Quiz 2A

Direct Competitors

Companies that sell products or services identical or very similar to the ones you sell, Ex. Starbucks vs. Dunkin' Donuts, Wendy's vs. McDonald's

One way that competition helps to build a prosperous society is by

Creating new jobs, allowing more people to work

A popular product is said to be

Demand

Most companies put their best competitive effort up against their..

Direct Competitors

Private enterprise is based on the idea that

Everyone should set their own goals!

Which of the following are qualities of monopolies:

High Prices and Low production

Which activities are likely to increase a firm's profit?

Increase sales and decrease expenses

One way that competition benefits business is by encouraging the creation of

New Companies

Disadvantage of private enterprise:

Periods of Unemployment, Careless use of Resources, Unequal Distribution of Income

private property

Private property is anything of value that people own. Guitars, Cars, ETC

If expenses are greater than income, there's no

Reward for starting your own business

Gross profit shows business owners the difference between what you have

Spent and Recieved

Why are entrepreneurs important in a private enterprise system?

They encourage the development of new products

Each purchase strengthens the economy by encouraging

Trade

Private enterprise system is the freedom to choose

Where you will work

nonprice competition

a way to attract customers through style, service, or location, but not a lower price