- Mixed economies blend market forces with some degree of government intervention in the production and distribution of goods and services. They address issues like national defense, education, and property rights that markets alone may not adequately provide.
- Governments intervene in mixed economies by providing public goods, regulating markets, collecting taxes, and influencing economic outcomes through fiscal and monetary policy. They aim to balance economic freedom with measures addressing social needs.
- Mixed economies are a blend of market and government interference, with governments providing certain services like national defense and education that are difficult for markets to address.
- Governments also create laws to protect property rights and enforce contracts to encourage development.
- Contemporary economies evaluate whether goals are better achieved through open markets or government action, weighing costs and benefits of each approach.
This document provides an introduction to different economic systems, including traditional, command, and market economies. It focuses on describing the US market economy. Key aspects of the US market economy include private property, profit motive, competition between businesses, and freedom of choice for consumers and workers. While the US has a predominantly market-based system, it also has some regulations and government-operated enterprises, making it a mixed economic system. Many formerly command-controlled economies are moving toward market-based systems.
The document provides an overview of different economic systems. It discusses traditional economies, which rely on long-standing customs. It also describes command economies, where a central authority makes decisions, and market economies, where supply and demand determine outcomes. Specifically, it outlines the pyramid structure of command economies, with a supreme planning agency directing specialized agencies and production units. It also discusses Adam Smith's concept of the invisible hand in market economies and how the pursuit of self-interest can benefit society. Finally, it summarizes mixed economies and the characteristics of capitalism, communism, and socialism.
This document defines key economic and business terms including:
- Economics pertains to production, distribution, and use of income, wealth, and commodities. Traditional and command economies base decisions on custom and tradition or a central authority, while free market and capitalist systems involve little government interference and private ownership/profits.
- Consumers use goods and services while entrepreneurs manage businesses to make profits. Capital, natural resources, and human resources are used to produce goods and services and incur opportunity costs.
- Other terms defined include monopoly, interest, corporation, stock, union, distribution, trade, and concepts like vertical integration, kickbacks, trusts, and dividend payments.
The document discusses the conditions of perfect competition in markets. It explains that perfect competition requires: many small businesses with similar products; low barriers to entry and exit; perfect information; and buyers and sellers that are price takers. However, most industries exhibit imperfect competition instead, with market structures like monopoly, oligopoly, and monopolistic competition that have some control over prices. The benefits of perfect competition are economic efficiency and prices that benefit both consumers and businesses.
The document discusses the role of consumers in the economic system and how they make decisions throughout the buying process, including factors like income, spending habits, research and comparison shopping. It also covers consumer rights and responsibilities, and organizations that provide resources and protection for consumers. The overall theme is helping readers understand smart consumer behavior and their role in the marketplace.
This document discusses different types of market competition - perfect competition, monopoly, and oligopoly. It provides definitions and key characteristics of each. A perfect competition market has many buyers and sellers, free entry and exit, perfect information, and no external influences. A monopoly market has one dominant seller and barriers to entry for competitors. An oligopoly market has a small number of large firms that can influence prices through tacit or explicit coordination. The document notes some unethical practices that can occur in oligopoly markets, such as price fixing or market allocation. It concludes that monopoly and oligopoly markets are more likely to violate ethical standards compared to perfect competition.
The document provides an overview of key concepts in economics, including:
1) Economists study how to meet unlimited wants with scarce resources by analyzing trade-offs and opportunity costs.
2) Production possibility frontiers and opportunity costs demonstrate the trade-offs of allocating resources.
3) Different economic systems answer questions about what, how, and for whom to produce in different ways, such as through tradition, government command, or market forces.
4) Supply and demand determine prices in a market economy through the interaction of producers and consumers.
- Mixed economies are a blend of market and government interference, with governments providing certain services like national defense and education that are difficult for markets to address.
- Governments also create laws to protect property rights and enforce contracts to encourage development.
- Contemporary economies evaluate whether goals are better achieved through open markets or government action, weighing costs and benefits of each approach.
This document provides an introduction to different economic systems, including traditional, command, and market economies. It focuses on describing the US market economy. Key aspects of the US market economy include private property, profit motive, competition between businesses, and freedom of choice for consumers and workers. While the US has a predominantly market-based system, it also has some regulations and government-operated enterprises, making it a mixed economic system. Many formerly command-controlled economies are moving toward market-based systems.
The document provides an overview of different economic systems. It discusses traditional economies, which rely on long-standing customs. It also describes command economies, where a central authority makes decisions, and market economies, where supply and demand determine outcomes. Specifically, it outlines the pyramid structure of command economies, with a supreme planning agency directing specialized agencies and production units. It also discusses Adam Smith's concept of the invisible hand in market economies and how the pursuit of self-interest can benefit society. Finally, it summarizes mixed economies and the characteristics of capitalism, communism, and socialism.
This document defines key economic and business terms including:
- Economics pertains to production, distribution, and use of income, wealth, and commodities. Traditional and command economies base decisions on custom and tradition or a central authority, while free market and capitalist systems involve little government interference and private ownership/profits.
- Consumers use goods and services while entrepreneurs manage businesses to make profits. Capital, natural resources, and human resources are used to produce goods and services and incur opportunity costs.
- Other terms defined include monopoly, interest, corporation, stock, union, distribution, trade, and concepts like vertical integration, kickbacks, trusts, and dividend payments.
The document discusses the conditions of perfect competition in markets. It explains that perfect competition requires: many small businesses with similar products; low barriers to entry and exit; perfect information; and buyers and sellers that are price takers. However, most industries exhibit imperfect competition instead, with market structures like monopoly, oligopoly, and monopolistic competition that have some control over prices. The benefits of perfect competition are economic efficiency and prices that benefit both consumers and businesses.
The document discusses the role of consumers in the economic system and how they make decisions throughout the buying process, including factors like income, spending habits, research and comparison shopping. It also covers consumer rights and responsibilities, and organizations that provide resources and protection for consumers. The overall theme is helping readers understand smart consumer behavior and their role in the marketplace.
