The Economic System Chapter 17 - Lion Server经济系统17章狮子服务器.pptVIP

The Economic System Freedom to Buy and Sell Free Market-the exchange between buyers and sellers who are free to choose. Freedom to Compete Free Competition-buyers show which goods they favor every time they make a purchase. Freedom to Earn a Living The Economic System Resources in a Free Market scarcity- the problem of limited resources. Supply and Demand Law of supply- businesses will provide more products when they can sell them at higher prices and fewer products when they must sell them at lower prices. Law of demand- buyers will demand more products when they can buy them at lower prices and fewer products when they must buy them at higher prices. The Economic System Capitalism-U.S. economic system is considered to be this. Capital- is the money people invest in business. Not only does this refer to money but also items that people use to produce income, such as tools, buildings, and machines. Free-Enterprise System-an economic system in which people are free to operate their businesses as they see fit. Rise of Big Business The Economic System Monopolies Monopoly- a company that is the only firm selling a product or providing a service. Merger-occurs when two or more companies combine to form one company. Trust-several companies create a board of trustees. Importance of big Business Economies of scale- describes the situation in which things can be produced more efficiently and cheaply by larger companies. The Economic System Regulating Mono