Things You Should Know From Chapter 4 - Things You Should Know From Chapter 4 Definitions Entrepreneurs Business people who accept the risks and

Things You Should Know From Chapter 4 - Things You Should...

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Things You Should Know From Chapter 4Definitions:Entrepreneurs- Business people who accept the risks and opportunities involved in creating and operating new business ventures tend to be rewarded with relatively low tax rates that encourage their activitiesEconomic system- Consists of the structure and processes that it uses to allocate its resources and conduct its commercial activitiesCentrally planned economy- A system in which a nation's land, factories, and other economic resources are owned by the government, which makes nearly all economy-related decisions including who produces what and the prices of products, labor, and capitalMixed economy- Economic system in which land, factories, and other economic resources are rather equally split between private and government ownershipPrivatization- The selling of government-owned economic resources to private operatorsHelps eliminate subsidized materials, labor, and capital formerly provided to government-owned companiesCurtails the practice of appointing manager for political reasons rather than for their professional expertiseMarket economy- Laissez-faire economics- Established in the mid-1700s to national economics called for less government interference in commerce and greater individual economic freedomFree choice- Gives individuals access to alternative purchase optionsFree enterprise- Gives companies the ability to decide which goods and services to produce and the markets in which to competePrice flexibility- Allows most prices to rise and fall to reflect the forces of supply and demandLevel of economic development- Measure of gauging the economic well-being of one nation's people as compared with that of another nation's peopleIt reflects several economic and human indicators, including its economic output, infrastructure, and its people's physical health and level of education
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  • Fall '09
  • ANTHONYGRIBBLE
  • Economics, Free Market, Economic system, Planned economy, centrally planned economy

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