This document discusses different types of market competition - perfect competition, monopoly, and oligopoly. It provides definitions and key characteristics of each. A perfect competition market has many buyers and sellers, free entry and exit, perfect information, and no external influences. A monopoly market has one dominant seller and barriers to entry for competitors. An oligopoly market has a small number of large firms that can influence prices through tacit or explicit coordination. The document notes some unethical practices that can occur in oligopoly markets, such as price fixing or market allocation. It concludes that monopoly and oligopoly markets are more likely to violate ethical standards compared to perfect competition.
The document provides an overview of key concepts in economics, including:
1) Economists study how to meet unlimited wants with scarce resources by analyzing trade-offs and opportunity costs.
2) Production possibility frontiers and opportunity costs demonstrate the trade-offs of allocating resources.
3) Different economic systems answer questions about what, how, and for whom to produce in different ways, such as through tradition, government command, or market forces.
4) Supply and demand determine prices in a market economy through the interaction of producers and consumers.
This document outlines 12 key elements of economics according to Common Sense Economics. It discusses how incentives matter in economic decision making and that there is no such thing as a free lunch due to scarcity. It also explains that decisions are made at the margin, and that trade promotes economic progress through specialization and comparative advantage. Additionally, it covers how transaction costs can be obstacles to trade, and how prices bring buyers and sellers into balance through supply and demand. Profits direct business activities, and people earn income by providing valuable goods and services to others. Economic progress occurs through investment, innovation, and strong institutions. The invisible hand of the market and supply/demand forces generally promote societal welfare. Secondary effects of actions should also be considered
This document provides an overview of 10 key elements of economics according to Common Sense Economics. It discusses concepts like incentives, trade, profits, scarcity and more. Each element is explained with examples to provide an introductory understanding of basic economic principles and how they relate to everyday life and decision making. The goal is to help the reader "think like an economist" and understand why our economy works the way it does.
The document discusses capitalism and monopolies. It argues that true capitalism has not been achieved due to government intervention and corporate influence over policy. While monopolies can theoretically lower costs, in practice they allow firms to maximize profits without regard for consumers. However, natural monopolies may be inevitable in some industries. The document also notes some technical benefits of monopolies but acknowledges they can misallocate resources and control prices. Overall it questions whether modern economies reflect true free market principles.
This document outlines 10 key elements of economics according to Common Sense Economics by James Gwartney, Richard Stroup, and Dwight Lee. It discusses how incentives matter and affect behavior, the concept of scarcity and tradeoffs, how decisions are made at the margin, how trade promotes economic progress, how transaction costs are an obstacle to trade, how profits direct business activities, how people earn income by helping others, the sources of economic progress, the concept of the invisible hand in market prices, and how actions often have unintended long-term consequences.
Ethical Issues in Capitalism & Market Systemਇੰਦਰਜੀਤ ਖੰਗੂੜਾ
This document discusses ethical issues in capitalism and market systems. Capitalism is defined as an economic system where most production and distribution is privately owned and operated for profit. Benefits include automatic working and economic development, but limitations are accumulation of wealth and human exploitation. A market system guides economic decisions solely through individual interactions with little government intervention. Benefits are variety and competition, while limitations include unemployment and widening inequality. The document stresses that business ethics determine reputation and influence all levels of an organization, and maintaining ethics is important for long-term success.
This document discusses entrepreneurship and economics. It covers different economic systems like command economies and market economies. Market economies use supply and demand to determine prices and are also called free enterprise systems. The document discusses how supply and demand curves work and how competition benefits consumers. Entrepreneurs take risks to make a profit, which can be reinvested in business. Nonprofits also operate businesses but any profits must support their social mission, not individuals. The text then explains how global trade works through importing and exporting and how entrepreneurs can benefit local economies through things like hiring local employees and purchasing local supplies.
Introduction to business |chapter 1 - foundations of business & economics...Shawon Islam Somonoy
This document provides an overview of stockholders versus stakeholders and different economic systems. It defines stockholders as individuals or companies that legally own shares of a corporation, while stakeholders are people who can be affected by an organization's policies and activities, such as employees, customers, and community leaders. It then describes three main economic systems: planned economies where the government controls production and allocation of resources, free market economies where private parties make these decisions through supply and demand, and mixed economies that combine elements of both. The document outlines some advantages and disadvantages of each system type.
The document discusses how the global environment has changed for managers. Previously, managers viewed markets as closed and isolated, but today's environment requires viewing markets as open with global competition. Barriers to trade like tariffs and cultural differences have declined due to improvements in technology and communications. This has opened opportunities for managers to sell and source goods globally but also brings new threats from global competitors. Managers must understand factors in the global task environment like suppliers, distributors, customers, and competitors, as well as forces in the political, economic, and sociocultural environments to effectively compete on a global scale.
This document provides an overview of key economic concepts related to scarcity and choice. It discusses how scarcity leads to opportunity costs and tradeoffs in both individual and societal decision making. Key models introduced include the production possibility frontier to illustrate scarcity and efficiency and comparative advantage to show how trade allows gains from specialization. Economic systems are explored, including command, market, and mixed systems, with markets emerging as the mechanism for coordinating production and distribution in free market economies.
Capitalism is an economic system defined by private ownership of production assets and the operation of markets. It has key features like the existence of companies, a profit motive, competition between producers, freedom of enterprise, private property rights, economic inequalities, and the sovereignty of consumers. Supporters argue it is morally justified based on natural property rights and its economic benefits like efficiency. However, critics argue it leads to problems like inequality, concentration of wealth, and the formation of monopolies and oligopolies that undermine competition.
The document discusses Andrew Carnegie's view that while laws can be hard for individuals, they are best for society as they ensure survival of the fittest. It argues competition laws are needed to support fair competition and healthy market economies, though their enforcement has faced challenges in developing countries. The ultimate goal of competition is to protect consumer interests by ensuring efficient pricing, quality, and market access.
This document provides an introduction to key concepts in economics, including microeconomics, macroeconomics, and industrial economics. It explains that economics involves making decisions about scarce resources to meet wants and needs. Some important economic questions to consider are what, how much, and how to produce goods and services, as well as who gets what. The four factors of production are land, labor, capital, and entrepreneurship. There are also differences between capital goods used to make other goods and consumer goods purchased by individuals.
