PMK Economics

PIs

Distinguish between economic goods and services (EC:002)

Economic goods are physical items that are produced and consumed, such as food, clothing, and cars. They are tangible and can be stored and transported. Services, on the other hand, are intangible activities that are performed for a fee. Examples of services include accounting, consulting, and transportation. Services cannot be stored or transported, and they are consumed as they are produced.

Explain the concept of economic resources (EC:003)

Economic resources are the inputs used to produce goods and services. They can be divided into four categories: land, labor, capital, and entrepreneurship. Land includes natural resources such as minerals, forests, and water. Labor includes the physical and mental effort of people to produce goods and services. Capital includes money, tools, and machines used to produce goods and services. Entrepreneurship is the ability to organize and manage resources to create and market goods and services. All of these resources are necessary for economic growth and development.

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

Economics is the study of how people, businesses, and governments make decisions about the allocation of resources. Economic activities are the activities that people, businesses, and governments engage in to produce and distribute goods and services. These activities include production, consumption, exchange, distribution, and investment. Economic activities are driven by incentives, such as the desire to make a profit or to satisfy a need. The study of economics helps us understand how these incentives shape economic decisions and how they affect the overall economy.

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

Economic utilities created by business activities refer to the value that businesses create for their customers. This value can be in the form of goods and services, or it can be in the form of intangible benefits such as convenience, time savings, or improved quality of life. Business activities create economic utilities by providing customers with products and services that meet their needs and wants, and by creating jobs and economic opportunities for the community. Business activities also create economic utilities by generating tax revenue for the government, which can be used to fund public services and infrastructure.

Economics utility is the value or satisfaction that a consumer receives from a product or service. It's an abstract concept that's used to explain how and why consumers make decisions. 

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

Supply and demand are the two fundamental principles of economics. Supply is the amount of a good or service that is available for purchase, while demand is the amount of a good or service that people are willing to buy. When the supply of a good or service is greater than the demand, the price of the good or service will decrease. Conversely, when the demand for a good or service is greater than the supply, the price of the good or service will increase. The interaction between supply and demand determines the price of a good or service in a market economy.

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

Prices in markets are an important tool for allocating resources and determining the value of goods and services. Prices act as signals to buyers and sellers, providing information about the relative scarcity of goods and services. Prices also provide incentives for producers to produce more or less of a good or service, depending on the demand for it. Prices also help to ensure that resources are used efficiently and that goods and services are allocated to those who value them the most. Finally, prices help to create competition in the market, which can lead to lower prices and better quality products.

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

Businesses play an important role in society by providing goods and services that people need and want. Businesses also create jobs, which helps to stimulate the economy and provide people with income. Businesses also provide tax revenue for governments, which can be used to fund public services and infrastructure. Additionally, businesses can help to create a sense of community by providing a place for people to gather and interact. Finally, businesses can help to promote social responsibility and sustainability by investing in initiatives that benefit the environment and society.

Describe types of business activities (EC:071)

Business activities refer to the activities that a business engages in to generate revenue and profits. These activities can include producing goods or services, marketing, sales, customer service, accounting, and other administrative tasks. Business activities can be divided into two main categories: operational activities and strategic activities. Operational activities are those that are necessary for day-to-day operations, such as production, inventory management, and customer service. Strategic activities are those that are focused on long-term goals, such as marketing, research and development, and financial planning.

Describe types of business models (EC:138)

Business models are the structures that companies use to generate revenue and create value for their customers. There are several types of business models, including subscription-based, advertising-based, marketplace, and product-based models. Subscription-based models involve customers paying a recurring fee for access to a product or service. Advertising-based models involve companies providing free services or products in exchange for displaying ads. Marketplace models involve companies connecting buyers and sellers, taking a commission on each transaction. Product-based models involve companies selling physical or digital products directly to customers.

