RSM100Y1 Chapter Notes -Perfect Competition, Monopolistic Competition, Oligopoly
Document Summary
Business: an organization that seeks to earn profits by providing goods and services. Economic system: the way nation"s allocate its resources among its citizens. Factors of production: resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources. Labour (human resources): the mental and physical training and talents of people. Capital: the financial resources needed to operate an enterprise: capital can include personal investment (individual entrepreneurs, business partners, or investors) and revenue. Entrepreneur: an individual who organizes and manages labour, capital, and natural re- sources to produce goods and services to earn a profit but who also runs the risk of fail- ure. Natural resources: production of goods and services from physical resources (land, water, mineral deposits, and trees) Information resources: information (market forecasts, economic data, and specialized knowledge of employees) that is useful to help businesses achieve its goals. Command economy: government controls all or most factors of production and makes all or most production decisions.
