Chapter 1 notes (What I used to study for midterm)

19 views3 pages
15 Dec 2010
Chapter 1
Business: An organization that seeks to earn profit by providing a good or a service
Profit: The money that remains after a businesss expenses are subtracted from its revenues
Expenses: The money a business spends producing its good/service and generally while running
the business
Revenue: The money a business earns selling’s its product/service
Economic System: the way in which a nation allocates its resources among the citizens
Factors of Production: the resources used to produce goods and services
1) Labour: the mental and physical training and talents of people; human resources
2) Capital: the funds needed to operate an enterprise
3) Entrepreneurs: individuals who organize and manage labour, capital and natural resources
to produce goods
4) Natural resources: items used in the production of good and services in the natural state
5) Information resources: information such as market forecasts, economic data and
specialized knowledge of employees that helps achieves goals
Types of economics systems:
Command economy: an economics system in which government controls all or most factors of
production and make all or most economics decisions
Communism: economy which government controls all industries
Socialism: economy where government owns major businesses but smaller ones are privately
Market economies: an economic system in which individuals control all or most jobs and make
all/most economic decisions
Market: a mechanism for exchange between the buyers ad sellers of a particular good or service
Capitalism: market economy offering private ownerships of the factors of production and of
profits from business activity
Mixed market economy: economic system with elements of both a command economy and a
market economy – typical of most nations
Privatization: the transfer of activities from the government to the public sector
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.