Subscription-based: Spotify, Audiobook,

Advertising-based: PR packages from companies like Nike, through social media

Marketplace: A third party, like Amazon, eBay, Etsy, that connects the consumer with a seller, and then takes a fee from that

Product-based: Apple, clothing brands

Explain the organizational design of businesses (EC:103)

Organizational design is the process of creating a structure and culture within a business that will enable it to achieve its goals and objectives. It involves the creation of roles, responsibilities, and processes that will enable the business to operate efficiently and effectively. It also involves the development of systems and procedures that will ensure that the business is able to meet customer needs and remain competitive in the marketplace. Organizational design is an important part of any business, as it helps to ensure that the business is able to meet its goals and objectives.

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

The global environment in which businesses operate is a complex and ever-changing landscape. It is composed of a variety of factors, including economic, political, social, technological, and environmental elements. Businesses must be aware of the global environment in order to make informed decisions and remain competitive. Economic factors such as interest rates, inflation, and currency exchange rates can have a significant impact on a business’s operations. Political factors such as trade agreements, tariffs, and regulations can also affect a business’s ability to compete. Social factors such as consumer preferences, cultural norms, and public opinion can also influence a business’s success. Technological advances can create new opportunities for businesses, while environmental factors such as climate change and resource scarcity can create challenges. By understanding the global environment in which businesses operate, businesses can make better decisions and remain competitive.

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

The business environment is the set of conditions that affect how a business operates. These conditions can include economic, political, social, technological, legal, and environmental factors. Economic factors include interest rates, inflation, and exchange rates. Political factors include government policies, regulations, and taxes. Social factors include consumer trends, population growth, and cultural values. Technological factors include advances in technology, the availability of new products, and the speed of communication. Legal factors include laws and regulations that affect how businesses operate. Environmental factors include climate change, natural disasters, and resource availability. All of these factors can have a significant impact on how a business operates and its success.

Explain the nature of business ethics (EC:106)

Business ethics is a set of moral principles that guide the decisions and actions of businesses and their employees. It is based on the idea that businesses should act in a way that is fair, honest, and responsible. Business ethics covers topics such as corporate social responsibility, workplace safety, environmental protection, and customer privacy. It also includes principles such as integrity, respect, and trustworthiness. Business ethics is important because it helps to ensure that businesses are operating in a way that is beneficial to society and the environment.

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

Organizations today must be agile and adaptive in order to stay competitive in today's markets. This means that they must be able to quickly respond to changes in the market, customer needs, and technology. To do this, organizations must have a clear understanding of their target market, customer needs, and the competitive landscape. They must also have the ability to quickly develop and implement strategies to capitalize on opportunities and mitigate risks. Additionally, organizations must have the resources and infrastructure to support their strategies and ensure that they are able to execute them effectively. Finally, organizations must be able to measure and analyze their performance in order to continuously improve and stay ahead of the competition.

S - strengths

W - weaknesses

O - opportunities

T - threats

Explain the types of economic systems (EC:007)

An economic system is a set of rules, institutions, and processes that determine how resources are allocated, how goods and services are produced and distributed, and how economic outcomes are measured. There are three main types of economic systems: market economies, command economies, and mixed economies. Market economies are based on the principles of supply and demand, where prices are determined by the interaction of buyers and sellers in the marketplace. In a market economy, individuals and businesses are free to make their own economic decisions. Command economies are centrally planned by a government or other authority. In a command economy, the government makes all economic decisions, including what to produce, how much to produce, and how to distribute goods and services. Mixed economies combine elements of both market and command economies. In a mixed economy, the government plays a role in the economy, but individuals and businesses also have some economic freedom.

Explain the concept of private enterprise (EC:009)

Private enterprise is a type of business organization that is owned and operated by private individuals or groups, rather than by the government. Private enterprise is characterized by the freedom of the owners to make decisions about how the business is run, including what products or services to offer, how to price them, and how to market them. Private enterprise is the cornerstone of a free market economy, as it allows for competition and innovation.

