Term
|
Definition
| Revenue - Explicit Cost - Implicit Cost |
|
|
Term
|
Definition
| involve the firm's resources, but do not have a monetary payment. Example: opportunity cost of running the business. They are also known as the normal rate of return |
|
|
Term
|
Definition
| When a monetary payment is made. |
|
|
Term
|
Definition
| What firms could get by investing in businesses with similar risk. |
|
|
Term
|
Definition
| A person who tries to exploit opportunities that exist within a market. |
|
|
Term
|
Definition
Offer new product or open new market.
Create a lower cost technology
Find new resources |
|
|
Term
|
Definition
| an entrepreneurial individual that is employed by a firm |
|
|
Term
| Why do companies need intrepreneur? |
|
Definition
Needed to keep ahead of rivals
Needed to improve overall efficiency
Keep the brightest mind in the corporation.
Incentive to incorprorate more profitable projects |
|
|
Term
|
Definition
| highest with low taxes, low regulations, secure property, and consistent legal structure |
|
|
Term
| What is the link between Economic freedom and Economic growth |
|
Definition
Economic freedom creates an environment that is conducive for entrepreneurship.
Then entrepreneurial change leads to growth. |
|
|
Term
|
Definition
| New industries, technologies, and products make older industries become obsolete. |
|
|
Term
| What does creative destruction do to market? |
|
Definition
Clears out less efficient technologies and industries.
Dying industries free resources up for new more efficient industries. |
|
|
Term
| What can impede Creative Destruction |
|
Definition
| The government can impede it by enacting policies to protect dying industries. |
|
|
Term
|
Definition
| When a professional individual has a private interest, sufficient enough to influence the pursuit of their official duties. |
|
|
Term
| Types of Conflicts of Interest |
|
Definition
Self-Dealing
Influence Peddling
Accepting Benefits
Misuse of Employer's property
Outside Employment or Moonlighting
Post-Employment |
|
|
Term
|
Definition
| Use your position to secure benefits |
|
|
Term
|
Definition
| Use your position to secure benefits for a third party |
|
|
Term
|
Definition
| Receiving bribes or non-monetary gifts |
|
|
Term
| Misuse of Employer's Property |
|
Definition
| Personally gaining from employers property without consent |
|
|
Term
| Outside Employment or Moonlighting |
|
Definition
| Holding multiple employment positions at one time, which biases profession behavior |
|
|
Term
|
Definition
| Holding a sequence of employment positions where you carry a bias from one job to the next |
|
|
Term
|
Definition
|
|
Term
|
Definition
| decisions made by low level bureaucrats, often centered on local / regional regulations, licenses, or discretionary spending |
|
|
Term
|
Definition
| the abuse of entrusted power for private gain |
|
|
Term
|
Definition
| decisions made by high-level politicians. Often centered on nation policy formation, infrastructure decisions, military equipment procurement, or allocation of subsidies. |
|
|
Term
| Perceptions of corruption |
|
Definition
|
|
Term
|
Definition
1. Reduced Gdp Growth
2. Reduced Foreign Direct Investment
3. Increased In come inequality
4. Misallocation of government property |
|
|
Term
|
Definition
| corruption helps to speed up commerce in an environment controlled by heavy bureaucracy and excessive regulations |
|
|
