Economics & Business: Supply Chains, Costs, and Markets

What does scarcity mean

demand exceeds available resources

What is macroeconomics

it's for big companies, the national economy, big-picture stuff

What is microeconomics

specific business problems, like the supply-demand curve

You have a free Saturday afternoon. You can either work a 4-hour shift at your campus job earning $15 per hour, or you can go to a football game with your friends. If you choose to go to the game, what is your opportunity cost

The $60 in cash you gave up by not working

Made in the U.S. and sold to Canada

is an export

Made in Canada and sold to the U.S.

an import

What is a shortage

having less

What is a surplus

having more

What does it mean to be elastic

it is very sensitive to change, like when the price changes, demand will change

What is inelastic

a resource that you have to buy, like gas

What is a variable cost

an expense that changes in direct proportion to how much a business produces or how much an individual consumes

What does supply chain measure

the efficiency, speed, cost, and reliability of moving a product from raw materials to the end customer

A company purchases standardized items; what is the

many suppliers, fewer suppliers (relationship),

What does Forward integration mean

ownership towards distribution to customers

What is backward integration

ownership toward raw materials

What does logistics mean

getting something from point A to point B, MOVEMENT AND STORAGE OF GOODS

What does multimodal mean

uses multiple forms of transportation

A tariff is a tax on imports

True

The shipping freight that has the lowest shipping cost is always cheaper

False

A team produces 140- units in

A company has a hot dog stand that makes $ 3 per hot dog, but it costs $ 2 to make that hot dog; what is the profit? Revenue - cost = profit; profit is $1

What is purchasing power

is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. It is essentially the real buying power of your money after accounting for prices.

What are complementary products

goods or services that are usually consumed together because they add value to one another

What are the different cycles

Expansion: Economy grows, jobs increase.Peak: The highest point of growth.Contraction (Recession): Economy shrinks, jobs decrease.Trough: The lowest point before recovery begins.

What are the different stages of business? Launch

Starting the company and finding customers.Growth: Sales take off, and the business expands.Maturity: Sales level off and become steady and predictable. Decline or Renewal: The business either dies out or innovates to grow again.

What is the Consumer Price Index

an economic metric that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services

What is the difference between fixed vs. variable cost

A fixed cost remains exactly the same regardless of your production or usage levels