- Monopolies have market power that allows them to raise prices without losing all demand for their products. Barriers to entry like large capital requirements, patents, and government franchises can prevent competition in imperfectly competitive industries.
- A pure monopoly is a single firm that produces a unique product and faces no competition due to barriers that prevent other firms from entering the market. As the sole producer, the monopoly is the entire industry.
- Monopolies restrict output and charge higher prices than competitive firms, leading to inefficient resource allocation and welfare losses for society. Antitrust policy aims to promote competition and limit monopolies through legislation like the Sherman Act.
The document discusses different types of economic systems including traditional, command, and market economies. It notes that most modern economies are mixed systems that combine elements of each. The United States has a mixed system that is primarily a market economy with some government intervention. It evaluates factors like economic freedom, efficiency, equity, security, employment, prices, and growth. It then describes features of capitalism like private property, voluntary exchange, profit motive, competition, and the roles of entrepreneurs, consumers, and government.
This document outlines 10 principles of economics:
1. People face tradeoffs and make rational decisions based on costs and benefits.
2. Markets can organize economic activity and trade can benefit all parties by allowing specialization.
3. Government policy can improve market outcomes and maintain institutions like courts and police.
Introduction to business (chapter 1 - foundations of business & economics)Shawon Islam Somonoy
This Power-Point presentation is being used by the department of business administration to emphasize about the importance of business.
American International University-Bangladesh.
The document outlines key economic concepts related to business ownership including defining entrepreneurship as operating one's own business and explaining the profit motive. It describes how supply, demand, and scarcity impact businesses and the concept of market equilibrium. The roles of competition and different market structures like monopolies on price are explained. Finally, it summarizes the government's role in business through purchases, taxes, subsidies and regulations to protect consumers and competition.
There are certain advantages along with certain disadvantages of having a monopolistic market.In case of intolerable effects, it becomes necessary for government to keep a check on monopoly power
This document is a PowerPoint presentation summarizing the 10 principles of economics according to the textbook "Principles of Economics" by N. Gregory Mankiw. It discusses key economic concepts like scarcity, tradeoffs, costs and benefits, incentives, markets, market failures, productivity, inflation, and the relationship between inflation and unemployment.
The document provides an overview of key concepts in business studies, including:
1) It discusses the need for business activity to satisfy needs and wants, and introduces opportunity costs and the four factors of production.
2) It categorizes goods and services as durable, non-durable, consumer, and capital goods. It also outlines the primary, secondary, tertiary and quaternary classifications of business activities.
3) It defines public and private sectors, and outlines different forms of private sector organizations like sole traders, partnerships, and limited companies.
The document discusses different economic systems and how resources are allocated in each. A traditional economy relies on customs in allocating resources owned by the entire society. A command economy has the state allocate resources and act as sole producer. A free market economy allocates resources through price mechanisms, with private individuals owning factors of production. A mixed economy combines government provision of some goods/services with private ownership and allocation through market forces.
This document provides an introduction to economics, including its key concepts and the American economic system. It discusses that economics is the study of how people use limited resources to satisfy unlimited wants. It also covers the three basic economic questions of what, how, and for whom to produce. Additionally, it explains the characteristics of the American mixed economy, including limited government role, freedom of enterprise and choice, the profit incentive, private property rights, and competition.
This document outlines 12 key elements of economics according to Common Sense Economics. It discusses how incentives matter in economic decision making and that there is no such thing as a free lunch due to scarcity. It also explains that decisions are made at the margin, and that trade promotes economic progress through specialization and comparative advantage. Additionally, it covers how transaction costs can be obstacles to trade, and how prices bring buyers and sellers into balance through supply and demand. Profits direct business activities, and people earn income by providing valuable goods and services to others. Economic progress occurs through investment, innovation, and strong institutions. The invisible hand of the market and supply/demand forces generally promote societal welfare. Secondary effects of actions should also be considered
This document provides an overview of 10 key elements of economics according to Common Sense Economics. It discusses concepts like incentives, trade, profits, scarcity and more. Each element is explained with examples to provide an introductory understanding of basic economic principles and how they relate to everyday life and decision making. The goal is to help the reader "think like an economist" and understand why our economy works the way it does.
The document discusses capitalism and monopolies. It argues that true capitalism has not been achieved due to government intervention and corporate influence over policy. While monopolies can theoretically lower costs, in practice they allow firms to maximize profits without regard for consumers. However, natural monopolies may be inevitable in some industries. The document also notes some technical benefits of monopolies but acknowledges they can misallocate resources and control prices. Overall it questions whether modern economies reflect true free market principles.
This document outlines 10 key elements of economics according to Common Sense Economics by James Gwartney, Richard Stroup, and Dwight Lee. It discusses how incentives matter and affect behavior, the concept of scarcity and tradeoffs, how decisions are made at the margin, how trade promotes economic progress, how transaction costs are an obstacle to trade, how profits direct business activities, how people earn income by helping others, the sources of economic progress, the concept of the invisible hand in market prices, and how actions often have unintended long-term consequences.
Ethical Issues in Capitalism & Market Systemਇੰਦਰਜੀਤ ਖੰਗੂੜਾ
This document discusses ethical issues in capitalism and market systems. Capitalism is defined as an economic system where most production and distribution is privately owned and operated for profit. Benefits include automatic working and economic development, but limitations are accumulation of wealth and human exploitation. A market system guides economic decisions solely through individual interactions with little government intervention. Benefits are variety and competition, while limitations include unemployment and widening inequality. The document stresses that business ethics determine reputation and influence all levels of an organization, and maintaining ethics is important for long-term success.
This document discusses entrepreneurship and economics. It covers different economic systems like command economies and market economies. Market economies use supply and demand to determine prices and are also called free enterprise systems. The document discusses how supply and demand curves work and how competition benefits consumers. Entrepreneurs take risks to make a profit, which can be reinvested in business. Nonprofits also operate businesses but any profits must support their social mission, not individuals. The text then explains how global trade works through importing and exporting and how entrepreneurs can benefit local economies through things like hiring local employees and purchasing local supplies.
