Exploring the World of Business and Economics

These flashcards cover key concepts from the lecture notes on business and economics, aimed at preparing for an upcoming exam.

What are the two types of economic systems discussed in the chapter?

Capitalism and command economy.

What must you do to be successful in today's business world?

Be adaptable, understand the market, and continuously improve your skills.

Define 'business' as presented in the lecture notes.

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.

What are the four types of competition?

Perfect competition, monopolistic competition, oligopoly, and monopoly.

What is profit?

Profit is what remains after all business expenses have been deducted from sales revenue.

What is GDP and why is it important?

Gross Domestic Product (GDP) is the total dollar value of all goods and services produced within a country's borders in a specific time period, usually used to gauge the health of a nation's economy.

What are the basic economic questions an economy must answer?

What goods and services will be produced? How will they be produced? For whom will they be produced? Who owns and controls the major factors of production?

What is a command economy?

An economic system where the government decides what goods and services will be produced, how they will be produced, and who owns the major factors of production.

What is a mixed economy?

An economy that exhibits elements of both capitalism and socialism.

What does 'productivity' refer to in a business context?

The average level of output per worker per hour.