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Economics (Economic agents (Agents: the poeple who makes, sells, and buys…
Economics
Economic agents
Agents: the poeple who makes, sells, and buys ( ex, consumers, producers, governament)
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producers: their aim is to make profit, and to get more products based on the company.
governemnt: Resposible for infroestructure, get/collect taxes.
Banks: they give loans for people who are starting a business, ferms and conumers/house holds.
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scarcity
Resources and limitless wants. people make deciosions about how to allocate sresources effiecntly , in order to satistfy basic needs, and as many additional wants as possible.
people have unlimited awants, but resources are limitted. the dollar spent on rentm wages and raw materials are dollars that dont go towards profit.
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compromise: To gain one resource, you must cut back on another.
Factors of production
Capital goods: a man made factor of production used by labor in making other products, includes tools, factories, machines, etc...
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natural resources: productive resources that are provided by nature such as land, air, water, forests, coal, iron ore, oil and minerals
Enterpreneurship: The individual responsible for combining and organizing natural resources, capital goods and labor to porduce a good service. role could ivnolve assuming the risk of business failure and/or providing the creativity and managerial skills necessary for production to take place.
business reflection
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Advertising
Advertisement is a way of makeing people have a notice of your product, its an announcement. Advertising is the activity/ profession of producing advertisements for commercial products or services. Its a way of a brand expansion.
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Branding
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Branding is a away to organize companies by there product title, it increases the demand for a good or service. companies use brandings to get the customers confidence, increase costumers, increase there loyalties, etc...
Product lifecycle
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Everyproduct has its life cycle, where its introduced into the market, when it starts popularizing, when it stops popularizing and finnally when consumers dont buy them any more. Every product is different, some products might even take longer to have its decline.and etc...
Demand and supply graph
Demand
Buyers exhibit both willingness and ability to purchase good and services. depending on the perchase in response to prices. Howpeoples buying habits change i response to prices. quantities that conumsers will buy at different price levels. the demand curve is a device that shows the difference between price and quantities.
supply
Sell finished goods and services. quantity of goods and services that businesses are willing to porduce in different prices during a certain period of time. how business's production habits change n response to price
Achieving equilibrium
Where the demand and supply curves intersect is the equilibrium that determines th point at whihc price and quantity sol are determined.
foreign aid
pros: it can help poverty in pour countries. it involves countries the donor countries and the recipient coutnries. foreign aid help other countries to be more independent.
Cons: doesnt go to the poeple because of corruption. giving leans only leave these poor ountries deeper in debt and poverty.
The problem of choice
resources are scare, product of any good involves choices.
B and D: represents efficient use of countrys resources. R: inefficient use of resources. K: unnattainable combination because the coutnry rdoes not posses suficient resources to poduce two combinations.
Opportunity cost:
You have the opportunity to by two things. b ut with the oney that you have you can only buy one. SO you used that opportunity whcih comes with a cost which is that you cant buy lor make another product that is made from the same resources.
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