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

Profit is the difference between a business's total revenue and total expenses. Factors that can affect a business's profit include the cost of goods and services, the price of goods and services, the cost of labor, the cost of materials, the cost of marketing and advertising, the cost of overhead, the cost of taxes, the cost of debt, the cost of competition, and the cost of technology. Additionally, external factors such as the economy, consumer demand, and government regulations can also affect a business's profit.

Determine factors affecting business risk (EC:011)

Business risk is the potential for a business to experience losses due to external factors such as economic conditions, competition, and changes in the market. To determine factors affecting business risk, it is important to consider the external environment, the industry, and the company itself. External factors such as economic conditions, changes in consumer preferences, and technological advancements can all affect the level of risk a business faces. Industry factors such as the competitive landscape, the availability of resources, and the regulatory environment can also affect the level of risk a business faces. Finally, internal factors such as the company's financial position, management capabilities, and operational processes can also affect the level of risk a business faces. By considering all of these factors, businesses can better understand the risks they face and develop strategies to mitigate them.

S - strategic risk

C - compliance risk

O - operational risk

R - reputational risk

N - natural risk

Explain the concept of competition (EC:012)

Competition is a concept that refers to the act of striving to outdo or outperform another individual or group. It is a process of competing against others to achieve a goal or gain an advantage. Competition can be found in many areas of life, such as sports, business, and academics. It is a driving force that encourages people to strive for excellence and to push themselves to their limits. Competition can also be beneficial in that it can motivate people to work harder and to strive for success.

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

The relationship between government and business is complex and multifaceted. Governments create laws and regulations that businesses must adhere to, while businesses provide goods and services to the public and create jobs. Governments also provide incentives to businesses to encourage economic growth and development. Businesses, in turn, pay taxes to the government, which helps fund public services and infrastructure. Ultimately, the relationship between government and business is mutually beneficial, as both entities rely on each other to ensure the health and prosperity of the economy.

Describe the nature of taxes (EC:072)

Taxes are a form of payment that individuals and businesses are required to pay to their government. Taxes are used to fund public services, such as education, healthcare, infrastructure, and social security. Taxes are typically based on income, sales, and property, and are collected by the government in order to finance its operations. Taxes are an important part of a country's economy, as they provide the government with the funds necessary to provide essential services to its citizens.

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

Small businesses and entrepreneurs play an important role in market economies. They create jobs, stimulate economic growth, and provide goods and services that are not available from larger businesses. Small businesses and entrepreneurs also provide competition to larger businesses, which helps to keep prices low and quality high. Additionally, small businesses and entrepreneurs often provide innovative products and services that can help to drive economic growth. Finally, small businesses and entrepreneurs are often the first to take advantage of new technologies and markets, which can help to create new opportunities for economic growth.

Explain the concept of productivity (EC:013)

Productivity is the measure of how efficiently resources are used to produce goods and services. It is a measure of output per unit of input, such as labor, capital, or materials. Productivity can be increased by improving the efficiency of processes, investing in technology, and training employees. Increasing productivity can lead to higher profits and greater economic growth.

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

Specialization and division of labor are two important concepts in economics that refer to the process of breaking down a complex task into smaller, more manageable tasks. This allows for workers to focus on specific tasks, which can lead to increased productivity. By specializing in a certain task, workers can become more efficient and effective in their work. This can lead to increased output and improved quality of work. Additionally, specialization and division of labor can lead to economies of scale, which is when the cost of producing a good or service decreases as the number of units produced increases. This can lead to increased profits for businesses and improved economic growth. In conclusion, specialization and division of labor can have a positive impact on productivity, leading to increased output and improved quality of work.