Introduction to business |chapter 1 - foundations of business & economics...Shawon Islam Somonoy
This document provides an overview of stockholders versus stakeholders and different economic systems. It defines stockholders as individuals or companies that legally own shares of a corporation, while stakeholders are people who can be affected by an organization's policies and activities, such as employees, customers, and community leaders. It then describes three main economic systems: planned economies where the government controls production and allocation of resources, free market economies where private parties make these decisions through supply and demand, and mixed economies that combine elements of both. The document outlines some advantages and disadvantages of each system type.
The document discusses how the global environment has changed for managers. Previously, managers viewed markets as closed and isolated, but today's environment requires viewing markets as open with global competition. Barriers to trade like tariffs and cultural differences have declined due to improvements in technology and communications. This has opened opportunities for managers to sell and source goods globally but also brings new threats from global competitors. Managers must understand factors in the global task environment like suppliers, distributors, customers, and competitors, as well as forces in the political, economic, and sociocultural environments to effectively compete on a global scale.
This document provides an overview of key economic concepts related to scarcity and choice. It discusses how scarcity leads to opportunity costs and tradeoffs in both individual and societal decision making. Key models introduced include the production possibility frontier to illustrate scarcity and efficiency and comparative advantage to show how trade allows gains from specialization. Economic systems are explored, including command, market, and mixed systems, with markets emerging as the mechanism for coordinating production and distribution in free market economies.
Capitalism is an economic system defined by private ownership of production assets and the operation of markets. It has key features like the existence of companies, a profit motive, competition between producers, freedom of enterprise, private property rights, economic inequalities, and the sovereignty of consumers. Supporters argue it is morally justified based on natural property rights and its economic benefits like efficiency. However, critics argue it leads to problems like inequality, concentration of wealth, and the formation of monopolies and oligopolies that undermine competition.
The document discusses Andrew Carnegie's view that while laws can be hard for individuals, they are best for society as they ensure survival of the fittest. It argues competition laws are needed to support fair competition and healthy market economies, though their enforcement has faced challenges in developing countries. The ultimate goal of competition is to protect consumer interests by ensuring efficient pricing, quality, and market access.
This document provides an introduction to key concepts in economics, including microeconomics, macroeconomics, and industrial economics. It explains that economics involves making decisions about scarce resources to meet wants and needs. Some important economic questions to consider are what, how much, and how to produce goods and services, as well as who gets what. The four factors of production are land, labor, capital, and entrepreneurship. There are also differences between capital goods used to make other goods and consumer goods purchased by individuals.
- Monopolies have market power that allows them to raise prices without losing all demand for their products. Barriers to entry like large capital requirements, patents, and government franchises can prevent competition in imperfectly competitive industries.
- A pure monopoly is a single firm that produces a unique product and faces no competition due to barriers that prevent other firms from entering the market. As the sole producer, the monopoly is the entire industry.
- Monopolies restrict output and charge higher prices than competitive firms, leading to inefficient resource allocation and welfare losses for society. Antitrust policy aims to promote competition and limit monopolies through legislation like the Sherman Act.
The document discusses different types of economic systems including traditional, command, and market economies. It notes that most modern economies are mixed systems that combine elements of each. The United States has a mixed system that is primarily a market economy with some government intervention. It evaluates factors like economic freedom, efficiency, equity, security, employment, prices, and growth. It then describes features of capitalism like private property, voluntary exchange, profit motive, competition, and the roles of entrepreneurs, consumers, and government.
This document outlines 10 principles of economics:
1. People face tradeoffs and make rational decisions based on costs and benefits.
2. Markets can organize economic activity and trade can benefit all parties by allowing specialization.
3. Government policy can improve market outcomes and maintain institutions like courts and police.
Introduction to business (chapter 1 - foundations of business & economics)Shawon Islam Somonoy
This Power-Point presentation is being used by the department of business administration to emphasize about the importance of business.
American International University-Bangladesh.
The document outlines key economic concepts related to business ownership including defining entrepreneurship as operating one's own business and explaining the profit motive. It describes how supply, demand, and scarcity impact businesses and the concept of market equilibrium. The roles of competition and different market structures like monopolies on price are explained. Finally, it summarizes the government's role in business through purchases, taxes, subsidies and regulations to protect consumers and competition.
There are certain advantages along with certain disadvantages of having a monopolistic market.In case of intolerable effects, it becomes necessary for government to keep a check on monopoly power
This document is a PowerPoint presentation summarizing the 10 principles of economics according to the textbook "Principles of Economics" by N. Gregory Mankiw. It discusses key economic concepts like scarcity, tradeoffs, costs and benefits, incentives, markets, market failures, productivity, inflation, and the relationship between inflation and unemployment.
The document provides an overview of key concepts in business studies, including:
1) It discusses the need for business activity to satisfy needs and wants, and introduces opportunity costs and the four factors of production.
2) It categorizes goods and services as durable, non-durable, consumer, and capital goods. It also outlines the primary, secondary, tertiary and quaternary classifications of business activities.
3) It defines public and private sectors, and outlines different forms of private sector organizations like sole traders, partnerships, and limited companies.
The document discusses different economic systems and how resources are allocated in each. A traditional economy relies on customs in allocating resources owned by the entire society. A command economy has the state allocate resources and act as sole producer. A free market economy allocates resources through price mechanisms, with private individuals owning factors of production. A mixed economy combines government provision of some goods/services with private ownership and allocation through market forces.
This document provides an introduction to economics, including its key concepts and the American economic system. It discusses that economics is the study of how people use limited resources to satisfy unlimited wants. It also covers the three basic economic questions of what, how, and for whom to produce. Additionally, it explains the characteristics of the American mixed economy, including limited government role, freedom of enterprise and choice, the profit incentive, private property rights, and competition.
