EC-070
What is the main goal of a business?
To make profit.
What is the definition of economics?
The study of how people use resources to satisfy their needs and wants.
How are goods and services different?
Goods are things you can touch; services are actions people do.
How do businesses decide how to use resources?
They look at what’s available and what people need.
How does a shift in demand affect the market?
If demand increases, the price and quantity go up; if demand decreases, the price and quantity go down
Name one type of business ownership.
Sole proprietorship.
What are the three types of economic resources?
Natural resources, human resources, and capital resources.
What is an economic service?
A helpful action that people pay for, like a plumber fixing pipes.
What happens when there are not enough resources?
Prices may go up, and businesses might produce less.
What causes a shift in supply?
Changes in costs or how much producers want to sell can increase or decrease supply.
What does CSR stand for?
Corporate Social Responsibility.
What is the difference between goods and services?
Goods are physical items, while services are actions done for others.
How do businesses decide what goods or services to sell?
They look at what people need or want.
What is scarcity?
When there are limited resources but unlimited wants.
How do external factors, like weather or government policies, affect supply and demand?
Bad weather can reduce supply, and government rules can either increase or decrease demand or supply.
Why are ethics important in business?
They help businesses make fair and honest decisions.
What is the difference between needs and wants?
Needs are essential for survival, while wants are things we desire but don’t need to survive.
Why do services sometimes cost more than goods?
Services often require special skills, time, and effort.
How can businesses be more resourceful?
By using resources wisely, recycling, or finding new ways to produce.
Why do producers raise prices when demand increases?
To make more money because more people want the product.
How does globalization affect businesses?
It helps them grow but also increases competition.
How do supply and demand affect prices?
When demand is high and supply is low, prices go up. When supply is high and demand is low, prices go down.
How do goods and services help the economy?
They create jobs, make money, and keep businesses running.
Why is it important to manage natural resources carefully?
Because they can run out, and we need them for survival and production.
How does the concept of elasticity relate to supply and demand?
Elasticity shows how much demand or supply changes when prices change. If something is elastic, small price changes lead to big changes in how much people buy or sell.