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67 Cards in this Set
- Front
- Back
What is a Business?
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A business in an Organization that seeks to earn Profits by providing goods and services.
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What is Profit?
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Profit is what remains after a business's expenses are subtracted from its sales revenues.
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what is an Economic System?
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an Economic System is the way in which a nation allocates its resources among its citizens
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what are the 5 factors of production?
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the factors of production are the resources used to produce goods and services , they are Labour, capitol, entrepreneures, natural resources, and information technologies
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What is Labour?
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Labour is the mental and physical training and talents of people; sometimes called human resources.
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What is Capital
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The funds needed to operate an enterprise
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who is an entrepreneur?
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An individual who organizes and manages labour, capitol, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.
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what are Natural Resources?
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they are items used in the production of goods and services in their natural state.
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what are information resources?
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information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals.
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what is a command Economy?
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it is an economic system in which government controls all or most factors of production, and makes all or most production decisions.
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What is a Market Economy?
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it is an economic system in which individuals control all or most factors of production and make all or most production decisions.
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Communism
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A type of Command economy in which the government owns and operates all industries.
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What is Socialism?
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a kind of command economy in which the government owns and operates the main industries , while individuals own and operate less crucial industries
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Define "market"
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it is an exchange process between buyers and sellers of a particular good or service
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what is the input market?
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firms buy resources that they need in the production of goods and services
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what is the output market?
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firms supply goods and services in response to demand on the part of consumers.
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What is Capitalism?
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an economic system in which markets decide what when and for whom to produce goods.
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What is a mixed market economy?
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an economic system with elements of both a command economy and a market economy, the most common economic system used today in most nation's economy.
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What is Nationlization?
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the transfer of activities from private firms to the government.
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what is deregulation?
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a reduction in the number of laws affecting business activity
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How do governments influence businesses?
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the government influences businesses by acting as a customer, competitor, regulator, taxation agent, and as a provider of incentives and financial assitance.
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Canadian radio television and telecommunication commission
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regulates and supervises all aspects of the canadian broadcasting system
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Canadian Wheat Board
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regulates the price farmers recieve for their wheat
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Hazardous Products Act
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regulates banned products and products that can be sold but must be labelled hazardous
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Tobacco Act
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Prohibits cigarette advertising on billboards and in retail stores, and assigns financial penalties to violators
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Weights and Measures Act
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Sets Standards of accuracy for weighing and measuring devices.
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Textile Labelling Act
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Regulates the labelling, sale, importation, and advertising of consumer textile articles
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Food and Drug Act
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Prohibits the sale of food unfit for human consumption and regulates food advertising.
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Canada Water Act
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Controls water quality in fresh and marine waters of Canada
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Fisheries Act
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Regulates discharge of harmful substances into water
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Enviromental Contaminants Act
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establishes regulations for airborne substances that are a danger to human health or to the environment
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Revenue Taxes
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Taxes whose main purpose is to fund government services and programs.
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Progressive Revenue Taxes
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Taxes levied at a higher rate on higher income taxpayers and at a lower rate on lower income taxpayers
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Regressive revenue Taxes
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Taxes that cause poorer people a higher percentafe of income than richer people pay.
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Restrictive Taxes
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Taxes levied to control certain activities that legislators believe should be controlled.
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Lobbyist
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a person hired by a company or an industry to represent its interests with government officials
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Trade Associations
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An organization dedicated to promoting the interests and assisting the members of a particular industry
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Market
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An exhange process between Buyers and sellers of a particular good or service
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Demand
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The willingness and ability of buyers to purchase a product or service
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Law of Demand
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the principle that buyers will purchase more of a product as price drops
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law of Supply
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The principle that producers will offer more of a product as a price rises
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Demand and supply schedule
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Assessment of the relationships between different levels of demand and supply at different price levels
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Demand Curve
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Graph showing how many units of a product will be demanded (bought) at different prices
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Supply Curve
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Graph sowing how many units of a product will be supplied at different prices
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Market Price (Equilibrium price)
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Profit Maximizing price at which the quantity of goods demanded and the quantity and the quantity supplied will be equal
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Surplus
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situation in which quantity supplied exceeds quantity Demanded
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Shortage
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situation in which quantity Demanded exceeds quantity supplied
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Private Enterprise
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An Economic system characterized by private property rights , freedom of choice, profit and competition
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Private Property
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ownership of the resources used to create wealth is in the hands of individuals
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Freedom of Choice
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You can sell your labour to any employer you choose, you can also choose which products to buy and producers can usually choose whom to hire and what to produce
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Profits
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the lure of profits and freedom, leads some people to abandon the security of working for someone else and to assume the risks of enterpreneurship
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Competition
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the vying amond businesses in a particular market or industry to best satisfy consumer demands and earn profits
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Perfect competition
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A market or industry characterized by a very large number of small firms producting an identical product so that none of the firms has any ability to influence price.
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Monopolistic Competition
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A market or industry characterized by a large number of firms supplying products that are similar but distinctive enough from one another to give firms some ability to influence price.
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Oligopoly
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a market or industry characterized by a small number of very large firms that have the power to influence the price of their products and or resources.
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Monopoly
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a market or Industry with only one producer, who can set the price of its products and or resources
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Natural Monopoly
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A market or industry in which having only one producer is most efficient because it can meet all consumer's demand for the product
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Industrial Revolution
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A major change in goods that began in England in the Mid Eighteenth Century and was characterized by a shift to the factory system, mass production, and specialization of labour
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Factory System
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A process in which all the machinery, materials , and workers required to produce a good in large quantites are bought in one place
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Mass Production
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The manufacture of products of uniform quality in large quantities
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Specialzation
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The breaking down of complex operations into simple tasks that are easily learned and performed
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Entrepreneurial Era
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the period during the last half of the nineteenth century when businesses operated with very little governement, regulation and businesses made large profits, often at the expense of consumers.
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Production Era
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the period during the early twntieth century when businesses focused almost exclusivly on improving prodictivity and manufacturing methods.
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Sales Era
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The period during the 1930s and 1940s when businesses focused on sales forces advertising , and keeping products readily available
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Marketing Era
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the period during the 1950s and 1960s when businesses began to identify and meet consumer wants in order to make a profit
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Finance Era
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The period during the 1980s when there were many mergers and much buying and selling of business enterprises
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Global Era
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the period during the late twentieth and early twenty first century when a truly global economy emerged
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