Economic Concepts
What form of economy is prevalent in modernized and developed countries? (EX: what are the economic systems in places like the U.S.A, Japan, Canada, Australia)
1. Capitalism!
Name the form of business that acts as a separate legal entity, is governed by an elected board of directors, and is often highly profitable and established business.
A Corporation!
Define what an asset is.
- Resource with economic value
- Property, land, cash, items of monetary value
- Adds to your net worth
A.) Price
B.) Promotion
C.) Place
D.) Product
Explain the concept of economic productivity.
Refers to how much output can be produced with a given set of input.
Which form of economy is entirely controlled by the government, and restricts the freedom toward making profit and entering the market? (it also reduces income inequality actually by making everyone poor)
Communism!
In an peak stage of a company's growth cycle, what can you expect to see from their revenue at this stage?
Its probably the highest its ever been, because its at the peak of the business cycle.
Is it smarter to invest $500 into one stock (or share of a company) or to invest $100 each into separate stocks.
$100 into separate stocks...this is the process of diversifying your portfolio in investments.
If a company has just started to draw attention to its goods and services, and trying to bring awareness to its products and services....what stage of the marketing process is it?
A.) Introduction
B.) Growth
C.) Maturity
D.) Decline
A.) Introduction
In business management....what is the forestry, mining, and farming department called?
A.) Manufacturers
B.) Processors
C.) Producers
D.) Non-profit organizations
C.) Producers!
Explain the difference between a command and market economy.
A command economy typically refers to an economy that it strictly overseen by the government, while a market economy is supply-demand driven with minimal government intervention.
Cons!
- Lack capital funds- Lack of liability protection
Pros!
- You boss yourself
- Relatively simple to start (not much legal stuff)
Put simply, interest is the added percentage of price paid for borrowing money. If you aren't careful to repay loans you might be entitled to pay additional interest (or money back) to the loaner.
If Rama sought to increase the popularity of his fitness app that reaches teens over 12 years old, where is the best place to put advertising. PICK ONE
1.) Instagram, YouTube, Social Media
2.) Mail and letters
3.) Billboards
4.) Door-to-door (going to their houses) marketing
1.) Instagram, YouTube, Social Media.
How does an non-profit organization differ from an service business?
Service businesses offer services typically at a set cost, while non-profit organizations offer services free of charge, are government/crowd funded, and usually directed towards philanthropic efforts.
Aggregate economic activity is characterized by which of the following? (there is four big ones, but just name as much as possible)
Income
Sales completed
Employees hired (employment)
If Mary organizes her business team where each leader/director manages their own smaller team based off the job description they have this is known as....
1.) Product Organization
2.) Functional Organization
3.) Geographic Organization
2.) Functional Organization!
Define these terms in simple terms.
1.) Wealth accumulation
2.) Capital acquisition
3.) Aggregate
1.) Saving money by earning/investing money
2.) Receiving assets or money for funding
3.) The sum of something
Name if the following are non-profits, service firms, producers, processors, or intermediaries.
- Costco. (Buy goods from manufacturers, sell it to other retailers, and sell it to customer at wholesale.)
- American Red Cross (Free disaster relief, blood donation, service organization)
- Intuit (Accounting and bookkeeping business)
- Youth Passion Project (Education and passion exploration instructional program for students)
1.) Costco: Intermediary
2.) American Red Cross: Non-profit
3.) Intuit: Service
4.) Youth Passion Project: Non-profit
WE HAVEN'T LEARNED THIS!!!!!
As supply goes up, demand goes _up/down_, and prices have to get _lower/higher_, to make profit again.
1.) down
2.) lower
The process of dividing an organization into distinct units or departments based on specific criteria such as geography, function, product, customer, or process.
Paul is deciding whether he may be able to afford a new home which costs $200,000. Here is his balance sheet.
Monthly salary after taxes: $9,000
Assets: $20,000 through mutual funds, $90,000 through index funds, $80,000 in bank, and $10,000 bond.
Liabilities: Student loans ($50,000)
To the nearest whole month, how many months will he be able to afford a new home?
About 5 months.
In Abraham Maslow's hierarchy of needs....why was it created? And tell me the order of the needs.
(its not in order, try arranging it)
- basic needs
- self-actualization
- belonging and love
- self-esteem
- safety
A way for employers to know what employees need.
Most important to least important.
1.) Self-actualization
2.) Self-esteem
3.) Belonging and Love
4.) Safety
5.) Basic Needs