{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Economic Environment

Economic Environment - The Economic Environment A1 Role of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
8-28-07 The Economic Environment A1 . Role of Profit a. Organizations provide a product/service to make a profit b. Profit = Sales come in – all costs c. A lot of businesses have a lot of FREEDOM i. Work whenever you want ii. Sell whatever you want d. Adam Smith i. Father of free trade & capitalism ii. Wrote “The Wealth of Nations” 1. Taken for granted now 2. Revolutionary back in the day iii. People do things cause they are mutually beneficial iv. People pursue something for own self-interest v. Everyone works together 1. Butcher, Seller, Consumer (Consumer buys product, helps butcher cause he makes money to continue his job) A2 . Factors of Production e. Resources used to produce goods & services i. Land- natural resources ii. Labor- Workers iii. Capital- Not money in this sense but equipment iv. Entrepreneurship- Start your own business v. Knowledge/Information f. Compare Japan vs. Russia i. Japan- Less land, more capital that is transferred, more knowledge ii. Russia- More land iii.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}