Market Forces and Business Basics
This economic law states that when the price for a product increases, the demand tends to decrease.
The Law of Demand
In this type of market structure, there are many firms offering similar products, but each one tries to differentiate itself through branding and quality.
What is monopolistic competition?
When a country sells more goods abroad than it buys, it has this favourable trade balance.
What is a trade surplus?
Which two levels of Maslow’s Hierarchy could a business target, and what products would appeal to each?
Esteem needs (e.g., luxury items like watches) and safety needs (e.g., insurance).
This type of economic policy involves imposing taxes on imported goods to protect domestic industries from foreign competition.
A tariff
In an oligopoly, a small number of firms dominate the market. Which of these industries is an example: the airline industry or the fashion industry?
What is the airline industry?
This type of economic policy involves imposing taxes on imported goods to protect domestic industries from foreign competition.
What is a tariff?
What market structure is characterized by only a few large firms, where each one’s actions affect the others?
What is an Oligopoly
These are the resources that include tools, machinery, and buildings that businesses use in production.
What are capital resources?
This happens when a country imports more goods than it exports, resulting in a negative balance of trade.
What is a trade deficit?
In a competitive market, companies in monopolistic competition often use this strategy to stand out from their competitors.
What is product differentiation?
Name one benefit and one challenge of international trade.
Benefit – access to more goods; Challenge – tariffs.
This type of economic system combines elements of both market and command economies and would address a product shortage through both market forces and government intervention.
What is a mixed economy?
This type of market structure has a high number of competitors, low barriers to entry, and no single company can influence the price of the product.
What is perfect competition?
The primary goal of a mixed economy in handling shortages is balancing government control with market demand. Which of the following best describes a mixed economy approach to a shortage: increased government subsidies or market-driven price hikes?
What is increased government subsidies?
How does international trade affect Canadians' daily lives?
Canadians enjoy imported goods and benefit from export industries like oil.
If a business wants to appeal to customers' esteem needs, they might offer luxury goods or services. Which of the following products best fits this category: a basic meal at a fast-food chain or a high-end sports car?
What is a high-end sports car?
A natural disaster might destroy crops, leading to a shortage. This could cause prices to rise due to reduced supply. Which product is most likely to be affected by such a disaster: smartphones or agricultural produce like wheat?
What is agricultural produce like wheat?
The key challenge of international trade for Canadian businesses is dealing with these types of costs or barriers that make trading with other countries more expensive.
What are tariffs or trade restrictions?
During a recession, what is one strategy businesses might use to maintain profits?
Cut costs or introduce new products.