Notes, summaries, assignments, exams, and exercises for Economics for Secondary education

The Depression led to a loss of confidence in the economic future and major political changes. In the 1932 presidential election, Franklin D. Roosevelt (Democrat) swept to a landslide victory over Herbert Hoover (Republican). FDR argued that the Depression was due to faults in the capitalist economy and proposed government intervention to remedy the situation. FDR had been confined to a wheelchair since an attack of polio in 1921, and his long battle to rebuild his career had deepened his empathy with human suffering. He was the first president of the radio age and understood the importance of transmitting confidence.

The New Deal programs (1933-39) aimed to stabilize the economy, regulate commercial institutions, create internal demand, and...

Chapter 1: Introduction to Economics

1. Scarcity

What do economists mean when they state that a good is scarce?

d. The amount of the good that people would like exceeds the supply freely available from nature.

2. Economic Choice and Competitive Behavior

Economic choice and competitive behavior are the result of:

d. scarcity.

3. Marginal Cost

Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is:

$1.

4. Opportunity Costs

The expression, "There's no such thing as a free lunch," implies that:

c. opportunity costs are incurred when resources are used to produce goods and services.

5. Economic Way

International Trade: Barriers, Payments, and Protectionism

• Trade Barriers: Tariff or non-tariff measures.
• Balance of Payments: When trading, financial transactions occur among consumers worldwide, creating constant money flow. This is "the system of accounts that records a nation's international financial transactions, transactions between inhabitants and worldwide, using a double-entry bookkeeping system."
• Payments:
  • Goods imported
  • Spending by tourists
  • Outside investment
  • Foreign military spending
  Receipts:
  • Exports
  • Transportation payments
  • Payments from FDI abroad
• Accounts:
  • Current Account: Export and import of goods and services.
  • Capital Account: Record of investment (direct, portfolio, short-term).
  • Reserves: Export and import of gold, changes in foreign

1. Perspectives of Marketing

Marketing is viewed through two primary lenses: Philosophy and Technique.

2. The Marketing Mix

The concept of the marketing mix was first introduced by Neil Borden.

3. Marketing Orientation

Not all companies are marketing-oriented; organizations can be either Sales-oriented or Marketing-oriented.

4. The 4 Ps vs. The 4 Cs

From a customer's point of view, the 4 Ps of marketing (Product, Price, Place, Promotion) evolve into the 4 Cs (Customer value, Cost, Convenience, Communication).

5. Sales Management Decisions

Sales management includes the following key areas:

• Strategic decision-making
• Selection and training
• Motivation
• Supervision and compensation of the sales team

6. Marketing Department Structure

Marketing departments are typically...

Stakeholder PRO

Get to know stakeholders better — relative importance, power & interests — better managed relationships — risks identified.

• Make better strategies & decisions.
• Greater acceptance of organisation actions by stakeholders.

Cons:

• Best done on a continuous basis.
• Assessment or analysis may be subjective.
• Maybe not all stakeholder interests can be met at the same time — focus on the most important stakeholders; balance and reconcile all interests according to importance or urgency.

4P — Product / Service

1. What does the customer want from the product, plan, or service?
2. What features does it have to meet these needs?
3. Are there any features you've missed out?
4. Are you including costly features that the customer won't actually use?

International Marketing

Key Concepts

Market Potential

The total number of units of a product that could be sold by all companies in a specific international market.

Sales Potential

The percentage of market potential a specific company expects to sell in a specific international market.

Market Types

Industrial Market

Companies purchasing equipment and machinery.

Consumer Market

Represents over 50% of GDP in developed countries.

Government Market

Similar to industrial markets, but focused on major projects.

Marketing Strategies

Marketing Research

Collects information at a specific time to aid marketers' decisions.

Standardization

Using the same marketing strategies internationally as domestically.

Adaptation

Using different marketing strategies internationally...

Key Supply Concepts

The following terms are fundamental to understanding how supply operates in a market.

Supply Schedule Defined

Supply Schedule: A listing of the various quantities of a particular product that a producer would supply at all possible prices in the market.

Understanding the Supply Curve

Supply Curve: A graph that shows the quantities supplied at each possible price in the market.

The main thing to remember is that all normal supply curves have a positive slope that goes up when you read the diagram from left to right.

Changes in Supply

Change in Supply: A situation where suppliers offer different amounts of a product for sale at all possible prices in the market.

Factors Influencing Supply Changes

• Cost of resources
• Productivity
• Technology
• Taxes
• Subsidies
• Government

Concept of Business

Business refers to those economic activities involving the purchase, production, and/or sale of goods and services with a motive of earning profit by satisfying human needs in society.

Characteristics of Business

• An Economic Activity: Business is considered an economic activity as it is undertaken with the objective of earning money.
• Production or Procurement of Goods and Services: Business includes all the activities concerned with the production or procurement of goods and services for sales. Services include transportation, banking, insurance, etc.
• Sale or Exchange of Goods and Services: There should be a sale or exchange of goods and services between the seller and the buyer.
• Dealing in Goods and Services on a Regular Basis:

Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) is the attribute or characteristic that makes a business special and differentiates it from the competition in the minds of customers.

External Stakeholders

External stakeholders include:

• Local community – e.g., local farmers, herders, and villagers.
• Government – e.g., central and regional.

Target Profit Formula

The target profit formula is:

Target Profit Quantity = (Fixed Cost + Target Profit) / (Price - Variable cost per unit)

Example: (800,000 + 400,000) / (10,000 - 5,000) = 240 trekkers

Impact of Changes in 2014

In 2014, the following changes occurred:

• Annual fixed costs increased by 20%.
• Rising fuel costs of flights increased average variable costs by 40% per trekker.
• The average