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Textbook notes Ch.1-Understanding the Canadian Economy

Management (MGT)
Course Code
Chris Bovaird

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An organized effort, in which the main goal is profit by providing g/s (things that
customers are willing to pay).
Organized Effort:
Soccer Team, i.e. hire leagues, schedule team, UT, choir. They all provide services but
they are not businesses, even though we pay for those services.
Difference: Main motive is profit, unlike churches and schools.
- rewards the owner for investing time + $
Expenses: the money a business spends producing its goods and services and generally
running the business
Revenues: the money a business earns selling its products and services
- Earn profit Æ what consumers want or need, identify unmet consumer needs or better
ways to satisfy them Æ success [someone who can sport a promising opportunity and
develop a good plan for capitalizing on it can succeed]
Hoping to get some extra left after providing, advertising g/s. Diff. b/w rev. or sales and
costs or expenses. Fundamental reason of existence. Enhances production, consumption
and income, therefore also the standard of living.
Economics: study of: how best to produce things and how best to distribute wealth
Factors of Production:
Natural Resources: items used in the production of goods and services in their natural
state, including land, water, mineral deposits, and trees. Materials to be part of or for the
production of g/s
Labour: aka Human resources, mental and physical capabilities
Capital: Financial resources needed to operate an enterprise, ie personal investment,
investors, revenue, money, or the machines and technologies that money can buy
Entrepreneurs: The people who assemble and organize the other factors of production,
the individuals who make it all happen but risk failure. Those that have a vision and are
willing to take risks
Information resources: info such as market forecasts, economic data and specialized
knowledge of employees that is useful to a business and that helps it achieve its goals
economic questions:
What should we make?
How best to make it?
How best to share it?
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