GMGT 1010 (Business and Society)
FINAL EXAM 2 NOTES TO ACE
YOUR EXAM UNIVERSITY OF
MANITOBA.
, Assumptions of Capitalism
KEY ASSUMPTIONS OF CAPITALISM
1. Private property
2. Individualism
3. Economic Freedom
4. Equality of Opportunity
5. Competition
6. Profit
7. Work Ethic
8. Consumer Sovereignty
9. Role of Government
PRIVATE PROPERTY - The legal right to own and use economic
goods (means of production) such as land and buildings; allows
individuals to control their own destiny
- There is an uneven distribution of wealth
- Taxation one method of redistributing wealth
INDIVIDUALISM - The individual, and not society or a
collective, is the paramount decision maker in society and
assumes that individual is inherently decent and rational
ECONOMIC FREEDOM - Few restrictions on business activity
– Freedom to voluntarily enter business
– Enter contracts
, Factors Considered When Identifying and Measuring Economic
Freedoms
1. Property Rights
2. Taxation
3. Government Intervention
4. Regulation
5. International Exchange
6. Foreign Investment
7. Money and inflation
8. Wage and price controls
9. Corruption
EQUALITY OF OPPORTUNITY - Assumption that all individuals
or groups have an even chance at responding to some
condition in society
COMPETITION - Many rival sellers seek to provide goods and
services to many buyers
PROFIT - The excess of revenues over expenses; The “profit
motive”; Profit maximization
WORK ETHIC - Code of values, or a body of moral principles,
claiming that work is desirable, it is natural activity.
CONSUMER SOVEREIGNTY - the assumption that consumers
have and exercise the power over producers through the
decisions they make in purchasing the goods and services
provided by business
ROLE OF GOVERNMENT - In perfect capitalist market,
FINAL EXAM 2 NOTES TO ACE
YOUR EXAM UNIVERSITY OF
MANITOBA.
, Assumptions of Capitalism
KEY ASSUMPTIONS OF CAPITALISM
1. Private property
2. Individualism
3. Economic Freedom
4. Equality of Opportunity
5. Competition
6. Profit
7. Work Ethic
8. Consumer Sovereignty
9. Role of Government
PRIVATE PROPERTY - The legal right to own and use economic
goods (means of production) such as land and buildings; allows
individuals to control their own destiny
- There is an uneven distribution of wealth
- Taxation one method of redistributing wealth
INDIVIDUALISM - The individual, and not society or a
collective, is the paramount decision maker in society and
assumes that individual is inherently decent and rational
ECONOMIC FREEDOM - Few restrictions on business activity
– Freedom to voluntarily enter business
– Enter contracts
, Factors Considered When Identifying and Measuring Economic
Freedoms
1. Property Rights
2. Taxation
3. Government Intervention
4. Regulation
5. International Exchange
6. Foreign Investment
7. Money and inflation
8. Wage and price controls
9. Corruption
EQUALITY OF OPPORTUNITY - Assumption that all individuals
or groups have an even chance at responding to some
condition in society
COMPETITION - Many rival sellers seek to provide goods and
services to many buyers
PROFIT - The excess of revenues over expenses; The “profit
motive”; Profit maximization
WORK ETHIC - Code of values, or a body of moral principles,
claiming that work is desirable, it is natural activity.
CONSUMER SOVEREIGNTY - the assumption that consumers
have and exercise the power over producers through the
decisions they make in purchasing the goods and services
provided by business
ROLE OF GOVERNMENT - In perfect capitalist market,
