WGU C201 Business Acumen Chapters 3 & 7: Economics
WGU C201 Business Acumen Chapters 3 & 7: Economics
WGU C201 Business Acumen Chapters 3 & 7: Economics
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WGU C201 Business Acumen Chapters 3
& 7: Economics and Organizational
Structure Exam – 60 Q’s and A’s
Factors Influencing Demand - -Demand is driven by price, consumer
preferences, the economy, the number of buyers in a market, customer
incomes, price of substitutes and complimentary items.
-Factors of Production - -Natural resources, capital, human resources and
entrepreneurship.
-What is the key factor influencing demand? - -Price
-Demand Curve - -A graph of the amount of a product buyers will purchase
at different prices.
-Supply Curve - -Shows the relationship between the price of a good or
service and the quantity supplied for a given period of time.
Opposite of demand curve. Slopes upwards.
-Equilibrium Price - -The prevailing market price at which you can buy an
item. Where supply and demand pricing meet on the curve.
-Explain a situation where a supplier would reduce prices. - -The cost of
inputs decrease.
The cost of technology decreases.
The cost of taxes decrease.
There are more suppliers.
-Microeconomics - -The study of economic behavior among individual
consumers, businesses, and families whose collective behavior in the
marketplace determines the quantity of goods and services demanded at
different prices.
Key terms: supply and demand.
-Macroeconomics - -The study of the broader economic picture and of how
an economic system maintains and allocates its resources.
-Monopoly - -Government controls who can enter the industry.
Market situation where one producer controls the supply of a good or
service, and where the entry of new producers is prevented or highly
restricted.
-Pure Competition - -It's easy to get into the industry and easy to get out.
, There is not a large differentiation between the products in the industry or
the consumers who purchase the products.
-Oligopoly - -Oligopoly is a market structure in which a small number of
firms has the large majority of market share.
There are few competitors.
The ease of entry into industry is somewhat difficult.
The similarity of services and goods of competitors is different.
-Socialism - -Government ownership of major industries like
communications.
Major industries are too important to be left in private hands.
Significant government planning.
Only the private sector of the economy generates profit.
Government influences career decisions. Incentives are limited.
Example- Canada. Healthcare is controlled by government, but citizens can
open stores.
-Capitalism - -Businesses are owned privately.
Companies and individuals can earn profits.
People have the right to choose a profession. There is more incentive to work
hard and innovate.
-Functional Unemployment - -Individual is temporarily unemployed and
looking for a job.
Example: new graduates.
-Seasonal Unemployment - -Individuals are unemployeed during slow
seasons. The only type of unemployment where the individual is not actively
seeking employment.
-Structural Unemployment - -Individuals are unemployed because there is
no demand for their skills.
They need retraining.
When an individual becomes unemployed as a result of their job becoming
obsolete for reasons such as technology.
Examples: assembly line workers, toll takers on a bridge transitioning to EZ
Pass.
-Cyclical Unemployment - -Individual becomes unemployeed due to an
economic slowdown.
Example: executives when companies downsize.
-How do we measure economic growth? - -Productivity - Ratio of outputs to
inputs.
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