PENGANTAR BISNIS

Business:

An organisation that provides goods or services to earn profit.

Profits:

The difference between a business’s revenues and its expenses.

Economic System:

A Nation’s System for allocating its resources among its citizens

Factor of Production:

Resources used in the production of goods and services, natural resources, labour, capital, and entrepreneurs.

Labour (or human resources):

The physical and mental capabilities of people as they contribute to economic production.

Capital:

The funds needed to create and operate a business enterprise

Physical resources:

Tangible things organizations use in the conduct of their business

Information resources :

Data and other information used by business

Planned economy:

Economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions.

Market economy:

Economy in which individuals control production and allocation decisions through supply and demand.

Market:

Mechanism for exchange between buyers and sellers of a particular good or service.

Input market:

Market in which firms buy resources from supplier households

Output market:

Market in which firms supply goods and services in response to demand on the part of households

Capitalism:

Market economy that provides for private ownership of production and encourages entrepreneurship by offering profits as an incentive

Mixed market economy:

Economic system featuring characteristics of both planned and market economies.

Privatisation: process of converting government enterprises into privately owned companies

Socialism:

Planned economic system in which the government owns and operates only selected major sources of production.

Demand:

The willingness and ability of buyers to purchase a good or service

Supply:

The willingness and ability of producers to offer a good or service for sale

Law of demand:

Principle that buyers will purchase (demand) more of a product as its price drops and less as its price increases.

Law of supply:

Principle that producers will offer (supply) more of a product for sale as its price rise and less as its price drops.

Demand and supply schedule:

Assessment of the relationships between different levels of demand and supply at different price levels.

Demand curve:

Graph showing how many units of a product will be demanded (bought) at different prices.

Supply curve:

Graph showing how many units of a product will be supplied (offered for sale) at different price

Market price (or equilibrium price):

Profit-maximizing price at which the quantities of goods supplied are equal

Surplus:

situation in which quantity supplied exceeds quantity demanded

Shortage:

situation in which quantity demanded exceeds quantity supplied

Private enterprise:

Economic system that allows individuals to pursue their own interests without undue governmental restriction.

Private property right:

The right to buy, own, use, and sell almost any form of property.

Competition:

Vying  among businesses for the same resources or customers.

Pure competition:

Market or industry characterized by numerous small firms producing an identical product

Monopolistic competition:

Market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors

Oligopoly:

Market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products

Monopoly:

Market or industry in which there is only one producer, which can therefore set the prices of its products.

Natural monopoly:

Industry in which one company can most efficiently supply all needed goods or services.

Stability:

Condition in which the balance between the money available in an economy and the goods produced in it are growing at about the same rate

Inflation:

Phenomenon of widespread price increases throughout an economic system

Recession:

Period characterized by decreases in employment, income, and production

Depression:

Particularly severe and long lasting recession

Unemployment:

Level of joblessness among people actively seeking work

Knowledge workers:

Skilled employees in high-tech industries

Growth:

Increase in the amount of goods and service produced by nation’s resources

Gross National Product (GNP)

The value of all goods and services produced by an economic system in a year regardless of where the factors of production are located

Real gross national product:

Gross national product adjusted for inflation and changes in the value of a country’s currency

Gross Domestic Product:

The value of all goods and services produced in a year by nation’s economy through domestic factors of production

Productivity:

Measure of economic growth that compares how much a system produces with the resources needed to produce it

Budget deficit:

Situation in which a government body spends more money  than it takes in

National debt:

Total amount that a nation owes it creditors

Monetary policies:

Government economic policies that determine the size of nation’s money supply