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

Organized labor and business is a concept that refers to the relationship between labor unions and employers. Labor unions are organizations of workers that negotiate with employers to ensure fair wages, working conditions, and other benefits for their members. Businesses, on the other hand, are organizations that provide goods and services to consumers. The relationship between organized labor and business is important because it helps to ensure that workers are treated fairly and that businesses are able to remain competitive in the marketplace.

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

The law of diminishing returns states that as more of a resource is used to produce a product, the marginal output of that product will eventually decrease. This means that the benefit of adding more of a resource will eventually decrease, and the cost of adding more of the resource will eventually outweigh the benefit. This law has a significant impact on businesses, as it can help them to determine the optimal level of resources to use in order to maximize their profits. It can also help them to identify when it is no longer cost-effective to continue to add more of a resource.

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

Consumer spending is an important economic indicator because it reflects the amount of money that consumers are willing to spend on goods and services. This is important because consumer spending is a major driver of economic growth. When consumer spending increases, businesses are able to hire more workers, produce more goods, and increase their profits. This in turn leads to increased economic activity, which can lead to higher wages and more jobs. On the other hand, when consumer spending decreases, businesses may have to lay off workers and reduce production, leading to a decrease in economic activity. Therefore, measuring consumer spending is an important way to gauge the health of the economy.

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

Inflation has a significant economic impact on businesses. When the cost of goods and services rises, businesses must increase their prices to keep up with the rising costs. This can lead to decreased demand for their products and services, as customers may not be able to afford the higher prices. Additionally, businesses may have to pay more for their inputs, such as raw materials, labor, and energy, which can lead to higher production costs. This can reduce their profits and make it difficult for them to remain competitive. Inflation can also lead to higher interest rates, which can make it more expensive for businesses to borrow money. All of these factors can have a negative impact on businesses, making it more difficult for them to succeed.

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

Gross Domestic Product (GDP) is a measure of the total economic output of a country. It is calculated by adding up the value of all goods and services produced within a country in a given period of time. GDP is used to measure the size of an economy and to compare the economic performance of different countries. It is also used to measure the overall economic health of a country.

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

Unemployment rates are an important indicator of a nation's economic health. High unemployment rates can have a negative impact on a nation's economy, leading to decreased consumer spending, increased poverty, and decreased tax revenues. This can lead to a decrease in economic growth, as businesses are unable to hire new employees or expand their operations. High unemployment rates can also lead to increased social unrest, as people become frustrated with their inability to find work. Additionally, high unemployment rates can lead to increased crime rates, as people become desperate for money. Ultimately, a nation's unemployment rate is an important indicator of its economic health, and can have far-reaching consequences.

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

Interest-rate fluctuations can have a significant impact on the economy. When interest rates rise, it can lead to an increase in borrowing costs for businesses, making it more expensive for them to finance investments and operations. This can lead to a decrease in economic activity, as businesses may be less likely to invest in new projects or hire new employees. On the other hand, when interest rates fall, it can lead to an increase in economic activity, as businesses may be more likely to borrow money and invest in new projects. This can lead to an increase in economic growth and job creation. Ultimately, interest-rate fluctuations can have a significant impact on the overall health of the economy.

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

Business cycles refer to the fluctuations in economic activity that occur over time. These cycles can have a significant impact on business activities, as they can affect the demand for goods and services, the availability of capital, and the cost of labor. During periods of economic expansion, businesses may experience increased demand for their products and services, allowing them to increase production and hire more employees. Conversely, during periods of economic contraction, businesses may experience decreased demand, leading to decreased production and layoffs. Business cycles can also affect the availability of capital, as lenders may be more or less willing to provide financing during different phases of the cycle. Finally, the cost of labor can also be affected by business cycles, as wages may rise or fall depending on the current economic conditions.

Explain the nature of global trade (EC:016)

Global trade is the exchange of goods and services between countries. It is a form of economic activity that involves the buying and selling of goods and services across international borders. Global trade has been an important factor in the growth of the world economy, as it allows countries to specialize in the production of certain goods and services and to benefit from the comparative advantage of other countries. Global trade also helps to increase competition, which can lead to lower prices and higher quality products for consumers.

