EC-907
Handles its economic decisions and solves its economic problems
What is an economic system in a country?
The three basic questions of a economic system that should be answered
monetary reward business owners receive in return for taking the risk involved in starting a business.
What is a profit
the possibility of loss (failure) or gain (success) inherent in conducting business. With free enterprise
a type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars.
natural resources, human resources (including entrepreneurship), and capital goods—manufactured or constructed items used in production.
What do economic resources include
price determines what consumers buy, which jobs they will take, the success or failure of businesses, and the types of products that will be produced.
why is A private enterprise economy is often called a price-directed system
The desire to make a profit
What is a profit motive
No business wants its customers or employees to get injured, and safety procedures are an especially important way to reduce that risk.
What is saftey
Discount Coupons
How often do you pick one pizza joint over another because you have a coupon for “buy one pizza, get another for half price”?
arrangements for the buying and selling of goods and services.
What are markets
A entrepreneur
What is someone who is able to go into business themself
Income – Expense = Profit
To ensure a safe environment, businesses try to keep their hallways clear so that people don’t trip. They remove known hazards, inspect equipment regularly, and provide safety training for employees.
What is ensuring saftey
Think of all the sales that businesses use. There are back-to-school sales, Memorial Day sales, BOGO sales, Presidents’ Day sales, and many more.
What are special sales in businesses
producers, consumers, and government.
What do participants of markets include
ndividuals and businesses are the primary economic decision makers, while government helps regulate and control the system.
What is a mixed system
the amount of money a business pays for the raw materials from which it produces goods to sell.
What is the cost of goods
install security cameras, dead-bolt locks, security bars, and burglar alarms—preventing or reducing the possibility of break-ins.
What is security for businesses
ome manufacturers also offer to return part of the purchase price a customer pays for a good or service.
What are rebates
something of value that can be used to obtain goods and services.
What is medium of exchange
rivalry between two or more businesses to attract scarce customer dollars.
What is compettition
all of the expenses involved in running a business.
Operating expenses
Businesses carefully screen all credit applications and follow up on past-due accounts.
What is credit analyzation
businesses rely on nonprice competition.
What happens if prices are all about the same for a product or are not important? What if customers don’t care about discounts and rebates?