Deca economics performance indicators

What is global trade?

Trade conducted between different self-governing states where one nation purchases goods it doesn't produce and sells goods it produces.

How does global trade affect retailing?

It expands the customer base for retailers and allows communication and transactions across distances via the Internet.

What is the difference between economic goods and services?

A good is tangible and can be used or consumed, while a service is intangible and involves someone doing something for you.

What is the role of business in society?

To innovate and deliver products and services, use resources efficiently, and conduct operations profitably and acceptably by society.

What are the four types of economic systems?

Traditional economy, market economy, command economy, and mixed economy.

What is profit?

A positive return on an investment, calculated as the difference between revenue and costs.

How can a business increase profit?

By increasing revenue or decreasing expenses.

What is competition in economics?

The struggle between businesses for customers, which stimulates innovation and efficiency, and can drive down prices.

What is productivity?

The output of work per worker, often measured per hour.

How can productivity be increased?

Through automation, advanced employee training, or easier-to-use equipment.

What is the nature of financing in business?

Financing provides funds for activities, with long-term funds from ownership equity and short-term funding from banks.

What is supply in economics?

The amount of output available in the market.

What is demand in economics?

Economic want backed up by purchasing power.

What does the theory of supply and demand explain?

How prices vary based on the balance between product availability (supply) and consumer purchasing power (demand).

What are economic utilities?

The ability of a good or service to satisfy consumer needs or wants, including form, place, time, and possession utilities.

What is the relationship between government and business?

Businesses must adhere to laws, pay taxes, and the government smooths out the business cycle.

What are production decisions focused on?

What goods to produce, how to produce them, costs, and optimizing resource inputs.

What is division of labor?

The specialization of cooperative labor in specific tasks to increase efficiency.

What are operating costs?

Recurring expenses related to the operation of a business, including overhead/fixed costs and variable costs.

What is the economic problem?

How to make the best use of limited resources to satisfy endless needs and wants.

What are economic resources?

Resources used in production, including land, labor, and capital goods.

What is risk in business?

The expected losses from a risky event and the probability of that event occurring.

What factors affect a business's profit?

Sales, expenses, demand for goods/services, prices, the economy, and chance.

What are promotional methods in the hospitality and tourism industry?

Advertising, personal selling, sales promotion, and public relations.

What is a subscription business model?

A model where customers pay a recurring payment for access to a service or product.

What is a franchise business model?

An established business blueprint purchased and reproduced by a franchisee with support from the franchiser.

What is a franchise?

A franchise is an established business blueprint purchased and reproduced by the buyer, the franchisee.

What is the role of the franchiser?

The franchiser works with the franchisee to help with financing, marketing, and other business operations.

What does a franchisee pay the franchiser?

A percentage of the profits.

What does the manufacturer model refer to?

It refers to when a manufacturer converts raw materials into a product.

What is the retailer model?

It involves purchasing goods from distributors and selling them to customers for profit.

Why is business ethics important?

It helps maintain a good reputation, balances stakeholder needs, aids in employee retention, and prevents legal penalties.

What are the six general business activities?

Generating ideas, raising capital, employing and training human resources, buying and selling goods and services, marketing, and maintaining records.

What is cost/benefit analysis?

A process used to measure the benefits of a decision minus the costs associated with that action.

What factors should be considered when hiring staff?

Eligibility, physical skills, experience, mindset, method of working, and communication skills.

What determines prices and quantities in a market-oriented economy?

Supply and demand.

What is supply in economic terms?

The amount of goods and services producers are willing to make and sell.

What is demand in economic terms?

The willingness and ability of consumers to buy goods and services.

What happens when supply equals demand?

Equilibrium exists in the marketplace.

What is a surplus?

A situation where there is more supply than demand for a product.

What is a shortage?

A condition where demand exceeds supply.

How does technology impact retailing?

It streamlines inventory management and makes supply chain processes more efficient.

What is business risk?

The possibility of incurring a loss.

What are economic risks?

Risks that can result in a financial loss.

What is pure risk?

A risk that presents the chance of loss but no opportunity for gain.

What is speculative risk?

A risk that offers the chance to either gain or lose.

What is marketing management?

The planning, organizing, controlling, and implementing of marketing programs to create and satisfy demand.

What are ethical business practices?

Practices that ensure high standards of conduct in relationships with stakeholders.

What is the impact of hospitality on the economy?

It creates direct employment and further employment in related industries.

What is the purpose of a menu in management?

To inform customers about food choices and available services.

What are gratuities?

Informally known as tipping, they are rewards for services performed.

What is cultural sensitivity?

Awareness of cultural differences in business mindsets and practices.

What is self-esteem?

Confidence in one's own worth or abilities.

What are desirable personality traits for business?

Persistence, adaptability, risk assessment, continuous learning, creativity, and self-reliance.

What is bias?

A personal preference or unfair preference for or dislike of something.

What is a stereotype?

An oversimplified and unfair category applied to someone.

What skills are included in problem-solving?

Decision-making, reasoning, and creativity.

What does enthusiasm in the workplace indicate?

A strong interest and positive outlook towards one's job.