitutes
An example of a country that has a market economy is
the U.S.
In a private enterprise economic system, consumers can choose from a variety of products as a result of...
competition
The money spent to run a business is called an...
operating expense
A union strike that stops production at a manufacturing plant is a(n) __________ risk.
operational
What type of competition are Spotify and Netflix?
indirect competition
An example of a country that has a communism command economy is
North Korea
What is a disadvantage of private enterprise system?
Periods of unemployment
Business owners are usually interested in net profit because they want to know what they can...
keep
A garden store customer tripped over a plant, fell, and sued the store for damages. This is an example of a(n) __________ risk.
hazard
What is an oligopoly?
A market structure that consists of a small number of firms, who together have substantial influence over a certain industry or market
An example of a country that has a socialist command economy
Sweden
For what do workers compete in a private enterprise system:
Jobs
If no profit is generated for an extended period, a business must...
shut down
What are the 4 types of risks?
hazard, operational, financial, strategic
What types of competition is a business being open 24 hours a day, 7 days a week?
nonprice competition