Podcast
Questions and Answers
What are the basic survival needs critical for human existence?
What are the basic survival needs critical for human existence?
- Entertainment, hobbies, and technology
- Healthcare, fitness, and socializing
- Travel, education, and luxury items
- Food, clothing, and shelter (correct)
Which of the following factors does NOT affect demand?
Which of the following factors does NOT affect demand?
- Changes in consumer income
- Trends in consumer taste
- Number of producers (correct)
- Customer expectations
What does the Law of Supply state about price and quantity supplied?
What does the Law of Supply state about price and quantity supplied?
- Higher demand leads to lower prices
- Supply is unaffected by changes in price
- As price increases, quantity supplied increases (correct)
- As price decreases, quantity supplied decreases
What best describes market equilibrium?
What best describes market equilibrium?
Which business structure involves ownership by a single individual?
Which business structure involves ownership by a single individual?
What is a characteristic of an oligopoly market structure?
What is a characteristic of an oligopoly market structure?
How is profit or loss calculated in a business?
How is profit or loss calculated in a business?
Which of the following is NOT an advantage of a partnership?
Which of the following is NOT an advantage of a partnership?
What is a primary disadvantage of establishing a corporation?
What is a primary disadvantage of establishing a corporation?
Which of the following is NOT a key concept of Corporate Social Responsibility (CSR)?
Which of the following is NOT a key concept of Corporate Social Responsibility (CSR)?
What factor is considered a barrier to international business?
What factor is considered a barrier to international business?
Which of the following best describes a co-operative?
Which of the following best describes a co-operative?
What is one of the factors of production?
What is one of the factors of production?
Which of the following is a component of the marketing mix known as the Four Ps?
Which of the following is a component of the marketing mix known as the Four Ps?
What does the Current Ratio formula assess in business?
What does the Current Ratio formula assess in business?
In which business type is the primary motive profit generation?
In which business type is the primary motive profit generation?
What is double taxation in relation to corporations?
What is double taxation in relation to corporations?
Which of the following defines the term 'sustainability' in a business context?
Which of the following defines the term 'sustainability' in a business context?
Flashcards
Demand
Demand
The quantity of a good or service that consumers are willing and able to buy at a particular price.
Law of Demand
Law of Demand
When prices decrease, consumers buy more, increasing demand.
Supply
Supply
The quantity of a good or service that businesses are willing and able to provide within a range of prices.
Law of Supply
Law of Supply
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Market Equilibrium
Market Equilibrium
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Disequilibrium
Disequilibrium
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Solvent Business
Solvent Business
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Monopoly
Monopoly
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Corporation
Corporation
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Co-operative
Co-operative
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Franchise
Franchise
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Retail Business
Retail Business
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Service Business
Service Business
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Manufacturing Business
Manufacturing Business
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Business Ethics
Business Ethics
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Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
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Production Process
Production Process
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Factors of Production
Factors of Production
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Study Notes
Economic Basics
- Basic Needs: Food, clothing, and shelter are essential for survival.
- Wants: Non-essential items that add comfort or pleasure.
- Attracting Consumers: Introduce new or improved products/services, promote current trends, and compete effectively with similar firms.
- Demand: The quantity consumers are willing and able to buy at a specific price. Conditions include: consumer awareness, price, supply, and accessibility.
- Law of Demand: As prices decrease, demand increases; as prices increase, demand decreases. Inverse relationship.
- Factors Affecting Demand: Consumer income, changing tastes, consumer expectations, and population changes.
- Supply: The quantity businesses are willing and able to provide at a range of prices.
- Law of Supply: As prices increase, supply increases. Direct relationship.
- Factors Affecting Supply: Number of producers, price/technology changes, and production costs.
- Price and Equilibrium: Market equilibrium occurs when supply equals demand at a specific price. Disequilibrium leads to surplus or shortage.
- Key Terms:
- Supply Schedule: A chart showing the relationship between quantity supplied and price.
- Profit/Loss Calculation: Revenue - Expenses = Profit/Loss.
- Solvent Business: A business that meets all financial obligations.
- Market Structures:
- Monopoly: Single seller controlling supply.
- Oligopoly: Few sellers dominate.
- Perfect Competition: Many sellers competing equally.
Business Forms of Ownership
- Sole Proprietorship: Owned and run by one person.
- Advantages: Easy management, owner keeps all profits.
- Disadvantages: Unlimited liability, funding limited to owner's resources.
- Partnership: Two or more people operating together sharing profits and responsibilities.
- Advantages: Shared resources, increased productivity.
- Disadvantages: Shared liabilities, potential for conflicts.
- Corporation: A separate legal entity owned by shareholders.
- Advantages: Limited liability for shareholders, potentially higher tax benefits.
- Disadvantages: High startup costs, double taxation.
- Co-operatives: Owned by workers/members, profit not the primary motive.
- Franchise: Franchiser licenses its business model to a franchisee.
- Advantages: Established model, high success rate.
- Disadvantages: High initial investment, limited operational freedom.
Types of Businesses
- Retail: Buys and resells goods to consumers.
- Service: Provides services.
- Manufacturing: Produces goods.
- Crown Corporations: Owned and operated by the government.
Business Ethics and Social Responsibility
- Ethics: Moral principles guiding decision-making.
- Corporate Social Responsibility (CSR):
- Safe workplace, fair labor practices, environmental protection, avoiding discrimination and false advertising, supporting charitable causes.
Workplace Safety
- OHSA (Occupational Health and Safety Act): Defines employee rights and responsibilities to ensure a safe workplace.
Environmental Responsibility
- Sustainability: Practices that minimize environmental impact, such as reducing pollution and resource conservation.
International Business
- Benefits: Access to wider markets, potentially lower labor costs, higher quality/quantity of goods, and access to resources.
- The 5 Ps: Product, Price, Proximity, Preference, Promotion.
- Barriers: Tariffs, social costs (e.g., offshore outsourcing, labor abuses, environmental degradation).
Functions of Business
- Production: The process of creating goods or services.
- Factors of Production: Natural resources, raw materials, labor, capital, and information, management.
- Production Process Steps: Purchasing raw materials, processing them, quality control, and grading.
Human Resources
- Importance: Productivity, skilled labor, positive attitudes.
- Employee Rights: Safe workplace, fair wages and hours, equal opportunity.
Marketing
- 4 Ps: Product, Price, Place, Promotion.
- 2 Cs: Competitive Market, Consumer Market.
Accounting
- Key Concepts: Assets, liabilities, owner's equity.
- Income Statement Examples:
- Service Business: Revenue - Expenses = Net Income.
- Retail Business: Revenue - Cost of Goods Sold = Gross Profit.
- Formulas: Working capital, current ratio, gross profit percentage.
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Description
Test your understanding of core economic concepts including basic needs, wants, supply, demand, and pricing strategies. This quiz covers essential principles that govern consumer behavior and market dynamics. Challenge your knowledge on how these factors interact within the economy.