Beruflich Dokumente
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4. Describe what producers have to understand about consumers in order to make their decisions.
Guide pace of economy, help maintain steady growth, keep prices stable, and provide public
goods & services (can be consumer & producer)
1. Write down the key terms that match the following definitions.
a. incentive : A cost or benefit that motivates a decision or action.
b. market research : Research into the size, location, and makeup of a product market.
c. peer pressure : The pressure exerted by a person or group that is intended to change
someone's choices or behavior.
d. trend : A general direction of the market, such as a higher demand or supply for a
particular product or service.
2. List some of the factors that influence consumers' decisions.
3. List some questions that producers ask as they make their decisions.
what do consumers want? What kinds of things will they pay a lot of money for? What kind of
ads do they respond to? How much resources cost? How far away are they? Availability?
Short term involves keeping track of and covering all fixed expenses
Long term is planning for the future, look at assets and income
Short terms helps fulfill needs and long term allows you to move forward to bigger goals
1. Write down the key terms that match the following definitions.
a. utility : The amount of personal satisfaction gained from the use or consumption of goods
and services.
b. opportunity cost : The benefits of the best alternative option that are given up by a particular
decision.
c. marginal analysis : A decision-making tool that weighs additional costs and benefits of
going for one more unit of something.
2. Describe how utility is used in cost-benefit analysis.
Monetary is money while nonmonetary is thing you don’t get instead and time
People with high risk aversion take more certain path even if benefits are small
Low risk do less certain with hopes they’ll get a bigger benefit
1. Write down the key terms that match the following definitions.
a. media : Forms of communicating with an audience.
b. mass media : The means of communicating with a large number of people.
c. news media : Media sources that provide objective information.
d. product placement : Paying to display a product in a movie or TV show.
e. advertising : The promotion of goods, services, companies, and ideas by an identified
sponsor.
f. consumer behavior : How consumers choose to buy goods and services.
g. branding : Making the public aware of a specific brand of a product and associating it with
quality and popularity.
2. List several different types of media.
Biggest method used to influence consumer behavior., Influence people to buy their stuff, find
people of their demographics
2. Branding
4. Free advertising
3. Describe the difference between how producers and consumers use cost-benefit analysis.
To remain in business
7. Describe the inputs into production and explain why they cost money.
Land, labor, and capital.Wages for workers, rent for land, money to buy materials.
8. Describe how opportunity costs are related to profits.
You have to think about your choices to decide what will maximize profit?
9. Explain the purpose of the production possibilities frontier.
Shows producers who to set up production in an efficient manner, helps maximize efficiency
10. Explain how market research helps producers maximize profits.
Many producers
Slightly different products clothing stores
Monopolistic Some price control
Large number of small businesses fast food
(most
common) video rental
3. When economists think about market structures, they include market structures like pure
monopoly and pure competition that are very rare in the real world. Why do economists spend
time thinking about conditions that almost never exist?
Can use it as a standard to analyze real market structures
1. Write down the key terms that match the following definitions.
a. ad rate : The amount of money charged for a particular amount of advertising space.
b. medium : Method of transmitting information.
c. circulation : The number of newspapers or magazines printed and distributed.
d. ratings system : A method of sampling viewers or listeners to estimate the audience size
for a particular show.
e. media conglomerates : Companies that own a large number of media sources in various
formats.
f. centralization of ownership : When a few large companies own most businesses within an
industry.
g. blogging : Web-logging; writing a journal or log on the Internet.
h. instant messaging : Transmitting text messages via the Internet.
i. chat room : A medium for direct online communication.
2. Explain why nearly every business gets involved with the media in some way.
A part of every consumer’s life, everyone consumes it, if they didn’t know one would know
about them
Sell directly to consumers by charging them to buy magazines, cable TV, etc
Selling advertisements
4. Describe what media companies provide and what advertisers are buying, and explain why
there's a difference.
Media provides content and advertisers buy the audience. Media wants to attract an audience so
they can sell the audience to advertisers.
Popularity
They need to get people to use their products so advertisers will want to advertise there and they
can charge more. They measure through medium, circulation, and ratings system.
Public corporation Anyone can buy and sell shares, make profit
1. identifies customers
2. identifies goods offered
3. describes business organization
4. describes how business functions
5. explains how the business generates revenues and profits
4. Fill out the table below by describing each of the business models listed.
Business Description
Model
Shopkeeper Business goes through suppliers or a wholesaler to buy products they sell for a
higher price
Bait and Offering basic product at a low cost and charging greater amounts for refills or
hook equipment related to the product
Subscription Customer pays for subscription and gets sent product, brings in a steady
revenue and predictable profits w renewing them
Cutting out Buying from manufacturer who sends them product directly
the
middleman
Online Customers go to internet and look at products for sale by a variety of people
auction
Bricks and Stores and online shopping
clicks