4092872
Description
Flashcards by niza telting, updated more than 1 year ago
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Created by niza telting
about 9 years ago
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| Question | Answer |
| Economics | The study of how society manages its scarce resources |
| Scarcity | The excess of human need over what can be produced |
| Economic Activity | when people (consumers, managers) make choices to maximize their prosperity using scarce resources. |
| European union | •The Netherlands •Spain •Finland •Portugal •France •Italy |
| Markets and products | demand, supply, negotiation & prices |
| Geographic dimensions | world market, local markets, national market & relevant market |
| Business sector | companies that make same sorts of products using similar production methods. A business sector usually supplies a group of markets. |
| Values | Intangible things worth striving for |
| Norms | Behavioral rules |
| Institutions | Motivation and sanction Laws and regulations |
| Market regulation | a market where the government controls the forces of supply and demand , such as who is allowed to enter the market or what prices may be charged. |
| Market mechanism | Means by which the forces of demand and supply determine prices and quantities of goods and services offered for sale in a free market. |
| Price elasticity of demand (Price sensitivity) | To what extent the quantity demanded will react to price changes |
| Elastic & Inelastic | Elastic - Price change causes great change in demand. (Luxury good) (X > 0) Inelastic - Price change causes little change in demand. (Basic good) (-1> X < 0) |
| SUPPLY production factors | labor, nature and capital |
| constant or fixed costs | Costs that are not dependent on production volume |
| Variable costs | are dependent on the production volume |
| equilibrium | if demand and supply are equal |
| internal competition and external competition | Internal competition: the battle for market share. External competition: |
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