Profit correct answers revenues - expenses
Factors of Production correct answers resources a business needs to produce g/s
includes; labour, entrpreneurs, natural resources, capital, information
economic system correct answers the way that a nation allocates its resources
command econom...
BUS 200 Midterm || WITH 100% PASSED ANSWERS.
Profit correct answers revenues - expenses
Factors of Production correct answers resources a business needs to produce g/s
includes; labour, entrpreneurs, natural resources, capital, information
economic system correct answers the way that a nation allocates its resources
command economy correct answers government controls all/most FOPs and makes all/most
production decisions
includes communism and socialism
communism correct answers where a government owns/operates all industries
falls under a command economy
ex. Cuba, China
socialism correct answers government owns/operates critical industries
- smaller businesses may be privately owned
- most of gen pop works for the gov
- high taxes
- most of the gov owned businesses aren't efficient
falls under command economy
Market Economy correct answers - Economic basis is supply and demand
- Political basis is capitalism
- Ownership of the factors of production is open
- Buyers and sellers have freedom of choice
- The market is the mechanism for the exchange of goods
includes capitalism and mixed market economies
Capitalism correct answers - markets decide what/where/when and for whom to produce
- Encourages entrepreneurship and private ownership of FOPs
- Encourages profit making as an incentive
- Operates under the concept of supply and demand
privatization correct answers converting government firms into privately owned companies
ex. Canada Post vs UPS
falls under mixed market economies
, Mixed Market Economies correct answers an economic system w elements of command and
market
most nations use this
interactions between bus and gov correct answers - gov as a regulator
- gov as a taxation agent
- gov as a competitor
- gov as a providor of essential services
- gov as a provider of incentives (ex. subsidies)
progressive revenue tax correct answers higher percentage for higher income
revenue taxes correct answers for the purpose of funding programs and services
regressive revenue taxes correct answers same tax rate for everyone (ex. sales taxes)
restrictive taxes correct answers for the purpose of controlling products and revenue
ex. alcohol, tobacco
demand correct answers willingness and ability of a buyer to purchase p/s
law of demand correct answers buyers will purchase more as the price drops
supply correct answers willingness and ability of a producers to offer a p/s for sale
law of supply correct answers producers will offer more of a p as price rises
private enterprise correct answers allows individuals to pursue their own interests with
minimal government involvement
economic system that has private property rights, profits, freedom of choice and competition
perfect competition correct answers Many sellers, almost identical products
Relatively easy to enter the industry
Individual firms don't have control over price
ex. Canadian Agriculture
monopolistic competition correct answers - few to many sellers; product is seen as unique by
some buyers (not all)
- differentiated brands have some (minor) control over pricing
ex. Yeezy white T-shirt vs. Sears white t-shirt
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