Brue-Chapter-2.pdf, Lecture slides of Microeconomics book McConnel and Bruessuser535f711
This document provides an overview of economic systems and the market system. It discusses the characteristics of the market system, including private property, freedom of choice, self-interest, competition, markets and prices, specialization, use of money, and an active but limited government. The document also explains the circular flow model which illustrates how households and businesses interact in the product and resource markets. It describes different types of business structures like sole proprietorships, partnerships, and corporations and how they vary in terms of risk and profit.
Economics is the study of how scarce resources are used to satisfy unlimited wants. It examines the choices that individuals, businesses, and governments make when allocating resources. Microeconomics focuses on individual markets and consumer behavior, while macroeconomics looks at whole economies and issues like growth, employment and inflation. Markets coordinate economic activity through prices, while governments provide public goods and address issues like externalities and inequality. Factors of production include labor, capital, land and entrepreneurship. Firms combine these to produce goods and services, while households supply labor and consume output.
The document discusses key economic concepts including scarcity, choice, and opportunity cost. It defines microeconomics as the study of individual decisions in markets and macroeconomics as the study of overall prices, employment, income and production. Factors of production include labor, land, capital and entrepreneurship. Markets coordinate economic activity through price adjustments while command economies rely on central planning.
This document provides an overview of key economic concepts related to markets and the role of government in a market economy. It defines markets and how supply and demand determine prices. It discusses how resources are allocated in a market through consumer demand and business competition. The role of government is to promote efficiency, equity, and macroeconomic stability. Government addresses market failures from imperfect competition, externalities, and public goods provision.
Economic systems decision making chapter2week1anobles
The document discusses different types of economic systems:
1) Traditional economies rely on customs and have stable predictable lives but discourage new ideas.
2) Command economies give central authorities control over decisions but lack flexibility and consumer choice.
3) Market economies allow individual freedom and decentralized decision making which drives variety and innovation but can fail to meet needs and cause uncertainty.
It then evaluates the goals of different systems and the tradeoffs between economic freedom, security, growth and other factors in capitalistic systems.
The document discusses the key aspects of different economic systems and how businesses operate within a market economy. It covers the following main points:
1) There are three basic types of economic systems - traditional, command, and market economies. The US has a market economy also known as capitalism where economic decisions are made by individuals and businesses.
2) Businesses operate in a market economy to make a profit by providing goods and services to consumers. Supply and demand determines prices. Competition and incentives for innovation are important aspects of capitalism.
3) Most American businesses started as sole proprietorships or partnerships and later grew into corporations to raise more money through selling stock and bonds. Corporations function through elected directors and boards.
This document presents information about a mixed economy system. It defines a mixed economy as one with characteristics of both capitalism and socialism, allowing some private business driven by profit as well as government intervention in economic activities. It provides examples of private versus public goods and services. It also outlines features, models, examples of mixed economy countries, pros and cons, differences from capitalism and socialism, and the role of government in regulating a mixed economy.
The document defines different types of economic systems and characteristics of the American economy. It discusses traditional, command, market, and mixed economies. The key aspects of a market economy outlined are private property, profit incentive, freedom of choice, competition, and limited government control. However, the US has a mixed economy with government intervention to ensure economic goals like freedom, efficiency, equity, security, stability, and growth. Individuals have responsibilities in a free market system to support themselves, use education productively, and elect responsible officials.
The document discusses perfect competition and its five conditions: many buyers and sellers, similar products, easy market entry and exit, perfect information, and price-taking behavior. It provides examples of industries that approach perfect competition like agriculture. Perfect competition maximizes economic efficiency but is rare to achieve. Most industries exhibit imperfect competition characterized by monopoly, oligopoly, or monopolistic competition.
The document discusses different types of business organizations including sole proprietorships, partnerships, and corporations. It outlines the key advantages and disadvantages of each structure. It also covers topics like stocks, bonds, market organizations, resolving business disputes, and how wages are determined. Overall, the document provides an overview of fundamental concepts in business and economics.
The document discusses monopoly market structures. It defines a monopoly as a market with a single seller of a unique product, where the seller faces no competition. Key characteristics of monopolies include being the sole price maker, having high barriers to entry that restrict competition, and profit maximization. Sources of monopoly power include economies of scale, technological superiority, and control of natural resources. While monopolies can benefit from economies of scale, disadvantages include higher consumer prices, reduced consumer surplus, and lack of incentives for efficiency. Governments may tolerate monopolies due to difficulties in breaking them up and the potential for regulation to achieve benefits of scale with fair prices.
There are three main types of economic systems: traditional economies, command economies, and market economies. Most modern economies are mixed economies that incorporate aspects of both command and market systems. In a mixed economy, private businesses determine production levels while governments regulate certain industries. Australia has one of the freest mixed economies in the world, with minimal restrictions on private markets and privately-owned industries and businesses.
There are three main types of economic systems: traditional economies, command economies, and market economies. Most modern economies are mixed economies that have characteristics of both command and market systems. In a mixed economy, businesses determine production while governments regulate certain industries and provide rules to protect consumers and workers. Australia has one of the freest mixed economies in the world with minimal restrictions and high levels of private ownership.
Economics is the study of how people get what they want. It includes producing goods/services and distributing them while managing scarce resources and money. There are three main ways of doing business - sole proprietorships owned by one person, partnerships owned by two or more people, and corporations owned by shareholders. Entrepreneurship involves creating new products/services to meet needs and takes risk, which is important for a nation's economy. Consumers play a key role by determining what businesses produce through their purchasing power and creating competition between businesses.
This document provides an overview of economic concepts and the different types and systems of economics. It discusses how economics studies how societies allocate scarce resources to produce goods and services. It defines microeconomics as studying individual agents and macroeconomics as studying aggregate behaviors. It also summarizes the characteristics of a centrally planned economy and a market economy system. The key aspects of a market economy system include private property, markets determining production and prices through supply and demand, and a circular flow of income.
Lesson 5: The Price System and the Mixed EconomyJudy Ann But
This document discusses the price system and mixed economy. It examines how the circular flow of income and expenditures keeps a capitalist economy functioning by allocating resources through prices. While the pure market system has defects like externalities and inequality, the modern mixed economy addresses these through government intervention in markets, provision of public goods, income redistribution, and macroeconomic stabilization. Governments participate in input and product markets, tax households and firms, and provide services to correct market failures and support vulnerable groups.
