Unit 1
What does COGS stand for?
Cost Of Goods Sold
What are the 3 fundamental questions every economic system must answer?
What, How, For who?
What is the definition of goods?
something tangible that you buy
In what part of the economic cycle does GDP go up?
Expansion
What is the primary goal of all businesses?
To earn profit
What type of society does communism aim for?
No classes, no money, and distribution based on need
What is the definition of services?
services do things for you that you cant (untangible)
How long does a recession last?
6+ months
What is innovation in business?
Creating new and improved ways to solve problems or deliver value
A mixed economy balances...
Customs and gov. planning
What is the definition of a non-profit business?
A business where profit must be reinvested into the organization
What are the 4 phases of a business cycle?
Expansion, peak, contraction, trough
What is a key skill in Entreprenuership?
Innovation and risk-taking
What type of economy is America?
Mixed
What is the definition of Scarcity in economics?
Limited resources versus unlimited wants
When does equilibrium occur?
Supply=Demand
For what businesses is design thinking most relevant?
All types
When does demand-pull inflation occur?
It occurs when demand exceeds supply.
What is elastic demand?
a small price change causes a large change in demand.
What is it called when there is a cycle disruption that leads to a contraction of the economy?
Economic Shock