unit 1
A social science that focuses on the production and distribution as well as the consumption of goods and services.
What is the definition of traditional Econ
the economic system in which the basic economic activity stems from ritual habit and even custom
what is Business Growth and Expansion?
a stage where the organization experiences an unprecedented and the sustained increased in the market reach profit avenues
what is demand?
an economic concept that relates to a consumer's desire to purchase goods and services and willingness to pay a specific price for them
what is supply?
the number in the products that a producer or as well as a seller are willing and capable to provide for its buyers
what are the 4 Productivity and Economic Growth
1) Productivity
2) Human Capital
3) Division of Labor
4) Economic Interdependence
what is economic growth
an increase in the size of a country's economy from over a period of time
what are the Reinvesting cash flows
1) the payments like bonuses and dividend payments etc.
2) the reinvest into the company to produce any additional product
3) if the cash flows are positive and as well as above the depreciation then the firm will grow
4) Investors look at the cash flow
what are the Characteristics of Elasticity of Demand
1) Measure of Responsiveness
2) Elastic demand
3) Inelastic demand
4) Unit elastic demand
5) Determining elasticity
6) Relationship to purchasing
7) Determinants of Demand Elasticity
what are the definitions of The Theory of Production
1) Diminishing Returns
2) Production Function
3) Labor
4) Marginal Product
5) Total Product
what are the goods of economics?
1) consumer goods
2) Durable goods
3) Nondurable goods
what is Economic Efficiency
an economic goal that bases on the desire of people to use wisely
what is Vertical Merger
a business combination that firms involved in different steps of manufacturing or marketing
what are Factors that are Affecting Demand
1) Change in Quantity Demanded
2) Income Effect
3) Substitution Effect
4) Substitutes
5) Complements
what are the Stages of Production
1) Increasing returns
2) Decreasing marginal returns
3) Negative returns
what are Nondurable goods
an item that lasts for less than three years when used on a regular basis
what is Economic Freedom
it is an economic goal that is based on what people desire to make their own decision
what are the 2 things of Growth through Reinvestment
1) Using an income statement to report sales and cash flow
2. Estimating cash flows
what is Elastic Demand?
it is the change in quantity demanded due to a change in price is large
what are the definitions of Cost, Revenue, and Profit Maximization<
1) Fixed Cost = Cost that a business incurs even if there is little or no activity
2) Variable Cost = Cost that changes when the business’s rate of operation or output changes
3) Marginal Cost = Extra cost incurred when a business produces one additional unit of a product
4) Total Revenue = The number of units sold multiplied by the average price per unit
5) E-commerce = Electronic business or exchange conducted over the Internet
what is Human Capital
The sum of the skills, abilities, health, knowledge, and motivation of people
what are the 3 things of Capitalism
1) Has ability to generate wealth
2) Private citizens own property and use factors of production to gain wealth
3) Free enterprise system = resources are privately owned, competition
what are the Growth through Mergers
1. Definition = two or more companies joining together legally
2. Horizontal Mergers
* businesses which produce the same kind of product
* example = Pepsi Cola buys Coca Cola
3. Vertical Mergers
* companies involved in different stages of manufacturing merger
* example = Pepsi Cola buys C&H Sugar
4. Reasons for Mergers
* grow faster, become more efficient, acquire better product, eliminate a
rival, efficiency, market control
5. Conglomerates
* a firm with at least four unrelated businesses
* Diversification
6. Multinationals
* Corporation with operations in multiple nations
* Ability to move resources, goods, services, and financial capital across
borders, cheaper labor
what is Inelastic Demand?
it is the static quantity of good or as well as serves when the prices changes
what changes in supply?
1) cost of resources
2) productivity
3) technology
4) taxes and subsidies
5) expectations
6) government regulations
7) number of sellers