The document defines key economic concepts such as gross domestic product, the business cycle, inflation, fiscal and monetary policy. It explains that GDP measures total production, the business cycle involves periods of expansion and contraction, and inflation results from too much money supply. Fiscal policy uses government spending and taxes to influence the economy, while monetary policy involves interest rates and the money supply. The document also discusses international trade, noting barriers like tariffs, quotas, and embargoes that countries impose on each other's imports and exports.
The document discusses the concepts of supply and demand. It defines key terms like demand, quantity demanded, demand schedules, the law of demand, elasticity of demand, supply, quantity supplied, supply schedules, and the law of supply. It explains how demand and supply interact to determine equilibrium price and quantity in a market. When demand or supply changes, there is a new equilibrium. The document provides examples of how factors like input costs, number of suppliers, or weather can impact supply.
The document discusses influences on American law including the Code of Hammurabi, Ten Commandments, English Common Law, and Roman Law. It then summarizes different types of laws like common/civil law, criminal/statutory law, administrative law, and constitutional law. Finally, it lists several government agencies and their roles related to law and enforcement.
This document outlines the objectives of NC Competency Goal 5, which is for learners to understand how political and legal systems balance competing interests and resolve conflicts. It discusses methods of resolving conflicts such as debate, compromise, and negotiation. It also explains how the legislative process uses debate and compromise. Additionally, it covers the adversarial nature of the judicial process and roles of different entities in public policy decisions. The document provides information on state and federal court jurisdictions and the criminal trial process.
The document is a learning styles self-reflection inventory that asks the respondent to rate 36 statements about their preferences and interests on a scale of 1 to 5. It then provides a scoring guide to tally the responses under four categories - A, B, C, and D - that correspond to different learning styles. The respondent graphs their totals for each category and identifies their dominant learning style based on the highest score.
Eraser learners tend to be empathetic, intuitive, and learn best through self-reflection and personal attention. They like to make connections and imagine alternative solutions. While they can struggle with details, time limits, and negative feedback, eraser learners enjoy group work, stories with personal feelings, biographies, and activities that allow connecting, sharing, and discussion. Instructional activities for them include cooperative learning, role playing, and music.
This document outlines the learning tendencies of crayon learners. They work best when given opportunities for experimentation, discovery, choice, and competition. They enjoy hands-on activities, brainstorming, and open-ended options. While creative and independent, they may struggle with time management, follow through, and accepting limits. As dynamic learners, they prefer variety, challenges, and thinking outside the box to routine tasks. Instructional activities like brainstorming, problem-solving, and experiments best match their strengths in visual/spatial, musical/rhythmic and bodily/kinesthetic intelligences.
Clipboard learners thrive in structured environments with clear expectations and feedback. They prefer hands-on learning, concrete examples, and step-by-step instructions. Clipboard learners focus on accuracy, planning, rules, and details. While they excel with organization and precision, they may struggle with flexibility, imagination, and understanding different perspectives.
Microscope learners innately value details, logic, and problem-solving. They work best independently with expert sources and references to research information and find answers. Microscope learners tend to be analytical and enjoy challenges, but may struggle with group work, hypothetical situations, and expressing emotions. To develop their skills, they need to learn to consider other perspectives and be less critical in their evaluations of ideas.
The document provides an overview of 101 civics and economic concepts to know for an end-of-course exam, organized into 7 goals. It covers topics related to US and state government, economics, and the US legal system. Key points include the reasons for settling the colonies, how the colonial economies developed differently, influential documents and events in the American Revolution, the structure and principles of US government, how state and local governments operate, economic concepts like scarcity and markets, and components of the US legal system like common law and criminal law.
The Great Compromise and the 3/5 Compromise were both essential compromises that helped the delegates agree on a final Constitution, but I believe the Great Compromise establishing our bicameral legislative branch is still the most important structurally for our government today. The Senate representing states equally and House representing population proportionally was a key foundation for the checks and balances in our system.
The document summarizes the key events that led to the American Revolution. It describes how the French and Indian War increased Britain's debt and caused tensions between the colonies and Britain. It then outlines the major acts passed by Britain, such as the Stamp Act and Intolerable Acts, that angered the colonies by imposing taxes without representation. This led the colonies to unite in protest and hold the First and Second Continental Congresses, culminating in the Declaration of Independence and start of the Revolutionary War.
According to the document, without government there would be chaos and conflict as Thomas Hobbes argued. The document then provides information about the definition and functions of government, including keeping order, passing laws, providing services, and providing security. It discusses the philosophical foundations of the US government based on ideas from John Locke, Montesquieu, and social contract theory. Finally, it summarizes that the US has a representative democracy with power separated among different levels of federal, state, and local government.
This document provides a study guide for a sociology exam, including three sections:
1) A matching section that pairs sociological concepts with their definitions, such as matching functionalism with the perspective that society is a stable system.
2) A second matching section on concepts related to culture, such as matching norms with rules of socially acceptable behavior.
3) A third matching section on concepts related to social structure, such as matching social class with a group with similar levels of wealth and prestige.
This document provides information about the structure and principles of North Carolina's state government. It discusses the three branches of NC and local government (legislative, executive, judicial). It also explains the key principles of popular sovereignty, limited government, separation of powers, and checks and balances. Examples are given of how these principles are reflected in the NC Constitution. The roles and locations of different government bodies like the legislature, governor, and courts are outlined at the state and local levels.
The document contains a list of 54 multiple choice questions about important people, documents, events, and concepts from early American history. The questions cover topics like the colonial governments and economies, causes of the American Revolution, key figures of the founding era, compromises reached at the Constitutional Convention, and components of the U.S. system of government like the branches of power and Bill of Rights.
This document provides a summary of the colonial periods in the South, Middle, and New England regions. The South was dominated by cash crops like tobacco, rice, and indigo grown on large plantations worked by indentured servants and slaves. The Middle colonies had a diverse population and emphasized religious tolerance and pacifism. New England was settled by religious groups seeking freedom of worship; communities were organized around town meetings and churches.
