Economic Performance Indicators

Potential Performance Indicators for MMTD Event - We will get 7/44 Performance Indicators in Our Roleplay

Distinguish between economic goods and services

• Goods are tangible items you can touch (like clothes or phones).

• Services are actions or activities done for you (like haircuts or banking).

Explain the concept of economic resources

• Economic resources are the inputs used to produce goods and services.

• There are three main types:

  • Land (natural resources),

  • Labor (human effort),

  • Capital (tools, machines, money).

Describe the concepts of economics and economic activities

• Economics is the study of how people and businesses make choices with limited resources.

• Economic activities are actions related to making, buying, and selling goods and services.

Determine economic utilities created by business activities

• Utility means value or satisfaction a customer gets from a product.

• Businesses create five types of utility:

  1. Form – making raw materials into finished goods

  2. Place – having products where customers want them

  3. Time – having products when customers need them

  4. Possession – making it easy to buy (like with credit cards)

  5. Information – giving product details to help customers decide

Explain the principles of supply and demand

• Supply = how much businesses will sell.

• Demand = how much consumers want.

• When demand goes up, prices rise.

• When supply goes up, prices fall.

• Equilibrium is when supply and demand are equal.

Describe the functions of prices in markets

• Prices act as signals between buyers and sellers.

• They help balance supply and demand.

• High prices encourage more production; low prices encourage more buying.

• Prices also help allocate resources to where they’re most needed

Explain the role of business in society

• Businesses provide goods and services, create jobs, pay taxes, and support the economy’s growth.

• They also improve living standards and drive innovation.

Describe types of business activities

The main business activities are:

1. Production – making goods or services

2. Marketing – promoting and selling products

3. Finance – managing money

4. Management – planning and organizing operations

5. Human Resources – hiring and training employees

Describe types of business models

• Business models show how a company makes money.

• Common types:

  • Manufacturer – makes products

  • Retailer – sells to consumers

  • Franchise – licensed brand business

  • Subscription – customers pay regularly

  • Freemium – free basic service, pay for upgrades

  • E-commerce – sells online

Explain the organizational design of businesses

• Organizational design is how a company is structured to reach its goals.

• Types include:

  • Functional – grouped by job type (marketing, finance)

  • Divisional – grouped by product or region

  • Matrix – mix of both, often for big companies

• Good design helps communication and efficiency.

Discuss the global environment in which businesses operate

• Businesses now compete and trade worldwide.

• The global environment includes international trade, technology, culture, laws, and global competition.

• Companies must adapt to global trends and markets.

Describe factors that affect the business environment

• Main factors:

  • Economic (inflation, interest rates)

  • Social (consumer trends, demographics)

  • Technological (new innovations)

  • Political/legal (laws, taxes)

  • Competitive (other businesses)

• Together, these shape how businesses operate and succeed.

Explain the nature of business ethics

• Business ethics are moral principles that guide business behavior.

• Ethical businesses are honest, fair, and responsible with customers, employees, and society.

• Being ethical builds trust and good reputation.

Explain how organizations adapt to today's markets

• Businesses adapt by using technology, innovating, and listening to customer needs.

• They may change products, prices, or marketing to stay competitive.

• Staying flexible and creative keeps them successful in changing markets.

Explain the types of economic systems

• Economic systems decide how resources are used.

• Types:

  • Traditional – based on customs/tradition

  • Command – government controls production

  • Market – supply and demand guide business

  • Mixed – combination of government and market control

Identify the impact of small business/entrepreneurship on market economies

Small businesses create jobs, encourage innovation, and increase competition, helping the economy grow.

Explain the concept of private enterprise

Private enterprise means individuals own and control businesses and make decisions for profit, not the government.

Identify factors affecting a business's profit

Profit depends on:

• Revenue – money earned

• Costs – expenses to run the business

• Competition – affects pricing

• Efficiency – how well resources are used

Determine factors affecting business risk

Risk comes from:

• Economic changes (recession, inflation)

• Competition

• Technology

• Customer demand

• Legal issues

Explain the concept of competition

• Competition is when businesses fight for customers by offering better prices, quality, or services.

• It encourages innovation and keeps prices fair.

Determine the relationship between government and business

• Government regulates, supports, and taxes businesses.

• It sets rules (laws), provides infrastructure, and may give financial aid to help businesses grow.

Describe the nature of taxes

• Taxes are mandatory payments to the government.

• They fund public services like roads, schools, and defense, and affect business costs and prices.

Explain the concept of productivity

• Productivity = how much output a business produces using a given amount of resources.

• Higher productivity means more efficient use of time, labor, and materials.

Explain the concept of organized labor and business

• Organized labor refers to workers joining unions to negotiate wages, hours, and conditions.

• Businesses must balance worker demands with productivity and profits.

Explain the impact of the law of diminishing returns

• Adding more resources (like workers) eventually produces less extra output.

• Businesses must know when extra input isn’t worth the cost.

Discuss the measure of consumer spending as an economic indicator

• Consumer spending shows how much people buy goods and services.

• High spending = strong economy; low spending = weak economy.

Describe the economic impact of inflation on business

• Inflation = prices rise over time.

• It increases costs for businesses, may reduce profits, and affects consumer buying power.

Explain the concept of Gross Domestic Product

• GDP = total value of all goods and services a country produces in a year.

• It measures economic growth and overall health of the economy.

Discuss the impact of a nation's unemployment rates

• High unemployment = fewer people earning money, less consumer spending.

• Low unemployment = more income and higher demand for goods and services.

Explain the economic impact of interest-rate fluctuations

• High interest rates = borrowing money costs more → less spending/investment.

• Low interest rates = borrowing is cheaper → more spending/investment.

Determine the impact of business cycles on business activities

• Business cycles = periods of growth (expansion) and decline (recession).

• During expansion: businesses grow and hire more.

• During recession: businesses cut costs and slow production.

Explain the nature of global trade

• Global trade is the exchange of goods, services, and resources between countries.

• It allows access to more products, markets, and resources.

Discuss the impact of globalization on business

• Globalization connects markets worldwide.

• Businesses gain new customers, face more competition, and share technology.

Describe the determinants of exchange rates and their effects on the domestic economy

• Exchange rates are set by supply and demand for currency, inflation, interest rates, and trade balance.

• A strong domestic currency makes imports cheaper but exports more expensive.

Explain cultural considerations that impact global business relations

• Culture affects communication, business etiquette, negotiation, and decision-making.

• Understanding culture builds trust and avoids conflicts.

Discuss the impact of cultural and social environments on global trade

Social norms, language, religion, and values influence consumer behavior and business practices.

Describe the impact of electronic communication tools on global business activities

Tools like email, video calls, and webcasts make global communication faster, cheaper, and easier.

Explain the impact of major trade alliances on business activities

Trade alliances (like NAFTA or EU) reduce tariffs, increase trade, and create larger markets.

Describe the impact of the political environment on world trade

• Politics affect trade through laws, tariffs, sanctions, and stability.

• Stable governments encourage trade; unstable ones discourage it.

Explain the impact of geography on world trade

• Geography affects shipping costs, natural resources, and access to markets.

Describe the impact of a country's history on world trade

History shapes laws, culture, infrastructure, and trade relationships, influencing business today.

Explain the impact of a country's economic development on world trade

• Developed countries produce more, export more, and attract investment.

• Less developed countries may rely on imports and foreign aid.

Discuss the impact of bribery and foreign monetary payments on business

Bribery and unethical payments increase costs, risk legal trouble, and damage reputation.

Identify requirements for international business travel

Requirements include passport, visa, proof of citizenship, immunizations, and sponsorship letters.