Management Lecture Notes - Section 2 Economic challenges

Vocabulary flashcards covering key concepts from Section 2 on economic challenges, including factors of production, economic systems, market structures, and business cycle stages.

Factors of production

Resources used to produce goods and services, including natural resources, capital, human resources, and entrepreneurship.

Natural resources

Resources supplied by nature for production, such as agricultural land, building sites, forests, and mineral deposits.

Capital

Man-made resources used to produce goods and services, including technology, tools, information, and physical facilities.

Human resources

The physical labor and intellectual effort contributed by people in production.

Entrepreneurship

Willingness to take risks to own and operate a business and organize the other factors of production.

Share of employment

The proportion of the population that is employed or how employment is distributed among groups or firms.

Retail trade

The sector engaged in selling goods to consumers; a major area of employment.

Manufacturing

The sector that produces goods; a major area of employment.

Business ethics

Standards of conduct and moral values guiding decisions in the workplace.

Social responsibility

The management philosophy of contributing to the environment, non-profit programs, and the general public.

Macroeconomics

The study of large-scale economic factors such as political, social, and legal conditions (which vary by country).

Private systems

Economic systems characterized by private ownership and market determination of production.

Planned economies

Economic systems where government plans ownership, profits, and resource allocation to meet government goals.

Mixed market

An economy combining private ownership with some government planning and intervention.

Profit

The financial reward earned from producing goods and services after costs; a motive in business.

Government hands-off approach

Limited government intervention in the economy (laissez-faire).

Marketplace competition

Competition among buyers and sellers that helps regulate economic life and prices.

Pure competition

A market structure with many firms selling identical products and price set by supply and demand.

Monopolistic competition

A market structure with many firms selling differentiated products.

Oligopoly

A market dominated by a few large firms.

Monopoly

A market with a single seller who controls prices.

Socialism

An economic system where government owns and operates major industries (e.g., communications). Some private ownership may be allowed.

Communism

An economic system where all property is shared and directed by a strong central government.

Private ownership

Ownership of production by individuals or private firms within an economy.

Economic performance

How business decisions and consumer behavior vary across different stages of the business cycle.

Prosperity

A phase where unemployment is low, consumers are confident, and business expands.

Recession

A period of economic contraction lasting longer than six months.

Depression

An extended and severe recession.

Recovery

The phase of the cycle with declining unemployment and rising business activity.