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

Globalization has had a significant impact on business. It has opened up new markets, increased competition, and allowed businesses to access resources from around the world. Globalization has also enabled businesses to take advantage of new technologies, such as the internet, to reach customers in different countries. Additionally, businesses have been able to benefit from lower production costs due to the increased competition and access to cheaper labor in other countries. Finally, globalization has allowed businesses to diversify their products and services, which has allowed them to reach a wider customer base. All of these factors have had a positive impact on businesses, allowing them to become more profitable and successful.

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

Exchange rates are the rate at which one currency can be exchanged for another. The determinants of exchange rates are the factors that influence the value of a currency in relation to another currency. These determinants include economic factors such as inflation, interest rates, government policies, and trade balances. They also include political factors such as geopolitical tensions and international relations. The effects of exchange rates on the domestic economy are significant. A strong exchange rate can lead to increased exports, as foreign buyers are able to purchase more goods and services with their currency. This can lead to increased economic growth and job creation. On the other hand, a weak exchange rate can lead to decreased exports, as foreign buyers are unable to purchase as much with their currency. This can lead to decreased economic growth and job losses. Exchange rates also affect the cost of imported goods and services, as a strong exchange rate makes imports more expensive and a weak exchange rate makes imports cheaper. This can have a significant impact on the domestic economy, as it can lead to increased prices for consumers and decreased profits for businesses.

Explain cultural considerations that impact global business relations (EC:110)

Cultural considerations are important to consider when engaging in global business relations. Different cultures have different values, beliefs, and norms that can impact how business is conducted. For example, in some cultures, it is important to build relationships and trust before engaging in business, while in other cultures, business is conducted more quickly and efficiently. Additionally, different cultures have different expectations for communication, such as the use of formal language or the use of certain gestures. It is important to be aware of these cultural differences and to be respectful of them when engaging in global business relations. Understanding cultural considerations can help to ensure successful business relations and can help to avoid misunderstandings.

Discuss the impact of cultural and social environments on global trade (EC:045)

Global trade is heavily influenced by the cultural and social environments of the countries involved. Cultural norms and values can shape the way goods and services are exchanged, as well as the types of products that are traded. Social environments can also affect global trade, as different countries may have different levels of access to resources, technology, and capital. This can lead to disparities in the ability of countries to participate in global trade, as well as the types of goods and services that are traded. Additionally, cultural and social environments can influence the way in which countries interact with each other, which can have a significant impact on global trade.

Describe the impact of electronic communication tools (e.g., Internet, video- and computer-conferencing, webcasts, email) on global business activities (EC:111)

The impact of electronic communication tools on global business activities has been immense. These tools have enabled businesses to communicate with customers, partners, and employees around the world in real-time. For example, video- and computer-conferencing allow businesses to hold virtual meetings with people from different countries, while webcasts enable businesses to broadcast their messages to a global audience. Additionally, email has become an essential tool for businesses to quickly and easily communicate with customers, partners, and employees. By utilizing these tools, businesses are able to increase their efficiency and productivity, as well as reduce costs associated with travel and communication. Furthermore, these tools have enabled businesses to expand their reach and access new markets, allowing them to increase their profits and grow their businesses. In short, electronic communication tools have revolutionized global business activities, making them more efficient, cost-effective, and profitable.

Explain the impact of major trade alliances on business activities (EC:112)

Major trade alliances have a significant impact on business activities. These alliances are agreements between two or more countries to reduce or eliminate trade barriers, such as tariffs and quotas, and to promote free trade. By reducing or eliminating trade barriers, these alliances make it easier for businesses to access new markets and increase their sales. Additionally, these alliances can help businesses reduce costs by allowing them to source materials and products from different countries at lower prices. Furthermore, these alliances can help businesses increase their efficiency by allowing them to access new technologies and resources. Finally, these alliances can help businesses increase their competitiveness by allowing them to access new markets and customers. All of these factors can have a positive impact on business activities.

