Management And Economie Flashcards
Why does a business need to be managed
In order to earn profit a business needs management skills to plan organize and control activities of the business and to find and develop employees
What is economics
Is the study of how resources are distributed for the production of goods and services within the social system
Name the 3 resources and what they are
Natural resources - thing not made by humans like land minerals etc
Human resources - physical and mental abilities people use to produce goods
Financial resources - funds used to acquire the natural and Human Resources
What should economic systems know
What good and services are needed and will it satisfy the customer
What resources are needed who and will produce them and how
How these good and services will be distributed
What is communism market system
Most of the business are owned and operated by the government which controls competition with limited choices of goods and services and in terms of employment options there is little choice
What is Socialism market system
The government owns most of the basic industries like water or electricity with they being privately owned businesses as well. Profit earned may be reinvested in the businesses of private ownership. consumers have choice of good and services priced by supply and demand with more choices in careers
What’s is a Capitalism market system
Individuals own and operate all businesses encouraged by market forces and government regulations and owners get to keep profits after paying taxes. Consumers have a wider choice of services and goods determined by supply and demand with unlimited choices in careers.
What are the 2 sub groups of capitalism
Pure capitalism (free market) - all decisions are made without government involvement
Modified capitalism - the government intervenes and regulates business to some extreme
What is a mixed economy market system
It is made up from more than one economic system
What is free enterprise system
Provides opportunity for a business to succeed or fail on the basis of market demand. With those with efficient products surviving as consumers take their business to firms with more competitive products.
What is demand
Number of good and services that a consumer is willing to buy at different prices at a specific time
What is supply
The number of goods and services a business is willing to sell at different prices at specific times.
What is equilibrium price
The price at which supply from a business is equal to the amount of products that a consumer are will to buy
What is pure competition
When many small business sell one standardised product with no difference. The prices are determined solely by the forces of supply and demand
What is monopolistic competition
When business sell similar products with slight differences such as warranty or name but all satisfying the same consumer needs
