Local Economics
What is economy
Economy refers to the complex process related to how people use and distribute limited resources efficiently to satisfy their needs.
All tools and materials that satisfy human needs are called resources.
How to calculate profit?
Income - resource expenses - taxes
What is a trade market?
Trade market is interaction between byers who have money and are willing to spend and sellers who want to sell goods, under the regulation of government.
What is a business?
Business refers to an activity in which a certain amount of capital is invested with the aim of increasing it. The main goal of all types of business is to generate income. A business idea means identifying an opportunity to earn income.
What is a local area?
A local area is our province, city, district, or county where we live.
What are the 4 main types of limited resources?
Land, labor, capital, and entrepreneurship.
How do local areas benefit from small business enterprises?
What does government regulate on the trade market.
Safety of the byers, quality of the products, fair competition.
What types of organizations are operating on a local area level?
Governmental organizations, Non-governmental organizations, Business enterprises.
What is the production (giving service) process?
input-tranformation-output
What is a budget?
A budget is a financial plan that shows how income will be collected, and how it will be use.
Demand refers to the quantity of goods and services that can be purchased at a specific price based on the buyer's preferences and interests.
What are the necessary steps in order to find business idea?
1.Identify possible ways to earn income
2.Study people’s daily needs
3.Build on (or learn from) other people's businesses
What is a business enterprise?
The term “business enterprise” refers to organizations that conduct economic activities.
To become a business enterprise, an organization must register officially and obtain permission to operate.
Give 3 examples of capital resource?
Machines, equipment, buildings, computers, raw materials, tools, money.
What are the sources of income for local budget?
Local taxes, non-tax revenue, grants from the central budget.
What is a supply?
Supply refers to the quantity of goods and services that producers are willing and able to provide to the market.
What are the steps to properly plan your business?
1.The goal of the business
2.The main activities
3.A plan of the tasks to be done
4.Calculating risks, estimating income, expenses, and profits
Why are there more business enterprises than other types of organizations.
Because they make profit, pay taxes, hire people.
What are entrepreneurship skills?
Those are organizational, and planning skills.
How will be the money from the local budget spent?
Salaries and bonuses of government employees. Supporting small and medium enterprises. Social welfare and benefits for citizens. City maintenance and improvement. Local development projects.
How is price related to supply, and demand on the trade market?
If demand goes up, price goes up too. If supply goes up price goes down.
Give an example of a business plan?
1. Objective (goal)
2. Main activities
3. Task that should be done
4. Profit calculations
1. Production of thick winter gloves
2. idea - produce gloves - sell the gloves
3. get materials - rent sewing machine - get labor - rent a place - design gloves - produce - promote online - sell
4. Invest in production of 100 pairs, each pair 10 dollars, sell for 30 each.