Making Decisions
What are Values? One Example
Values are your principles, the standards by which you live. (What describes your decisions in the future or life decisions)
What is the difference between human and non-human resources?
Human resources are the skills, training, and abilities people have to complete tasks that result in the production of goods or services.
Nonhuman resources are the raw materials, tools, and manufactured products that are used to make goods and services. (oil, tractors, and lumber)
Why do both buyers and sellers benefit when they complete transactions?
Both buyers and sellers benefit when they complete transactions because both get what they want.
Why do businesses advertise?
Businesses advertise to encourage consumers to buy their products so they can make a profit.
How can you dispose of waste responsibly?
You can dispose of waste responsibly by deciding not to pollute any more than necessary in your daily life. Recycle what you can. Have recycling programs, have products the can be disposed like oil or car motors. Or have special collection programs for disposing or recycling.
What is the difference between a need and a want?
A need is something you cannot live without.
A want is something you would like to have but can live without.
Describe the four economic systems?
Traditional Economy: ways to produce products are passed from one generation to the next.
Command Economy:the government owns most resources and makes most economic decisions.
Market Economy: people rather than the government, own the resources and run the businesses.
Mixed Economy: is a mixture of a market economy with some aspects of a command economy.
List three things that a profitable company does.
Selling products consumers want to buy.
Selling products at a price consumers are willing to pay.
Taking in more money from sales than the company spends to produce the products.
Who pays for advertising?
The ad space owner and marketers pay for advertising. Mostly businesses pay for advertising when needing to show consumers a product.
What are some scarce natural resources?
What goods and services do you buy that use these resources?
Oil, coal, natural gas, forests, and plant and animal species.
Fire places, cars, carpets, clothes, feathers, heaters, and etc.
What are short term goals?
Short term goals are things you hope to accomplish within a year.
Why do most nations really operate as a mixed economy?
Most nations operate as a mixed economy because of it being a mix of the market economy and some aspects of the command economy.
What three choices does a failing company have for trying to increase its profits?
Reduce Profits
Change Price
Increase Quantity of Products Sold
How can using the decision making process help you avoid being misled by deceptive advertising?
The decision making process helps you approach buying decisions in an organized, logical manner. (Recommends gathering information from several sources and evaluate the info and consider alternative choices.)
How do your consumer decisions affect people in your local community and world community?
Your consumer decisions affect the local and world community by depending on what the product uses or how it affects the environment. For example, the hats with decorations may affect the environment like the birds or materials from anything.
Why do businesses spend millions of dollars a year to find out what customers want?
Businesses spend millions of dollars a year to find out what customers want because businesses will have stock products consumers may want and charge prices you are willing to pay.
Why does a demand curve normally slope downward from left to right?
The demand curve normally slopes downward from left to right because it means that the price goes up and the quantity demanded goes down.
What does the term consumer sovereignty mean?
The term consumer sovereignty means that the consumers are in charge of something. (Sovereignty means to be in charge of something.) (Consumer choices determine what goods and services are produced.)
What makes an advertisement deceptive?
What makes an advertisement deceptive is advertisers try to make ads as good as possible, which can involve some exaggeration.
Why is it important to dispose of waste responsibly?
It is important to dispose of waste responsibly because we want to live in a clean world, free of disease causing pollution that can affect the world causing shortages.
When making a decision, why should you consider the opportunity cost?
You should consider a opportunity cost there are different items for different costs, so choosing the best alternative cost from many different people (or opportunity's) can save you money. For example, your friend has $20 worth of jeans while at a store is $40, choosing from where your friends got it, will be the best alternative.
What happened to the economy of the former Soviet Union during the late 20th century?
During the Soviet Union, the command economy broke up into different countries and moved toward a market economy.
Why do companies that do not serve their customers well usually fail?
Companies usually fail because not serving the customers, causes the customers to lose interest. For example, companies earn profit by offering good quantity products that consumers want to buy at a fair price.
What are brand name products? What are the benefits and costs of brands for consumers?
Brand name products are a well known manufacturer and has the manufacturer's label on it. (A business that has their name labeled on their products.)
A benefit of a brand is that if you like the product quality when you buy it the first time, then you can usually depend on getting the same quality the next time you buy that brand.
Costs of a brand is a pay of the cost of advertising, businesses may have to increase the price of the product.
How can you encourage businesses to operate more responsibly?
You can encourage them by telling them to avoid using products that pollute or waste in resources. Also, by using environmental produced products in responsible ways.