Economic Performance Indicators (Principle)

Distinguish between economic goods and services (EC:002) (CS)

Economic goods are tangible products that satisfy needs and wants, such as clothing or food, while economic services are intangible activities performed for consumers, such as banking or healthcare. Both contribute to economic activity and have monetary value.

Explain the concept of economic resources (EC:003) (CS)

Economic resources, also known as factors of production, include land (natural resources), labor (human effort), capital (tools, equipment, and technology), and entrepreneurship (innovation and risk-taking). These resources are necessary for producing goods and services.

Describe the concepts of economics and economic activities (EC:001) (CS)

Economics is the study of how individuals, businesses, and governments allocate limited resources to satisfy needs and wants. Economic activities include production, distribution, and consumption of goods and services, which drive market economies.

Determine economic utilities created by business activities (EC:004) (CS)

Economic utility refers to the value added to a product or service to satisfy consumer needs. Businesses create utility through form (product design), time (availability), place (distribution), possession (ownership transfer), and information (marketing)

Explain the principles of supply and demand (EC:005) (CS)

Supply and demand determine market prices and availability of goods and services. When demand increases and supply remains constant, prices rise. Conversely, if supply increases and demand stays the same, prices fall. Equilibrium occurs where supply meets demand.

Describe the functions of prices in markets (EC:006) (CS)

Prices signal supply and demand levels, allocate resources efficiently, and incentivize production and consumption. Higher prices encourage producers to supply more, while lower prices increase consumer purchases, balancing the market.

Explain the role of business in society (EC:070) (CS)

Businesses provide goods, services, jobs, and innovation, driving economic growth. They contribute to communities through corporate social responsibility, taxes, and philanthropy, enhancing overall quality of life.

Describe types of business activities (EC:071) (CS)

Business activities include operations (production and logistics), marketing (promotion and sales), finance (budgeting and investment), and human resources (employee management). Each function supports overall business success.

Describe types of business models (EC:138) (SP)

Business models define how a company generates revenue and delivers value. Common models include product-based businesses, service-based businesses, shared assets, subscriptions, leases, insurance, reselling, and agency/promotion.

Explain the organizational design of businesses (EC:103) (SP)

Organizational design refers to a business’s structure, including hierarchy, roles, and communication flow. Common structures include functional, divisional, matrix, and flat organizations, each affecting decision-making and efficiency.

Discuss the global environment in which businesses operate (EC:104) (SP)

The global business environment includes economic, political, legal, technological, and cultural factors that influence international trade. Companies must adapt to varying regulations, currency fluctuations, and market conditions.

Describe factors that affect the business environment (EC:105) (SP)

The business environment is shaped by economic trends, government policies, competition, consumer preferences, and technological advancements. Businesses must monitor these factors to remain competitive.

Explain the nature of business ethics (EC:106) (SP)

Business ethics involves principles guiding fair and responsible decision-making, including honesty, transparency, and social responsibility. Ethical businesses build trust, enhance reputation, and foster long-term success.

Explain how organizations adapt to today's markets (EC:107) (SP)

Organizations adapt by embracing innovation, responding to consumer trends, leveraging technology, and adjusting business strategies to remain competitive in changing economic landscapes

Explain the types of economic systems (EC:007) (CS)

Economic systems determine how goods and services are produced and distributed. The four main types are traditional (custom-based), command (government-controlled), market (free enterprise), and mixed (combination of command and market).

Identify the impact of small business/entrepreneurship on market economies (EC:065) (CS)

Small businesses and entrepreneurs drive innovation, create jobs, and increase competition. Their adaptability fosters economic growth and market diversity.

Explain the concept of private enterprise (EC:009) (CS)

Private enterprise is an economic system where businesses operate with minimal government control, allowing individuals to create, own, and manage companies while competing in free markets.

Identify factors affecting a business's profit (EC:010) (CS)

Profit is influenced by revenue, expenses, pricing strategies, production costs, market demand, and competition. Businesses must manage these factors to maximize profitability.

Determine factors affecting business risk (EC:011) (CS)

Business risks include financial instability, competition, changing regulations, economic downturns, and operational challenges. Companies mitigate risk through planning and diversification.

Explain the concept of competition (EC:012) (CS)

Competition occurs when businesses vie for customers by offering better products, prices, or services. It drives innovation, improves quality, and benefits consumers through more choices.

Determine the relationship between government and business (EC:008) (CS)

Governments regulate businesses through laws, taxes, and policies while also supporting them through subsidies, trade agreements, and infrastructure development.

Describe the nature of taxes (EC:072) (SP)

Taxes are mandatory payments to governments that fund public services. Businesses pay income, sales, and corporate taxes, impacting their operations and pricing.

Explain the concept of productivity (EC:013) (CS)

Productivity measures output per unit of input, such as labor or materials. Higher productivity increases efficiency, lowers costs, and boosts economic growth.

Analyze impact of specialization/division of labor on productivity (EC:014) (SP)

Specialization allows workers to focus on specific tasks, improving efficiency and output. Division of labor enhances productivity by streamlining processes.

Explain the concept of organized labor and business (EC:015) (SP)

Organized labor involves unions representing workers in negotiations for fair wages, benefits, and working conditions, balancing employer-employee relations.

Explain the impact of the law of diminishing returns (EC:023) (SP)

The law of diminishing returns states that increasing input (e.g., labor) beyond a certain point results in lower productivity and efficiency.

Discuss the measure of consumer spending as an economic indicator (EC:081) (SP)

Consumer spending reflects economic health. High spending signals economic growth, while low spending may indicate recession.

Describe the economic impact of inflation on business (EC:083) (SP)

Inflation reduces purchasing power, increases costs, and affects pricing strategies. Businesses must adjust to maintain profitability.

Explain the concept of Gross Domestic Product (GDP) (EC:017) (SP)

GDP measures the total value of goods and services produced in a country. It indicates economic performance and growth trends.

Discuss the impact of a nation's unemployment rates (EC:082) (SP)

High unemployment reduces consumer spending, slowing economic growth, while low unemployment boosts demand and business activity.

Explain the economic impact of interest-rate fluctuations (EC:084) (SP)

Rising interest rates increase borrowing costs, reducing business expansion, while lower rates encourage investment and consumer spending.

Determine the impact of business cycles on business activities (EC:018) (SP)

Business cycles, including expansion, recession, and recovery, influence consumer demand, investment, and profitability.

Explain the nature of global trade (EC:016) (SP)

Global trade involves importing and exporting goods and services, fostering economic growth and international relations.

Discuss the impact of globalization on business (EC:109) (SP)

Globalization expands markets, increases competition, and drives innovation, requiring businesses to adapt to diverse economies.

Describe the determinants of exchange rates and their effects on the domestic economy (EC:100) (SP)

Exchange rates fluctuate based on inflation, interest rates, and economic stability, affecting trade and business profitability.