EC-912
Direct Competition is?
What is Rivalry between or among businesses that offer similar types of goods or services?
North Korea and the Soviet Union are an example of?
Communism
Characteristics of a private enterprise
Freedom in the marketplace
• Private property
• Limited government control
The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as __________ risk.
What is transferring
Gross profit
Money left after cost
of goods is subtracted
from income
What is a monopoly?
A type of market structure is controlled by one supplier, and there are no substitute goods or services readily available
Elements of all economic systems are
Resources
Markets
Participants
Medium of exchange
Economic systems must answer
What goods and services will be produced?
How will these goods and services be produced?
For whom will these goods and services
be produced
When a business keeps a risk because management is unaware of it, the business is _________ the risk
What is retaining
What is profit
Monetary reward
for taking a risk
and investing in
a business
What is the FTC?
What is the Federal Trade Commision?
What are welfare states?
Their governments provide citizens with
free medical care, education, etc.
To pay for these programs, the
government charges high taxes
Disadvantage of private enterprise
Poverty
Unemployment
Unequal distribution of wealth
Businesses can’t control many financial risks, including inflation and interest rate fluctuations. These are ___ financial risks
What is External
Net Profit
Money left after
cost of goods and
operating expenses
are subtracted
from income
What is perfect competition?
A market structure in which there are many businesses selling a lot of identical products for about the same price to many buyers; also known as pure competition
The aborigines of australia is what kind of economy?
What is traditional economy?
Limits of freedom in private enterprise
what are taxes, laws, personal choices
Aside from the 4 different types of risks, all business risks can be categorized as either
What is pure and speculative
Profit general benefits
For consumers’
needs and wants
Better wages
Employment
opportunities
A stronger economy
What are the 4 main types of market structures
Oligopoly, Perfect competition, monopolistic competition, monopoly
What is the role of a government in a market economy?
Produce public goods, lessen the effects of economic problems
How does the private enterprise system
help people and companies in an area
Rewards firms for their ability to identify and serve the needs and demands of customers
What kind of risk would be accurate if the store goes bankrupt
what is pure risk
External factors regarding profit
The economy
Demand
Chance