Economy Profit Capitalism Flashcards
What is Economy? What is Profit? What is Capitalism?
What is Economy?
The way people deal with the creation and distribution of wealth
Microeconomic
The study of the decisions made by individuals in business
Macroeconomics
The study of the national/global economics
What is a free market
A system where businesses decide what to produce and buy- The market determines prices and quantities sold.
What is Command Economy?
A economic system in which the government decides what goods and services will be produced and who owns and controls s the major factors of production
What are the two forms of a command Economy?And what is the diff Between the two?
The government owns all~Communism
The government owns key industrial resource~Socialism
WHO DO WE THINK OF WHEN WE TALK ABOUT MIXED ECONOMY?
John Maynard
What is a Mixed economy?
an economy that exhibits elements of both capitalism and socialism
What is CAPITALISM?
The economic system in which individuals own and operate the majority of business that provides goods and services
WHO DO WE THINK OF WHEN WE THINK OF CAPITALISM?
ADAM SMITH
There should be NO GOVERNMENT interference in the economy? This was believed by?
Adam smith
Profit is
What remains after all expenses have been deducted from sales revenue
Profit negatively? Term?
Loss
Profit = ? - expenses
Sales revenue
Invisible Hand
Describes how an individuals own personal gain can benefit others and Nations Economy
