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Unformatted text preview: 8-28-07 The Economic EnvironmentA1. Role of Profita.Organizations provide a product/service to make a profitb.Profit = Sales come in all costsc.A lot of businesses have a lot of FREEDOMi.Work whenever you wantii.Sell whatever you wantd.Adam Smithi.Father of free trade & capitalismii.Wrote The Wealth of Nations1.Taken for granted now2.Revolutionary back in the dayiii.People do things cause they are mutually beneficialiv.People pursue something for own self-interestv.Everyone works together1.Butcher, Seller, Consumer (Consumer buys product, helps butcher cause he makes money to continue his job)A2. Factors of Productione.Resources used to produce goods & servicesi.Land- natural resourcesii.Labor- Workersiii.Capital- Not money in this sense but equipmentiv.Entrepreneurship- Start your own businessv.Knowledge/Informationf.Compare Japan vs. Russiai.Japan- Less land, more capital that is transferred, more knowledgeii.Russia- More landiii.Japans per capita gross domestic product (per person total market value of the...
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- Fall '07