DECA Economics PI's

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

• Economic Goods: Tangible items that can be touched and stored, such as cars, food, and electronics. They are scarce and have a price.

• Services: Intangible offerings that cannot be touched or stored, like healthcare, education, or entertainment. They fulfill customer needs but don’t leave a physical product behind.

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

Economic resources are inputs used to produce goods and services. They include:

• Natural Resources: Raw materials like water, minerals, and land.

• Labor: Human effort, skills, and time used in production.

• Capital: Machinery, tools, and infrastructure needed for production.

• Entrepreneurship: The creativity and innovation needed to combine resources effectively.

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

• Economics: The study of how societies allocate scarce resources to meet the needs and wants of people.

• Economic Activities: Actions involved in producing, distributing, and consuming goods and services, such as manufacturing, selling, and purchasing.

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

Economic utilities are the value businesses add to products or services. The main types are:

• Form Utility: Creating products in desired shapes or styles (e.g., turning raw materials into finished goods).

• Time Utility: Making products available when customers need them (e.g., offering products seasonally or through fast shipping).

• Place Utility: Making products available at convenient locations (e.g., online shopping, retail stores).

• Possession Utility: Allowing customers to obtain or use products (e.g., leasing, financing).

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

• Supply: The amount of a product or service available to consumers.

• Demand: The amount of a product or service consumers are willing to buy at different prices.

• The interaction between supply and demand determines prices. When demand exceeds supply, prices rise; when supply exceeds demand, prices fall.

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

• Prices help allocate resources by signaling demand and supply.

• Price Function: Prices help businesses determine how much to produce, and guide consumers in making purchasing decisions.

• Prices also balance supply with consumer demand and can stimulate or reduce production.

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

• Businesses provide essential goods and services that satisfy consumer needs.

• They create jobs, contribute to economic growth, and support community development.

• Businesses also contribute to technological innovation, social progress, and environmental sustainability.

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

• Production: Creating goods and services.

• Marketing: Promoting and selling products.

• Finance: Managing money and financial records.

• Management: Overseeing operations and employees.

• Human Resources: Managing hiring, training, and employee relations.

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

Business models define how a company creates, delivers, and captures value. Types include:

• Product-based: Companies sell tangible goods (e.g., retail stores).

• Service-based: Companies provide intangible services (e.g., consulting).

• Subscription-based: Companies charge recurring fees for access (e.g., Netflix).

• Freemium: Basic services are offered for free, with paid upgrades (e.g., apps, games).

• Franchise: A business licenses its brand and operations to others (e.g., McDonald's).

• E-commerce: Businesses operate entirely online (e.g., Amazon).

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

Organizational design refers to how a company arranges its employees, roles, and workflows to meet its goals. Types include:

• Functional Structure: Employees are grouped by specialized roles (e.g., marketing, finance).

• Divisional Structure: Employees are grouped by product lines, regions, or markets.

• Matrix Structure: Combines functional and divisional structures for flexibility.

• Flat Structure: Few hierarchical levels, encouraging collaboration.

• Hierarchical Structure: Clear levels of authority and decision-making.

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

The global environment includes factors like international trade, political conditions, and cultural differences that impact business operations across countries.

• Opportunities: New markets, resources, and international partnerships.

• Challenges: Language barriers, differing regulations, and international competition.

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

12. Business environments are affected by:

• Economic Factors: Market conditions, inflation, and interest rates.

• Political Factors: Laws, regulations, and government stability.

• Technological Factors: Advancements that can create new opportunities or disrupt existing businesses.

• Social Factors: Consumer preferences, cultural trends, and demographics.

• Environmental Factors: Sustainability, resource availability, and climate change.

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

• Business ethics involves the moral principles that guide business decisions and behavior. This includes honesty, fairness, transparency, and responsibility toward stakeholders such as customers, employees, and the community.

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

Organizations adapt by:

• Embracing technology and innovation.

• Focusing on customer needs and feedback.

