Economic Utilities of Marketing
Economic Systems
Economic Indicators & The Bus Cycle
International Trade
Private Enterprise & Global Consumers
100
According to the slides, Economic Utility = ...
Customer Value.
100
What is an Economy?
An economy, or economic system, is the organized way a nation uses economic resources to provide for the needs and wants of its people.
100
What are the 3 goals of a healthy economy?
Increase productivity
Decrease unemployment
Stabilize prices
100
Define international Trade
the exchange of goods and services among nations.
100
Name two characteristics of Free (Private) enterprise systems.
Freedom in the marketplace
Private Property
Limited government control
Competition
The profit motive
200
Which type of utility is defined below?
The usefulness created when you change the form of a good.
Form Utility
200
What are the three Economic Questions?
1. What goods and services should be produced?
2. How should the goods and services be produced?
3. For whom should the goods and services be produced and distributed?
200
Define GDP
The output of goods and services produced within a country.
200
What are imports and exports?
Imports are goods and services purchased from other countries.
Exports are goods and services sold to other countries
200
INTERNATONAL TRADE QUESTION!!
This did not fit in the other section so here it is now.
Name one of the reasons that Nations trade
Most countries do not manufacture all of the goods and services they need; they get some of their goods and services from other countries
A country may produce goods better or cheaper than other countries because of:
Better or more up-to-date technology
Labor force/workers with a different set of specialized skills
Easier access to raw materials
300
Define the word, Utility.
An economic term which describes the added value and benefits to the consumer from acquiring and consuming the product.
300
Tell me the basic versions of the Law of Supply and Law of demand
Law of supply: As Price goes up, supply goes up and vice versa
Law of Demand: As price goes up, demand goes down and vice versa.
300
What are the key economic measurements
Labor productivity
Gross domestic product
Standard of living
Inflation rate
Unemployment rate
300
Name the three trade agreements we talked about in class.
World Trade organization
North American Free Trade Agreement
The European Union
300
What is the difference between for-profit and non-profit businesses
For-profit businesses are concerned with making money (profit), while non-profits are concerned with furthering their mission or goal.
400
Define the term possession Utility.
Possession utility is the usefulness or perceived value customer get from owning a product. Possession utility also deals with how easy it is to take ownership of the product.
400
Draw me a Supply and Demand graph that shows a surplus
400
What can business cycles be affected by?
Business cycles can be affected by the actions of businesses, consumers, and the government.
400
Describe both Comparative and Absolute Advantage.
A country has an absolute trade advantage when it can produce a product at a lower unit cost than any other country.
A comparative trade advantage occurs when a country can produce a product at a more efficient level than other nations.
400
What is a "Loss Leader" strategy.
A loss leader strategy prices a product lower than its production cost in order to attract customers or sell other, more expensive products.
500
Scenario: I have developed a software that is very complex and hard to effectively utilize. Due to this I have added a PDF with many details to help new users. What type of utility am I utilizing.
Information utility
500
Describe the three Economic systems that we discussed in class
In a traditional economy, habits, traditions, and rituals answer the 3 basic economic questions
In a pure market economy, there is no government involvement in economic decisions. Individuals and companies own the factors of production and the economy is driven by competition
In a command economy, a nation’s government makes all economic decisions.
500
Name and explain the two measures of inflation.
The Consumer Price Index (CPI) measures the change in price levels over a period of time of 400 specific retail goods services used by the average urban household.
he Producer Price Index measures wholesale price levels in the economy.
500
List and define the three protectionist policies that we talked about in class
A tariff is a tax placed on imports.
A quota limits either the quantity or the monetary value of a product that may be imported.
An embargo is a total ban on specific goods coming into and leaving a country.
500
What is one effective way to decide what to buy?
1. Read consumer publications that will have accurate information on the product.
2. Study Advertisements. Believe advertisements that convince consumers with facts and information and not those that appeal to emotion.