COMMERCE 1E03 Study Guide - Final Guide: Mixed Economy, Canadian Business, Marketing Mix
15 Dec 2017
School
Department
Course
Professor
How is Economics related to Business
Economics is the study of how society chooses to employ resources (the five factors
of production) to produce products and distribute them for consumption among
various competing groups and individuals
Economic concepts are the basis for most Major Business Decisions
Both the global economy and the Canadian economy have an effect on Canadian
business
oincludes understanding the role of the federal and provincial governments in
Canada
Economics: 2 Branches
Macroeconomics looks at the operation of a nation’s economy as a whole
oe.g., how many jobs exist in the whole economy
Microeconomics looks at the behaviour of people and organizations in particular
markets
oe.g., how many people will be hired in a particular industry or in a particular
region of the country
Four "What's" of an Economic System
What is Produced?
What Amount is produced?
What is the method of output distribution?
What determines rate of economic growth?
Free-Market Competition
Pure / Perfect Competition
omany buyers and sellers for similar products
operfect information
ono buyer or seller is powerful enough to affect the price
odistribution is important
Monopolistic
olarge number of sellers for unique but substitutable products
opricing is important
oEx. Clothing, food, restaurants
Oligopoly
oFew large sellers / competitors for similar products
osellers have large control over price
opromotion is key to achieve perceived product differences as do not tend to
compete on price
oEx.
Monopoly
oonly one seller and price is based on demand
oproduct is unique but not substitutable
omarketing mix is unimportant
natural – resource-based due to a large investment
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Economics is the study of how society chooses to employ resources (the five factors of production) to produce products and distribute them for consumption among various competing groups and individuals. Economic concepts are the basis for most major business decisions. Both the global economy and the canadian economy have an effect on canadian business includes understanding the role of the federal and provincial governments in o. Macroeconomics looks at the operation of a nation"s economy as a whole o e. g. , how many jobs exist in the whole economy. Microeconomics looks at the behaviour of people and organizations in particular markets e. g. , how many people will be hired in a particular industry or in a particular o region of the country. Pure / perfect competition: many buyers and sellers for similar products, perfect information, no buyer or seller is powerful enough to affect the price, distribution is important.
