Chapter 1-5 Flashcards
5 factors of production
1) Labour
2) Capital
3) Entrepreneurs
4) Natural Resources
5) Information
2 types of economic systems that manage the factors of production in different ways.
Command Economics and Market Economics
6 ways that governments influences business by the role they play
1) Government as a customer
2) Government as a competitor
3) Government as a regulator
4) Government as a taxation agent
5) Government as a provider of incentives and financial assistant
6) Government as a provider of essential services
3 ways of how businesses influence government
1) Lobbyists
2) Trade associations
3) advertising
4 required elements of a private enterprise system
1) Private Property
2) Freedom of choice
3) Profits
4) Competition
4 degrees of competition in a private enterprise system
1) Perfect Competition
2) Monopolistic Competition
3) Oligopoly
4) Monopoly
2 key goals of the Canadian economic system
1) Economic growth
2) Economic stability
4 phases of the business cycle
1) peak
2) recession
3) trough
4) recovery
3 factors that threaten economic stability
1) Inflammation- prices increase
2) Deflation- prices decrease
3) Unemployment
4 categories of unemployment
1) Frictional- temporary out of work
2) Seasonal- seasonal work
3) Cyclical- downturn in the business cycle
4) Structural- skills not in demand
2 sets of policies used by federal government to manage the Canadian economic system
1) Fiscal Policies- government collect and spend revenues
2) Monetary Policies- government controls the size of the nations money supply
5 important sources of competitive pressure (Porters 5 forces)
1) Industry Rivalry —> 2)Bargaining Power of supplier
- –> 3)Bargaining Power of consumer
- –> 4)Threat of New entrants
- –> 5)Threat of substitutes
3 types of mergers which is a consolidation of 2 firms
1) Horizontal merger- same industry merger
2) Vertical merger- merge with supplier or customer
3) Conglomerate merger- Unrelated merger
3 broad categories for classifying managerial ethics
1) Behaviour towards employees
2) Behaviour towards the organization
3) Behaviour towards other economic agents
4 ethical norms available to assess ethical behavior
1) Utility: does a particular act optimize what is best for those who are affected by it.
2) Rights: Does it respect the rights of the individuals involved.
3) Justice: is it consistent with what we regard to be fair.
4) Caring. Is it consistent with peoples responsibilities to each other.
5 stakeholder groups that most companies strive to be socially responsible to
1) Customers
2) Employees
3) Investors
4) Suppliers
5) Local communities