Economics and Free Market Economy

Topics: Economics, Mixed economy, Capitalism Pages: 4 (673 words) Published: October 30, 2013

VIDEO CASE

1 . Is Peet’s market monopolistic or an oligopoly?
An oligopoly

2. What are some ways that Peet’s Coffee & Tea tries to differentiate its product offering? Offering free samples and educating their customers about their products. The Peetniks Program.

3. What consumer needs is Peet’s satisfying?
The need to feel a part of special group. The need to feel like an informed consumer.

KEY TERMS

free enterprise - an economic system with few restrictions on business ownership and activities

cultural (or workplace) diversity - a belief that cultural identities should be maintained and valued

business - an organization which sells goods and/or services to consumers

profit - the amount of revenue gained after costs are deducted from revenue

stakeholders - a party who can affect or be affected by an organization’s actions

economics - the study of the production, distribution and consumption of goods and services

microeconomics - the study of the market behavior of individual consumers

macroeconomics - the study of economic trends as a whole

Emergency Economic Stabilization Act - provided authority for the federal government to purchase certain troubled assets and to provide individual income tax relief

economy - management of resources

factors of production - inputs to the production process

entrepreneur - a person who organizes and operates a business

capitalism - an economic system in which anyone can start their own business for their own profit.

invisible hand - describes self-regulating behavior of the marketplace

market economy - a free market economy not controlled by a central authority

mixed economy - an economic system where the economy is directed by both the public and private sectors

consumer products - products for sale for non-business purposes

command economy - an economy where supply and price are regulated by the government

productivity - a measure of production...
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