Events Leading To The American Revolution Gallery Crawl InformationMrs. Sharbs
The document summarizes key events leading up to the American Revolution:
1) Religious leaders like Jonathan Edwards and George Whitefield sparked the Great Awakening, helping to religiously unify the colonies in the mid-1700s.
2) Britain passed navigation acts in the 1600s requiring colonies to trade only with Britain, upsetting colonists by the 1750s with strict enforcement.
3) The French and Indian War resulted in British control over North America but left Britain in debt, leading them to impose taxes on the colonies without representation.
4) Growing tensions erupted with the Boston Tea Party, prompting Britain to punish Boston with the Intolerable Acts, uniting the colonies against Britain
2. 3 Economic Questions: What goods and services should be produced? How should these goods and services be produced? For whom should these goods and services be produced?
3. - most contemporary economies are a blend of market with some government interference
5. - there IS a need for certain government interference because some needs and wants of society are difficult to address in the market place (Could the market place provide for national defense or a highway system??)
6. - some needs that markets could meet fall to the government so that ALL members of society can participate (i.e. education)
7. - governments create laws to protect property rights and enforce contracts (Why would someone develop a new product if they couldn’t patent the product?)
8. - societies must look at whether their goals could be better addressed by an open market or government action and look at the opportunity cost for each action (are you willing to pay taxes to fund an army?? Give all people an education??)
9. Adding the government…. the government purchases land, labor, and capital from households in the factor market the government purchases goods and services in the product market (buildings, office supplies, phones, computers, etc.) governments provide goods and services through the factor resources that they combine (i.e. roads) governments collect taxes from both households and businesses
11. Free enterprise: economic system characterized by private or corporate ownership of capital goods; investments are determined by private decision rather than state control
12. Transition: a period of change in which an economy moves away from central planning toward a market-based system
13. Privatized: to make a transition, state firms must sell their businesses to individuals and then allow them to compete with one another in the marketplace
14. THE US HAS A FREE ENTERPRISE SYSTEM!! government interferes to provide services, keep order, and promote the general welfare US law protects private property
16. Perfect Competition Many buyers and sellers in the market sellers offer identical products Buyers and sellers are well informed about products sellers are able to enter and exit the market freely
17. Commodity: a product that is the same no matter who produces it Example: milk, notebook paper, petroleum Perfectly competitive markets are efficient at equilibrium!!
18. Few markets are perfectly competitive because barriers keep the companies from entering or leaving markets easily start-up costs are high many require high degrees of technology
19. Monopoly A market dominated by a single seller - No variety of goods and the seller has complete control over prices - Forms when barriers prevent firms from entering a market with only one seller
20. Natural Monopoly: a market that runs most efficiently when one large firm supplies all of the output Example: public output
21. Government Monopoly: a monopoly created by the government Ex: allowing a natural monopoly to form Ex: patent: inventor of the new product has exclusive rights to sell it Ex: Franchise: contract issued by a local authority that gives a single firm the right to sell its goods within an exclusive market
22. (Remember one of the goals of the government in the US has been to encourage competition in the economy)
23. Antitrust laws: laws that encourage competition in the market (Example: Sherman Antitrust act: banned monopolies and other business combinations that prevented competition 1890)…this act was used to break up companies like AT&T
24. Oligopoly: a market structure in which a few large firms dominate a market (4 largest firms produce 70-80% of the output) barriers can also create oligopolies…like start-up costs and technology
25. Monopolistic Competition: a market structure in which many companies sell products that are similar but not identical
26.
27. Other Vocabulary: Communism: a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government (command) Socialism: a system in which the government owns some factors of production and distributes wealth among citizens (command, mixed) Capitalism: a system in which private citizens own most, if not all, of the means of production and decide how to use them with legislated limits (market)
30. Unskilled labor – requires no specialized skills, education or training Ex. dishwashers, many factory workers, janitors, farm workers
31. Semi-skilled labor – requires minimal specialized skill and education Ex. short order cooks, some construction workers, lifeguards
32. Skilled labor – requires specialized abilities and training to do tasks. Ex. mechanics, bank tellers, plumbers, firefighters, chefs, carpenters
33. Professional labor – demands advanced skills and education. Ex. managers, teachers, bankers, doctors, lawyers, actors, computer programmers
34. Wage discrimination – occurs when people with the same job, same skills and education, same job performance, and same seniority receive unequal pay. Women and minorities are among those who have experienced wage discrimination.
35. Labor Unions – an organization that tries to improve working conditions, wages, and benefits for its members
36. Strike – organized work stoppage intended to force an employer to address union demands
37. Right-to-work laws – this is a measure that bans mandatory union membership. NC is a right-to work state.
38. Collective bargaining – the union and company representatives meet to negotiate a new labor contract
39. To avoid strike, a third party may be called in to settle a dispute: Mediation – neutral mediator meets with each side to try to find some solution. Decision reached by the mediator is nonbinding. Arbitration – a neutral third party reviews the case and imposes a decision that is legally binding for both sides.
41. Sole proprietorship– a business owned and managed by a single individual. According to the IRS 75% of all businesses in the US are sole-proprietorships but these generate only about 6% of US sales.
42. Advantages Easy start-up (business licenses, site permit, name of business) Sole receiver of profit Full control of business Easy to discontinue Not subject to special business taxes
43. Disadvantages Unlimited personal liability Liability is a legally bound obligation to pay debts. Sole proprietors are bound to all of their business debts Limited access to resources Limited life – business lack permanence beyond the life of the sole proprietor
44. Partnerships– a business organization owned by two or more persons who agree on a specific division of responsibilities and profits.
45. Advantages Easy start-up Shared decision making Specialization – each partner can bring his or her talents Larger pool of assets – helpful when the business needs to borrow money Not subject to special business taxes
46. Disadvantages Unlimited liability Each general partner is bound to debt incurred and responsible for paying this debt General partners do not have absolute control over their business Potential for conflict
47. Corporations – a legal entity owned by individual stockholders. Stockholders own shares of stock – a certificated ownership in a corporations. Stockholders are part owners of the corporation.
