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What is the definition of Producer?
The entity that creates or carries out production activities to produce goods and services.
What is the difference between a need and a want?
NEED is essential for survival, like food and shelter, while a WANT is something desired but not necessary
What are the factors of production?
Land, Enterprise, Capital, Labour
What is form utility?
A product will have a higher utility value when it has undergone a transformation.
What is consumption in economics?
The activity of reducing or depleting the utility value of goods or services.
What is ownership utility?
A product will have high utility value when it is used and owned by the right user.
What is distribution in economics?
The activity of delivering goods or services from producers to consumers.
What is import?
A good or service brought into a country from another country for sale or trade.
The entity that creates or carries out production activities to produce goods and services is
Producer
How does capital function as a factor of production in the economy?
It enhances productivity by enabling workers to produce more efficiently and in larger quantities.
What is the definition of commissioner?
Intermediaries in buying and selling on their own behalf and are responsible for their own actions.
What are the three basic questions of production that every economy must address? (Explain)
- WHAT (What goods will be produced and what materials are needed to produce them?)
- HOW (How are those goods produced?)
- FOR WHOM (To whom are these goods intended or distributed?)
What is one main goal of consumption activity?
To deplete or reduce the utility value of a good
What is semi-direct distribution?
a strategy where a company uses both direct (e.g., its own store or website) and indirect channels (e.g., retailers or wholesalers) to deliver products to customers.
What is one goal from distribution activity?
- Deliver goods or services from producer to consumer.
- To make production results more beneficial for society.
- Society's need for goods or services is fulfilled.
- To ensure the continuity of production.
What are the two main types of consumption?
- Over Time Consumption
How does income affect consumption?
Income directly affects consumption patterns by determining how much people can afford to spend on goods and services
What is consumptive behavior?
Human behavior that involves excessive consumption activities.
One of the positive impact from consumptive behavior is
- Opening and expanding job opportunities.
- Increasing consumer motivation to boost their income.
-Creating a broader market for producers.
Explain the concept of time utility and provide an example.
A product will have a higher utility value when used at the right time.
Example:
An umbrella becomes very useful when used during rain or intense heat.
What is the difference between wholesale and retail distribution?
Wholesale is an individual or business that buys goods in large quantities and then resells them to smaller merchants.
Retail is an individual or entity that sells goods directly to consumers in individual units.
What is the relationship between production, distribution, and consumption?
Production makes the goods, distribution delivers them, and consumption shows how much people want to use or buy.
What are some factors that influence consumer behavior?
- Income
- Taste or Preferences
- Price of the Goods
- The Number of Family
- Environment
What is the role of money in economic activity?
As a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.
How does consumer demand affect production?
When demand for a product increases, producers are likely to boost production to meet that demand. Conversely, if demand decreases, producers may reduce output or shift to other products.