RSM100Y1 Study Guide - Final Guide: Invisible Hand, Business Ethics, Foreign Exchange Controls
Document Summary
Factors of production: natural resources, capital, human resources, entrepreneurship. Natural resources: agricultural land, building sites, forests, and mineral deposits. Capital: technology, tools, information, and physical facilities. Human resources: production inputs consisting of anyone who works. Private enterprise system (capitalism: economic system that rewards firms for their ability to identify and serve the needs and demands of customers. Capitalism (pes: economic system that rewards firm for their ability to perceive and serve the needs and demands of consumers; also called private enterprise system. Adam smith often identified as the father of capitalism, first described the concept in his the wealth of nations, economy is best regulated by the invisible hand of competition. Rights in a pes: private property, competition, profits, freedom of choice. Consumer orientation: business philosophy that focus first on determining unmet consumer wants and needs and then designing products to satisfy those needs.
