9."Economic Systems"

What does the survival of any society depend on?

The survival of any society depends on its ability to provide food, clothing and shelter for its people.

What are the major kinds of economic systems?

There are three major kinds of economic systems: traditional, command and market.

What is the main advantage of the command economy?

The main advantage of the traditional economy is that everyone has a role in it. This helps keep economic life stable and community life continuous.

Who determines needs and production quotas for major industries in a commandeconomy?

the government

Who will stay in business in a market economy?

Those who make the best products for the lowest prices will make profits² and stay inbusiness

10."Business Organizations"

What is a business organization?

a profit-seeking enterprise¹ that serves as the main link between scarce resources and consumer satisfaction.

What are the major kinds of business organizations?

There are three major kinds of business organizations: the soleproprietorship², the partnership³ and the corporation⁴.

In what businesses are sole proprietorships generally found?

.Sole proprietorships are generally found in small-scale retail and service businesses such as beauty salons, repair shops, or service stations.

What is the difference between a general partnership and a limited partnership?

General partners own the business, work in it and share the profits and losses. They are responsible for the management of the business and usually agree with each other before making any major decisions. Limited partners are only liable for the amount they have invested in the business. They are usually not involved in the management of the firm.

What is necessary to form a corporation?

People, who would like to form a corporation, must file for permission¹ in the state where the business will have its headquarters. If approved, a charter, government document that gives permission to create a corporation, is granted. The charter states the name of the company, address, purpose of business etc.

11. "The principal kinds of market structures"

What was a market originally?

There was reflectionancient idea of a market as a place where people gather to buy and sell goods.

What market structures do you know?

Economists have names for these different market structures: pure competition¹, monopolistic competition², oligopoly, and monopoly.

What is pure competition?

This is a market situation in which there are many independent and well-informed buyers and sellers of exactly the same economic products.

What is monopoly?

A market structure in which there is only one seller.

What is oligopoly?

A market structure in which there are few large firms providing similar goods and services.

What kind of markets do you know?

I know different kinds of markets such as gold market, free market, commodity market.