Economics and Free Market Economy
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
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