Circular Flow of Income
These are the limited resources that cannot be reproduced. For example: gold and petroleum.
What are Natural Non-Renewable Resources?
The study and behavior of economic agents as a whole.
What is macroeconomics?
This refers to the relationship between the things produced and the production factors employed.
What is productivity?
This economic agent produces goods and services.
What is a business?
These are sources of financing used to complete work. Examples include a bank loan or shares in the stock market.
What is financial capital?
These protagonists of the economy decide what to produce, how and for whom to produce it.
What are economic agents?
This system includes a lack of freedom of choice and incentives but everyone's basic needs are met.
What is a Planned economy/commanded economy?
This is obtaining the same quantity or more of the product with less factors of production.
What is technological efficiency?
The function of this department is to select workers and keeps them motivated.
What is human resources?
This is what I get for working 9:00-17:00 in an office.
What is a salary?
These are the factors of Production.
What are Land, Labor, Capitol & Enterprise?
The Public sector has the majority of regulatory power in this system.
What is a planned economy/commanded economy?
This is done to increase productivity and avoid time being wasted.
What is division of labor.
This is to bring final products to where they are sold
What is the commercial function?
These expenses change when the amount of production changes.
What are variable costs?
This public sector regulates the activity of the country. It focuses on improving wellbeing while both consuming and producing.
What is the State?
Within this system there is little interference from the regulating public sector.
What is a Market Economy?
This shows the maximum quantity of goods and services that can be produced with a determined limit of resources and technology.
What is the production possibility frontier?
These are the components of a business.
Human component -Workers, vendors, clients, etc.
Organization- assigns responsibilities
Economic Environment- (laws, competing businesses)
An example of this type of expense is paying for the electricity for the lights while building tables.
What is an indirect cost?
This sector includes labor focusing on converting initial materials into products.
What is the secondary sector?
These are three characteristics of a mixed market economy.
public and private property, prices determined by supply and demand, The state intervenes to correct the faults of the market and distribute wealth (those who have more resources pay taxes and those who have less receive aid)
These are the disadvantages of the division of labor
routine and repetitive work
generates interdependence.
These are the objectives of businesses.
Maximize benefits
grow and expand
adapt to the environment
Diversify products and gain the trust of clients
increase productivity
Sales = total costs
What is the break-even point?