Economics unit 2 notes

Markets Economists study trade, production and consumption decisions, such as those that occur in a traditional marketplace. Electronic trading brings together buyers and sellers through an electronic trading platform and network to create virtual market places.

Economics unit 2 notes

Private sector firms are owned by the general public, while on the other hand, public sector firms are owned by the country as a whole.

Economics unit 2 notes

In addition, private sector businesses are controlled by the people who own them, and public sector businesses are accountable to the government.

These two sectors have different aims and objectives. The private sector firms, for instance, aim to maximise profits for their owners. In contrast, public sector firms mainly aim to provide a service to the general public.

Distinguish between the Public Sector and the Private Sector. An economy made up of all the organizations and firms owned by members of the general public. Furthermore, it consists of private individuals and voluntary organizations. An economy owned and controlled y a government.

It consists of government organizations, and goods and services provided by the government such as state education, roads, public parks etc. Different Types of Firms: A one person business with unlimited liability, a sole trader is the one of the most basic and oldest type of business in the world.

This type of business is owned by one person, who will have personal contact with the customers and staff. The owner must raise all the finances independently to run the business. Can have more than one employee but it will always be owned and controlled by only one person.

Sole trader is a very personal one: Owners of this business will be able to have personal contact with the customers and staff. Because of this, the owner would be able to find out quickly what people want.

This will make them be able to allocate their sources to maximize his or her profits. Also, consumers can be loyal to the business. They have the highest degree of control.

The sole trader receives all the profits. Disadvantages The owner will have unlimited liabilities, meaning that the owner is responsible for all the payments of debts.

Economics unit 2 notes

Sole traders lack capital. Sole traders have full responsibility. They need to manage the business, do the book-keeping, advertising, buying and selling, and many other things.

Most of the time, sole traders require a wide range of skills. They may also need to work for longer hours. Partnerships Partnerships are agreements or declarations between individuals. This agreement is to jointly own and run an enterprise, contribute to it by combing heir money and knowledge, and share in profits.

Partners can bring new skills and ideas to a business More partners mean more money for the business. If there is a partnership, there will be more shares in the business. This money can be used to expand the business.Social Studies help for American History, Economics and AP Government. There are class notes, numerous Supreme Court case summaries and information on how to write a research paper inside.

Free revision notes relating to edexcel economics unit 2 (macroeconomics). Describe the main features of private sector firms in terms of ownership, control and aims/objectives?

Private sector firms are owned by the general public, while on the other hand, public sector firms are owned by the country as a whole. Economics (unit 2) Sarah C. • 57 cards. AD (Equation) C + I + G + (X - M) Aggregate demand.

The total planned demand for final goods and services in an economy Aggregate supply. The total planned output of goods and services producers are willing and able to . The Best Economics AS and A Level Notes, Revision Guides, Tips and Websites compiled from all around the world at one place for your ease so you can prepare for your tests and examinations with the satisfaction that you .

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Unit 1 - Basic Economics