United States-Mexico-Canada Agreement (USMCA)

North American Free Trade Agreement (NAFTA)

Describe the impact of the political environment on world trade (EC:113)

The political environment has a significant impact on world trade. Governments can create policies that either encourage or discourage international trade. For example, governments can impose tariffs or quotas on imported goods, which can make them more expensive and less attractive to consumers. Governments can also create trade agreements that reduce or eliminate tariffs and other trade barriers, making it easier for countries to trade with each other. Additionally, governments can create regulations that affect the flow of goods and services across borders, such as environmental regulations or labor standards. All of these factors can have a major impact on the amount of trade that takes place between countries.

Explain the impact of geography on world trade (EC:114)

Geography has a significant impact on world trade. Geography affects the cost of transportation, which is a major factor in the cost of goods and services. For example, goods that are produced in one country and shipped to another country will cost more than goods that are produced and sold in the same country. Geography also affects the availability of resources, which can influence the cost of goods and services. For example, countries with access to abundant natural resources may be able to produce goods at a lower cost than countries without access to those resources. Additionally, geography can affect the ability of countries to access markets, as some countries may be more difficult to access due to their location. Finally, geography can affect the ability of countries to form trade agreements, as countries may be more likely to form agreements with countries that are geographically close.

Describe the impact of a country's history on world trade (EC:115)

A country's history can have a significant impact on world trade. Historical events such as wars, revolutions, and other conflicts can disrupt trade routes, leading to a decrease in the amount of goods and services exchanged between countries. Additionally, a country's political and economic policies can also affect world trade. For example, if a country imposes tariffs or embargoes on certain goods, it can limit the amount of trade between countries. Furthermore, a country's cultural values and beliefs can also influence world trade. For example, if a country has a strong preference for certain goods or services, it can create a demand for those goods and services in other countries. Finally, a country's history can also shape its relationships with other countries, which can have a direct impact on world trade. For example, if two countries have a long history of conflict, it can lead to a decrease in trade between them.

Explain the impact of a country's economic development on world trade (EC:116)

The economic development of a country has a significant impact on world trade. As a country's economy develops, it is able to produce more goods and services, which can then be exported to other countries. This increases the demand for the country's exports, which in turn leads to increased trade between the country and other countries. Additionally, as a country's economy develops, it is able to attract foreign investment, which can further stimulate economic growth and world trade. Finally, a country's economic development can also lead to increased competition in the global market, which can lead to lower prices and improved quality of goods and services. All of these factors contribute to increased world trade and economic growth.

Discuss the impact of bribery and foreign monetary payments on business (EC:140)

Bribery and foreign monetary payments can have a significant impact on businesses. Bribery can lead to a company receiving preferential treatment, such as access to resources or contracts, which can give them an unfair advantage over their competitors. Foreign monetary payments can also be used to influence decision-making, as companies may be willing to pay large sums of money to secure a contract or gain access to resources. This can lead to a lack of transparency and accountability, as well as a decrease in competition. Additionally, bribery and foreign monetary payments can lead to a decrease in public trust in businesses, as it can be seen as unethical and corrupt. Ultimately, bribery and foreign monetary payments can have a negative impact on businesses, as it can lead to a lack of transparency and accountability, a decrease in competition, and a decrease in public trust.

Identify requirements for international business travel (e.g., passport, visa, proof of citizenship, immunizations, and sponsorship letters) (EC:141)

International business travel requires a few specific documents in order to be successful. A valid passport is required for all international travel, and a visa may be required depending on the country of destination. Proof of citizenship is also necessary, such as a birth certificate or naturalization certificate. Depending on the country of destination, immunizations may be required. Finally, sponsorship letters may be required from the company or organization sponsoring the business travel.