Assignment Week 01 1. A person who creates and operates the business (and accepts the risk involved) is considered an entrepreneur. Moreover, all tangible things that organizations use to conduct their business (natural resources, raw materials, offices, business equipment, etc.) are physical resources of business. Stater Bros., http://www.staterbros.com, grocery stores are very successful today in California. Started in 1936 the company has continued to grow and now operates 156 supermarkets today. Start by logging into the web site provided. Identify who the entrepreneurs of the Stater Bros. Supermarkets were. What factors of production did they have in starting their business? 2. Planned economies and market economies are two different types of economics systems found throughout the world today. Planned economies are based on communism or socialism while a market economy finds its basis in capitalism. What are basic differences between a planned economy and a market economy based on capitalism? 3. Market economies are based on the simple principal of demand and supply. Demand is the willingness and ability of buyers to purchase a good or service. Supply is the ability and willingness of producers to offer a good or service for sale. The U.S. Department of State has put together an information article authored by Michael Watts called “What is a Market Economy?” (http://usinfo.state.gov/products/pubs/market/homepage.htm). This is an informative article through their international information programs section. 4. Two key goals of the U.S. economic system are economic growth and economic stability. Economic growth is measured through aggregate output, standard of living, gross domestic product, and productivity. While economic stability is threatened by inflation and unemployment. The United States’ economy can be monitored through the U.S. Department of Commerce, http://www.commerce.gov/. Start by logging into the web site provided. What information can be derived by a visit to the U.S. Department of Commerce site? How is it useful for businesses to monitor this information? 5. Profits enable a business to continue to exist and possibly expand. Mr. Delbert and his business partner are exploring new business opportunities. They have come up with a few different ideas for products and services. What are the foundations of a successful business that should be taken under consideration when deciding on their final product or service? Access the above link to view the article entitled “What is a Market Economy?” What does the author offer as the fundamental principle of a market economy? What are the most important points on private enterprise and entrepreneurial spirit? 6. Why does private enterprise help to foster an efficient market economy?