• Adjusting to market trends, such as eco-friendly products or digital services.

• Enhancing efficiency and staying competitive in a dynamic environment.

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

Economic systems determine how resources are allocated and include:

• Traditional Economy: Based on customs and traditions.

• Command Economy: Government controls all resources and production.

• Market Economy: Decisions are driven by consumers and businesses.

• Mixed Economy: Combines elements of both market and command economies.

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

Small businesses and entrepreneurs drive innovation, create jobs, and contribute to economic dynamism by providing diverse goods and services in the market.

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

Private enterprise refers to businesses owned and operated by individuals or groups, free from government control. It encourages innovation, competition, and the efficient use of resources.

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

Factors include:

• Revenue: Sales volume and pricing.

• Costs: Production, labor, and operational expenses.

• Competition: Influence of rivals' pricing and offerings.

• Market Demand: Customer interest and purchasing power.

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

• Market Conditions: Economic downturns or changes in consumer behavior.

• Competition: Rival businesses affecting market share.

• Regulatory Changes: New laws or taxes.

• Operational Risks: Supply chain disruptions, production issues.

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

Competition is when businesses vie for the same customers, influencing pricing, product development, and market share.

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

• Government influences business through regulations, taxes, and policies that set standards and rules for operations, often balancing business growth with public interests.

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

Taxes are compulsory financial charges imposed by governments on businesses and individuals to fund public services such as education, healthcare, and infrastructure.

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

Productivity measures output relative to input. Higher productivity means producing more with the same or fewer resources, improving efficiency and profitability

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

• Specialization and dividing tasks among workers improve efficiency, reduce errors, and increase output by focusing on individual strengths and expertise.

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

Organized labor involves unions that represent workers in negotiations for better wages, working conditions, and benefits, affecting business operations and costs.

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

Adding more input (e.g., labor, resources) beyond a certain point results in less productive output, increasing costs relative to gains.

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

Consumer spending reflects economic health. High spending indicates confidence, while low spending signals potential economic decline.

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

Inflation increases costs for businesses, reduces purchasing power, and impacts pricing strategies, potentially lowering profits.

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

GDP measures a country's total output of goods and services. High GDP indicates economic growth; low GDP signals a weak economy.

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

High unemployment reduces consumer spending and demand. Low unemployment boosts economic activity but may increase labor costs.

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

Higher interest rates increase borrowing costs, slowing business growth. Lower rates encourage borrowing and investment.

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

Business cycles (expansion, peak, contraction, and trough) influence hiring, investment, and sales. Businesses adjust strategies to align with these cycles.

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

Global trade involves buying and selling goods and services across borders, enabling access to resources, markets, and competitive pricing.

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

Globalization connects markets, increases competition, and expands business opportunities but adds complexity in cultural, legal, and operational aspects.

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

Exchange rates are influenced by supply/demand, interest rates, and economic stability. Strong currency reduces export competitiveness, while weak currency boosts it.

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

Understanding cultural norms, language, and values ensures effective communication, builds trust, and avoids misunderstandings in global business.

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

Social values, traditions, and consumer behavior influence market demand, branding, and communication strategies in global trade.

Describe the impact of electronic communication tools on global business activities (EC:111) (SP)

Tools like email, video conferencing, and webcasts improve communication, reduce costs, and enable faster decision-making across borders.

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

Trade alliances (e.g., EU, NAFTA) reduce tariffs, simplify regulations, and expand market access, fostering international trade.

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

Political stability, trade policies, and government regulations affect market access, supply chains, and investment opportunities in world trade.

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

Geographic factors like location, climate, and infrastructure influence trade routes, shipping costs, and market accessibility.

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

Historical trade relationships, colonial ties, and conflicts shape trade networks, agreements, and market preferences.

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

Developed economies have advanced infrastructure and purchasing power, while developing economies offer growth opportunities and cost advantages.

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

Bribery undermines fair competition, damages reputations, and violates ethical and legal standards, affecting global business operations.