Business Quizzes Ans. Flashcards
How does the control of markets differ between Capitalism, Socialism, and mixed economy?
Capitalism has no government influence whilst socialism does. Mixed economy has a little bit of both.
How does worker incentives differ between Capitalism, Socialism, and mixed economy?
Capitalism has a strong worker incentive, socialism has a low worker incentive, and a mixed economy has a low public sector and a high private sector.
How do businesses and households interact in product markets?(circular flow diagram)
Businesses give wages, rent, and profit opportunities to households. This allows them the spend and give businesses their revenue. In product markets households get income from the firm and the firm gets their revenue from the household.
On the demand curve, what is the relationship between prices and demand for a product?
The relationship depends on how much the people are willing to spend on multiple. If price goes up demand goes down, if price goes down demand goes up.
Compare and contrast perfect competition and pure monopoly.
Pure monopoly means that one business can essentially take credit and be the only main supplier of a product. Perfect competition means any firm can sell similar products with no problem.
Briefly describe the relationship between ethics and justice?
Ethics are more personal and justice is seen as more societal.
What is social investing?
Limiting investments in accordance to investors’ beliefs with ethical and social responsibility.
What is utilitarianism?
Seeks the best for the majority. Involves winners and losers, and focuses on the consequences of an action.
What is the role of top management in organization ethics?
They guide the development, allocation, of resources, and maintenance in order to gain goals.
What are the four important aspects of the social contract between employer and employee?
Compensation, management, culture, and learning/ development.
What is the difference between absolute advantage and comparative advantage?
Absolute advantage is when a country produces & sells products lower than other countries. Comparative advantage is similar however it specifies & targets goods & the cheapness/readiness of the product.
