unit 1 resource management`

list and describe 5 types of values that influence deciiosn-making. Provide exam.

life- most important

cultural-religion/heritage

social- friends, coworkers

work- amount of payment /relations

demographic- why you live where you live

diff between need and want

cannot live without- food, water

can live without- jewerly

life-span vs life cycle

life-span- long-terms goals you want to reach dates on timeline

life-cycle- tick marks on timeline

short-term vs long-term

getting good grade on test

going to college

“standard of living”

job you choose to determine stability (need to maintain lifestyle you’re comfy with)

concept of opp. cost with ex.

value for next best alternative whenever you make a choice (impulse buy)

impulse buying and impact

buying whatever whenever; not wise, easy to blow money

rational decision making

choice made in a organized, logical manner

5 decision-making

specify- determine

search- gather info

sift- weigh options

select- choose

study- research

how much money for emergency fund. why

3-6 months. you can be sustained this long while finding another source of income

percent of paycheck to save

10%

operations and services taxes fund

libraries, community projects, public schools, airports. etc.

4 parts of free enterprise system

private ownership and control of productive resources

free economic choices

profit motive

competition

profit motive. role in business

wanting to sell and stimulate business (get as much money out of a product as possible)

drives sales, marketing strategies

3 strategies to increase profits

reduce cost

increase sold (target audience)

change price

how to determine company profit

price- cost

monopoly

company or place controls all the money/ dominates

buyers remorse

regret your purchase

impulsivity fades and realize product wasn’t worth it

law of scarcity and implciations

limited supply

no country has everything that its people need/want

3 major problems all economic societies face

what goods/services will be produced?

how will goods/services be produced?

who will consume the goods/services?

supply demand. how affect economy?

demand drives supply. pieces rise and quantity increases

equilibrium price and how determined

price which the quantity supplied is = to the quanitity demanded of the product

no recession/inflation —-the best

4 types of economies. who controls what produced,and how

traditonal

produce what ancestors made

how: by the people who grow/make things same as ancestors

who: for the people in village

command

what: gov. makes decisions

how: by gov.

who: who gov. chooses

market

what: business base on supply/demand

how: busi./people decide

who: consumers

mixed (command and marker)

what: businesses

how: business but gov regulates

who: consumers

bartering

trading without money

recession vs inflation

rec. too LITTLE money flowing— need to pump back in

infl. too MUCH money flowing—- need to reduce

fiscal

what happens during recession.

what happens during inflation

what is the govs. goal

taxation + gov spending

reduce taxes/ increase gov spending to get more money out and flowling

increase taxes and decrease gov. spending to reduce money circ.

stable economy using gov spending

monetary policy

what happens during recession.

what happens during inflation

what is the govs. goal

federal reserve + central bank / checks , supply

reduce reserve requirements / decrease discount rate

increase reserve requirements/ increase discount rate

healthy economy, stable prices/rates

discount rate

interest rate

lower amount to get money from loans/ higher harder to get

reserve requirements

control the amount banks can give out for loans. around infaltion’s /recessions they increase to limit and reduce to make them more obtainable or not

open market

what is / how operate

when would dbuy back securities

when sell securities

buying and selling of securities

inflation

recession

3 types of laws regulaten and influence gov deciison

anti-trust- prevent monopolies, price-fixing and otherrade restraints

public safety and wellbeing- equal opp. fair labor industrial safety product/labeling

consumer soverignity

dollar vote

consumers determine what products or services are successful

factors that change economy

politics, election yearsm businesses, war

GDP , what measures, purpose

gross domestic price

totally money across all goods produced in country

CPI, what measure, purpose

consumer price index

measure of average change in money for selected goods/services

7 CPI’s

food

housing

apparel and its care

transportation

medical care

entertainment

(fuel, utilizes, ect, things consumers buy regularly)