Alexis Manchester

9/10/15
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1.) The fundamental goal of business is to earn profit. All organizations have this
goal.
2.) The form of a product is tangible and intangible. For example intangible is
something of value to customers, like dry-cleaning, a check up by a doctor,
watching a basketball game etc.. An example of tangible is something that
satisfies you, like a computer, phone, car, etc.
3.) The main participants of a business are owners, employees and customers. The
main activities are finance, marketing and management. The other factors that
have an impact on the conduct of business in the United States are competition,
economy, information technology, social responsibility and ethics, legal, political
and regulatory forces.
4.) The four types of economic systems are Communism, Socialism, Capitalism, and
mixed economies. China and Cuba are examples of Communism. Sweden and
India are examples of Socialism. The United States and Canada are examples of
Capitalism. Lastly, all countries use mixed economies.
5.) Supply is the number of products that businesses are willing to sell at different
prices and demand is the number of goods and services that customers are
willing to buy at different prices at a specific time. The equilibrium price is the
price at which the number of products that business is willing to sell and the
number that which customers are willing to buy meet at a specific point, in the
middle. Competition is the rivalry between businesses. These forces interact with
the American economy because we use all these today with sales going up and
down.
6.) The four types of competitive environments are pure competition, monopolistic
competition, oligopoly and monopoly. Pure competition exists when small
businesses selling on product such as agricultural commodities like what, corn
and cotton. Monopolistic competition exists when there are fewer businesses
than in pure competition and the goods they sell are small like soft drinks,
vacuum cleaners and deodorant. Oligopoly exists when there are very few
businesses selling a product. Like airline industries. Monopoly is when a
business is providing a product in a given market like new technology.
7.) The government may use GDP (gross domestic product) or budget deficient.
The GDP is the sum of all goods and services produced in a country during a
year. Budget deficient is when a nation spends more money than it takes from its
taxes. If the unemployment is high the GDP will be great.
8.) Fluctuations are harmful to the economy because it reduces employment.

9.) The industrial revolution influence the growth of American economy by getting
more jobs because the factories and materials gave people more jobs. We apply
the term service economy in the United States because its one devoted to the
production of services that make life easier for busy customers.
10.)
The government regulates business to preserve competition and protect
customers and employees. Federal state and local government intervene in the
economy with laws and regulations designed to promote competition and to
protect customers.