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28 Cards in this Set
- Front
- Back
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profit
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the difference between a business's revenues and its expenses
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the five factors of production
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the resources that a country;s businesses use to produce goods and services
1. labor 2. capital 3. Entrepenuership 4, physical resources 5. Information resources |
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What are the three basic types of economies
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- planned, market, mixed
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planned market
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- relies on a centralized government to control all or most factors of production
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market economy
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- economy in which individuals control production and allocation decisions through supply and demandd
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mixed market
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has charactersistics of both planned and market economies
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What are the two most basic forms of planned economies
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communism, socialism
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communism
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planned economic system in which the governmnet owns and operates all factors of production
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socialism
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planned economic system in which the government owns and operates only selected major industries
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privatization
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the process of converting government enterprises into privately owned companies
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supply
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the willingness and ability of producers to offer a good or service for sale
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demand
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the willingness and ability of buyers to purchase a good or service
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the law of supply
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producers will offer (supply) miore of a product for sale as its price increases and less as its price decreases
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the law of demand
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buyers will purchase (demand) more of a product as its price drops and less at a product as its price increases
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When plotted on the same graph, the supply curve and the demand curve will normally
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cross one another at some point
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The point at which the supply curve crosses the demand curve is reffered to as the
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equilibrium price or market price
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shortage
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occurs when the quantity demanded exceeds the quantity supplied
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surplus
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occurs when the quantity supplied exceeds the quantity demanded
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Define- Private Enterprise System
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- economic system that allows individuals to pursue their own interests without undue government restrictions
- requires the presence of four elements |
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What are the four elements?
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- private property
- freedom of choice - profits -competition |
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monopoly
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- exists when an industry or market has only one producer
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What are the 6 stages of the United States business history?
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1. Industrial Revolution
2. Entreprenruraul Era 3. Production Era 4. Marketing Era 5. Global Era 6. Internet Era |
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Laissez-Faire
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the philosophy which states that the government should not interfere in the economy, but instead let business function without regulation according to its own natural laws
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Andrew Carnegie
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US Steel
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Andrew Mellon
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ALCOA
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JP Morgan
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Morgan Guarantee and Trust
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John D. Rockefeller
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Standard Oil Company
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Henry Ford
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- Ford Motor Company
- moving assembly line - Model T |
