MGTA01H3 Study Guide - Midterm Guide: Planned Economy, Economic System, Purchasing Power Parity
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MGTA01H3 Full Course Notes
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Document Summary
Business - an organization that seeks to earn profits by providing goods and services. Profit - the money that remains after a business"s expenses are subtracted from its revenues. Expenses - the money a business spends producing its goods and services and generally running the business. Revenues - the money a business earns selling its product and services. Economic system the way in which a nation allocates its resources among its citizens. Factors of production the resources used to produce goods and services: labour, capital, natural, entrepreneurs. Labour the mental and physical training and talents of people also referred to as human resources. Capital the funds needed to operate an enterprise. Entrepreneur an individual who organizes and manages the factors of production in order to produce goods and services. Natural resources items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees.
