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

Ethical Business Conduct

T6- "Do to others as you would like them do to you". Business ethics involve describing inappropriate behaviors (taking gifts, bribing government officials, misrepresenting data, discriminatory practices, boycotting third parties). Maximization: Produce quality products at low costs. Codes: Control ethical behaviors (have employees adopt standards, write contracts that align interests, write codes of ethics, and provide training).

Financial Management

T7- Goal: Maximize shareholder wealth. Financial management in a typical corporation: Board of directors – Chief Executive Officer (CEO). The CEO oversees the (A) Chief Operating Officer (COO) and (B) Chief Financial Officer (CFO). The CFO is responsible for the (Bi) Controller...

Business Name - A name or title under which a person or entity conducts a business.

Business Domain - A business's website address or URL on the internet that gives you an online identity or brand. It's a valuable part of your business identity and is an important marketing tool that can help customers find and identify with your business.

Trade Practices Legislation - The business owner must comply with trade practices legislation when establishing his or her business. The Competition & Consumer Act 2010 (Cwlth) is a federal law that specifies what business behavior is acceptable in relation to a wide range of issues.

Business Tax Compliance - A means by which governments finance their expenditure by imposing charges on citizens and corporate...

Distribution Channels

Exclusive Distribution (Lamborghini)

• Intermediary gains exclusive rights to sell product in specific geographic area.
• Limited number of intermediaries.
• Stronger distributor support.
• Greater control over product.
• Enhanced brand image.
• Higher markups.
• Exclusive dealing arrangements.

Selective Distribution (Apple)

• Manufacturer selects limited number of stores to sell product.
• Selection based on objective criteria.
• Maintains relative control.
• Expects above-average sales effort.

Intensive Distribution (Hacendado Products)

• Producer uses as many specialized outlets as possible to provide:
• Maximum brand exposure.
• Consumer convenience.

Extensive Distribution (Kit Kat)

• Producer uses as many outlets as possible (of any category) to provide:
• Maximum

Chapter 2

Paragraph Structure:

• Topic sentence: states the topic and introduces the main idea

• Body sentences: support the topic sentence

• Concluding sentence: restates the main idea and ends the paragraph

Steps to develop:

Narrow the topic: make it more specific. You can use brainstorming, questioning, or freewriting.

Topic sentence: it introduces the topic to the paragraph, it states the paragraph’s controlling idea, it is the most general sentence in the paragraph, and it is followed by other sentences that provide supporting facts and examples.

Controlling idea: writer’s opinion or attitude

Supporting ideas: facts and examples that provide the reader with interesting information about the subject matter

You can organize your ideas in:

Time order:...

Definitions:

• Transport: The transfer of people and goods from one place to another.
• Shopping Center: This is a large complex which includes small specialty shops.
• Import: Purchase of goods and services that a country performs abroad.
• Ecotourism: Focuses on the knowledge of nature and the ecological value of protected areas.
• Balance of Payments: Reflects all economic transactions by a country with the rest of the world during a period of time.
• Charter Flight: A flight booked by a tour operator to transport passengers to a holiday destination, when passenger demand requires it.

Two Types of Internal Trade:

• Wholesale: The company conducts a business that purchases goods in bulk directly from producers for resale to retailers.
• Retail: The retail business

Orthodoxy

Under pressure from the IMF, Belaúnde was forced to reduce the budget, increase public utility rates, and devalue the national currency, the sol. Thus, the currency was worth less, and more had to be spent to import a product. The IMF measures resulted in a severe recession (contraction of demand), which impacted the citizens' finances. The poorer citizen consumes less and, as they consume less, pays less tax. In 1984, the Belaúnde government fell into arrears with the payment of its external debt.

Heterodox Program

The payment of external debt was limited to 10% of Peruvian exports. A new currency, the inti, was introduced, replacing the devalued sol. Basic prices, wages, and the exchange rate on the dollar were frozen. By avoiding

Key Economic Indicators

Introduction

Economic indicators help us understand the national economic situation. But who studies these indexes?

• Microeconomics: The study of how households and firms make decisions and interact in the market.
• Macroeconomics: The study of phenomena that affect the whole economy.

Consumer Price Index (CPI)

The CPI is an indicator of the cost of goods and services purchased by a typical consumer.

How is the CPI Calculated?

1. The basket is set.
2. Prices are found, and the value of the basket is calculated.
3. A base year is chosen, and the index is calculated.
4. The inflation rate is estimated.

Dollar

The dollar is the most widely used foreign currency in Chile and is responsible for various transactions, mainly abroad.

Gross Domestic Product

Economic Expectations

Economic expectations are assumptions people make about the future. They guide individuals, businesses, and governments in their decision-making processes. Companies analyze their own situation, their competitors, and the economic climate to adapt their strategies. This includes investment and production decisions, which can shift the supply curve.

Industrial Structure

In developed countries, most people work in the tertiary sector (services), while manufacturing and agriculture are less prominent. This pattern differs in emerging and non-developed countries.

GDP and Economic Well-being

Gross Domestic Product (GDP)

GDP measures the total value of goods and services produced in an economy annually, indicating its size and evolution....

Microeconomics vs. Macroeconomics

Microeconomics studies the individual decisions of economic decision-makers (companies and consumers as individuals).

• Macroeconomics studies the economy as aggregate decisions of economic decision-makers (groups of consumers, producers, and the government).
  • The government is a group that oversees a community, establishing rules and administering public policy.
  • Some governments are more interventionist at the economy (North Korea, Cuba) than others (US). They make key decisions about what will be produced, how it will be produced, and who will receive the outputs supplied by business.
  • The role of government is to create and administer policy at local, national, and international levels.
  • Locally: they establish rules,

Customer Service

Importance

One of the objectives of a company is customer loyalty and customer satisfaction.

It is more expensive to get new customers than to keep those you have.

Principles of Customer Service

• Customers are the most important individuals.
• The company depends on customers (not the other way around).
• Companies exist because customers exist; customers are our "work".
• Customers seek a good or service that should be provided.
• Customers are not a number; they must be treated with respect.
• The customer is the backbone of the company.

Customer Service Department

The entire staff should be involved in providing adequate customer care.

They don't only handle complaints, but also gather information through claims or suggestions.

It should provide: