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WGU C201 | Business Acumen | Chapter 3 Questions and Answers Already Passed

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WGU C201 | Business Acumen | Chapter 3 Questions and Answers Already Passed Economics ✔✔A social science that analyzes the choices people and governments make in allocating scarce resources. ... Microeconomics ✔✔Study of small economics units, such as an individual consumers, families, and businesses. Demand ✔✔The willingness and ability of buyers to purchase goods and services at different prices. Supply ✔✔The willingness and ability of sellers to provide goods and services for sale at different prices. Factors driving demand ✔✔A demand curve is a graph of the amount of a product buyers will purchase at different prices under a given set of conditions. Generally, as price go up, demand goes down and vice versa. However, the entire curve can shift to the right or left depending on changed conditions. These changes reflect factors such as customer preferences, number of buyers, buyer's incomes, prices of substitute goods, prices of complementary goods, and how optimistic or pessimistic future expectations become. Factors driving supply ✔✔A supply curve graphically shows the relationship between different prices and the quantities sellers will offer for sale, regardless of demand. Generally, as prices rise, the quantity sellers are willing to produce increases, and vice versa. The entire curve can also shift right or left depending on such factors as costs or availability of inputs (factors of production), costs of technologies, taxes, and the number of suppliers. How demand and supply interact ✔✔The equilibrium price identifies the prevailing market price and is found at the intersection of the supply and demand curves. Capitalism and competition ✔✔Capitalism (also called market economy or the private enterprise system) depends on competition. In this kind of economic system, different industries exhibit different competitive market structures. The four market structures are pure competition, monopolistic competition, oligopoly, and monopoly. Planned economies: communism and socialism ✔✔In a planned economy, the government's control determines business ownership, profits, and resource allocation to accomplish government goals rather than goals of individuals. Under communism, all property is shared equally by the people of a community under the direction of a strong central government. Under socialism, government owns and operates the major industries. Mixed market economies ✔✔In practice, most countries implement mixed market economies: economic systems that display characteristics of both planned and market economies in varying degrees. Flattening the business cycle ✔✔A nation's economy tends to flow through various stages of a business cycle: prosperity, recession, depression, and recovery. While the business cycle is normal, many economists believe that society is capable of preventing future depressions [Show More]

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