48. Advantages Limited liability for owners Transferable ownership – owners can sell stock and get money in return Long Life – business does not end with the death of the owners. More potential for growth
49. Disadvantages Expensive and difficult to start up Double taxes Corporations pay taxes on income. Stockholders receive dividends (profits paid out to stockholders) Dividends are also taxed Potential loss of control by the founders – Board of Directors usually run corporations. More legal requirements and regulations
55. Multinational Corporation – a large corporation that produces and sells its goods and services throughout the world.
56. Advantages Provides jobs and products around the world Efforts to spread new technology around the world Increase standard of living in many poor countries Disadvantages Low wages Poor working conditions
58. As an economy becomes more specialized, people give up bartering (exchanging goods and services for other goods and services) for money. Bartering is most commonly used in traditional economies.
59. 3 USES OF MONEY Medium of Exchange- money determines value during the exchange of goods and services Unit of Account- money provides a means for comparing the values of goods and services Store of Value- money keeps its value if stored rather than used
60. 6 Characteristics of Money Durability- must withstand wear and tear that comes with being used over and over. (We have coins and paper money.) Portability- must be easy to transport and exchange Divisibility- must be easily divided into smaller denominations Uniformity- people must be able to count and measure money accurately Limited Supply- supply must be scarce Acceptability- people must be able to exchange money for goods and services
61. MONEY’S VALUE Representative Value- Our money has value because it can be exchanged for something else of value. It does not have value in and of itself (if it did have a value in and of itself, it would be called commodity money). In America, money used to be “backed” by gold or silver, but this went out in the 1930s. Fiat Money (also called Legal Tender)- our money is valuable because our government says it is valuable.
63. Federal Reserve System (Fed) – our nation’s first central bank Created in 1913 by the Federal Reserve Act System is created of 12 regional Federal Reserve Banks throughout the country. NC is part of the Richmond Federal Reserve District Federal Reserve Board – supervises the banks, members appointed by the president
64. Main Tasks of the Fed Supervise and Regulate Banks Implement Monetary Policy Ex. During times of recession and depression the Fed decreases interest rates. (this encourages lending and discourages savings) During times of inflation, the Fed increase interest rates. (this encourages savings and discourages lending)
65. Main Tasks of the Fed Control the amount of currency that is made and destroyed on a daily basis Set required reserve ratio for demand deposits Change the discount rate – interest that commercial banks pay the Federal Reserve
68. Early Banking in the US Very informal banking A merchant would allow customers to deposit money and charge a small fee But this was not always safe… what if the merchant goes out of business or is not trustworthy?
69. Two Views of Banking Federalists (Alexander Hamilton) Anti-Federalists (Thomas Jefferson) Centralized banking was necessary Hamilton proposed a national bank issue a single currency monitor other banks throughout the country manage the federal government’s funds Decentralized banking system Banks should be created and operated by the states
71. Storing Money- banks provide a safe, convenient, insured place to store money Federal Deposit Insurance Corporation (FDIC)- created in 1933 to insure customer deposits if a bank fails (up to $250,000 per account)
72. Saving Money- banks provide 4 ways to save money saving accounts checking accounts money market accounts – money lent to the bank for a short period certificates of deposit (CDs) – money lent to the bank for a longer period of time.
73. money held in a checking account is a demand deposit, because checks are paid “on demand”; CDs are time deposits, because the money cannot be withdrawn immediately without penalty
74. Loaning Money- banks provide loans, and make money by charging the borrower interest
75. Banks use fractional reserve banking- meaning that banks only keep a fraction of funds on hand and lend the remainder. The Federal Reserve establishes the required reserve ratio, or the fraction of deposits that must be held in reserve.
76. Credit Cards- banks issue credit cards (a card entitling its holder to buy goods and services based on the holder’s promise to pay later), and make money by charging interest
77. Collateral- property used to secure a loan. Lenders require collateral to ensure they will not lose money on defaulted loans.
80. Savings and Loans- originally created when members deposited funds into a general fund and then borrowed money to buy their own homes; now serves many of the same functions of a bank
81. Credit Unions- cooperative lending associations for particular groups (i.e. state employees), usually small, specialize in home mortgages and car loans, some provide checking/saving
83. Buying Stock: Corporations sell stock to raise funds. Stock represents ownership in the corporation and is issued in portions called shares.
84. Stockholdersmake money through: dividends- a portion of a corporation’s profit, usually paid out quarterly capital gains- money made when an investor sells stock for more than he/she paid for it and lose money through: capital loss- money lost when an investor sells stock for less than he/she paid for it or when a company doesn’t make a profit, and can’t pay out dividends
85. Stock split- when each single share of stock splits into more than one share. This is done to encourage investors to buy the stock, and generally results in a rise in stock value afterwards.
86. Stock Trade: Stockbrokers- link buyers and sellers of stock; usually work for a brokerage firm that specializes in trading stock. Stock is bought and sold on stock exchanges. Most important in the US: New York Stock Exchange (NYSE)- the country’s largest and most powerful exchange; only for the largest and best-known companies (called blue chip companies) OTCMarket- stock sold electronically Nasdaq (National Association of Securities Dealers Automated Quotations)- the American market for over-the counter trades
87. Daytraders- buy and sell stock rapidly in hopes of trying to make a profit; very risky
88. Measuring the Stock Market: Bull Market- when the stock market steadily rises over a period of time (1920s and 1980s) Bear Market- when stock market steadily falls over a period of time The picture of stock performance can be determined by looking at the Dow Jones Industrial- which represents about 30 large companies, or the S & P 500 (Standard and Poors)- which tracks price changes in 500 companies.
89. Great Crash of 1929- After the market reached an all-time high in 9/1929, over-speculation, inflated stock values, and buying on the margin led to a huge and swift fall in stock values. People panicked and rushed to sell their stocks, further lowering prices, ultimately leading to the Great Crash of 1929, and ushering in the Great Depression. An even larger crash occurred in 1987, but the economy recovered much more quickly.