Economics: Key Concepts, Business Models, and Economic Systems

Private Enterprise

Free, NOT govt. controlled, private property

Government & Business Relationship

Protector, regulator, & provider

Nature of Taxes

Mandatory payments

GDP (Gross Domestic Product)

Total value of all final goods

Business Cycles

Impact business activity by alternating sales, production, investment, & employment

Major Trade Alliances

Reduce tariffs & barriers, open new markets, alter supply chains

Requirements for International Business Travel

Valid passport, maybe visa, sufficient funds, potentially vaccination records

Economic Goods vs. Services

Physical vs. Non-Physical items you own vs. actions that are provided

Economic Resources

Land (natural resources), labor, capital (tools/machines) & entrepreneurship used to produce goods & services

Economics

The study of choices made due to scarcity, focusing on producing, distributing, & consuming goods & services

Economic Utility

Enhances a product's value

Function of Prices

Competition, value, labor worth

Different Business Activities

Operating, investing, & financing

Types of Business Models

B2B: business to business, B2C: business to consumer, C2C: consumer to consumer

Profitability Model

Shows the various ways profit comes from production, advertising, commission

Organizational Design of Business

Includes different departments like CEO, specialization, departmentalization, formalization, chain of command

Business Ethics

Following rules & showing honesty + morals, setting good standards

Economic Systems

How societies produce, distribute, consume goods; includes traditional, command, market, mixed