Essentials of Economics: Part I PDF

Remote Control: Advertising in Trouble What is a CTV? How has it affected advertising? Or what changes have advertisers had to make? How has the internet changed the way we watch TV? Can you think of any ways the internet has changed the way TV shows are made? (hint: think in terms of plot and st...

Remote Control: Advertising in Trouble What is a CTV? How has it affected advertising? Or what changes have advertisers had to make? How has the internet changed the way we watch TV? Can you think of any ways the internet has changed the way TV shows are made? (hint: think in terms of plot and story) Essentials of Economics: Part I Business Fundamentals Contents Competition Entrepreneurship Needs and Wants Success Criteria I will be successful when I can ………………. Understand how competition in a given industry benefits the consumer through increased choice and innovation Define Entrepreneur Distinguish between consumers needs and wants Competition The more competition there is, the more consumers gain. Competition Pricing Consumer Purchasing Power Power Entrepreneurship Entrepreneurs are people who start their own business. Because of competition, many people become entrepreneurs if they believe they can offer a good or a service that is better than someone else’s. Entrepreneurship Competition leads to innovation (new and improved ways of doing things) and new inventions. This makes older products obsolete. Obsolete – no longer used or produced, out of date E.g. Audio tapes → CDs → MP3s → Smartphone Streaming Worksheet Take 20 minutes to complete the Worksheet Activity: Obsolescence https://www.youtube.com/watch?v=la7ZX0yxzw8 https://www.youtube.com/watch?v=bcKgzIvqsIk SUCCESS CRITERIA I will be successful when I can……………………… Understand how competition in a given industry benefits the consumer through innovation Quick Question What is the difference between a need and a want? A need is something necessary for survival such as food and shelter. A want is something that is not necessary for survival but adds pleasure or comfort to life.  Needs and Wants fall along a spectrum If someone were to receive an unexpected pay-cut, the first thing they would stop buying falls furthest away from “need” on the spectrum ie. Travel Spending or a New Car The last things they would cut are fundamental needs Needs and Wants When coming up with a business idea. We usually ask how our idea is able to satisfy consumers’ needs and wants. Needs and Wants Businesses innovate when they come up with better ways to satisfy our needs and wants. E.g. CDs provided digital audio and the ability to skip tracks. MP3 players were able to store thousands of songs in a very small package. Streaming Discussion Discussion Question: Is there a good or service that is being promoted as “new and improved” that you think is actually worse than the good or service it is replacing? Success Criteria I will be successful when I can ………………. Understand how competition in a given industry benefits the consumer through increased choice and innovation Define Entrepreneur Distinguish between consumers needs and wants Your Turn Read p. 15-19 Answer these questions on Page 22 10. What is an entrepreneur? What kind of characteristics should entrepreneurs have? 11. What is the difference between a need and a want? Explain how your needs and wants have changed over the years. 12. Give an example of a good or service that is currently being promoted as “new and improved”