EC-907
The organized way in which a country handles its economic decisions and solves its economic problems
Basic role of the United States government
What is protect U.S citizens?
In business terms, profit is
What is a monetary reward?
Possibility of loss or no loss
What is pure risk?
The rivalry between two or more businesses to attract scarce, or limited, customer dollars
What is competition?
Government regulates but does not control the economy
What is Market Economic System?
Every society must develop a system for deciding how it will use its resources so that it can
What is meet poeple's needs?
The amount of money paid for raw materials and products sold
What is cost of goods?
Tornadoes, earthquakes, and blizzards
What are hazard risks?
Occurs between or among businesses that offer dissimilar goods or services
What is indirect competition?
Something of value that can be used to obtain goods and services
What is a medium of exchange?
Answers the basic economic questions in a private enterprise economic system
Who is businesses and individuals?
The money spent to run a business is called
What is operating expense?
Fading away over time
What is obsolescence?
Many businesses must sell identical products to many buyers
Economic system based on traditions passed down through the generations
What is a traditional economic system?
A benefit of the freedom to own private property
What is it encourages people to save and invest?
General benefit profit provides
What are better wages?
The physical and social characteristics of the population
What are demographics?
Exists when the market is controlled by one business, and no substitute products are readily available. Competition does not exist
What is a monopoly?
Producers use production methods that enable them to offer products at attractive prices to consumers. Each producer tries to use resources as efficiently as possible to compete with other producers and maximize profits.
What is a Market economy?
Economic basis for the private enterprise economic system
What is the profit motive
Profitable businesses often help improve their local communities
What is contributing to charitable causes.
A promise made to the consumer that a product’s purchase price will be refunded if the product is not satisfactory
What is guarantee?
The type of market structure you’re most likely to find in a private enterprise economy
What is monopolistic competition?