Economic and Development Terminology Explained
Economic and Development Terminology
Public Services – Services mandated by state law and directly consumed by citizens, not generating profit.
Subsidized Services or Subsistence – Services mandated by state law and indirectly consumed by the public, not generating profit.
Subsistence Economy – Economic activities beyond state control (black market).
Pre-industrial Capitalism – The bourgeoisie, with wealth based on capital accumulation.
Laissez-faire Capitalism – Adam Smith’s ideology advocating minimal
Read MoreUnderstanding Pricing Strategies: A Comprehensive Analysis
Understanding Pricing Strategies
Definition of Price:
- Monetary: Quantity of money to pay for a good or service.
- Economic: Utility of a good to meet exchange needs.
- Value: Function of a product or service’s capacity for exchange.
- Product: Reflection of costs of procurement or production of a good or service.
Value and Price Within an Enterprise:
Sales, profit, ROI, and other variables in the marketing mix.
Factors Affecting Price:
Consumers, governments, competitors, current and future manufacturers, wholesalers,
Read MoreBrand Essentials: Packaging, Pricing, Promotion & Distribution
Brand Essentials: A Guide to Success
The requirements of a good brand include:
- A short and easy name to pronounce and remember.
- A sonorous and appealing name that identifies the product or service across different languages.
Packaging and Labeling
Effective packaging and labeling should be:
- Practical
- Recyclable
- Easy to transport and store
- Protective of the product
- Clearly labeled with essential information (ingredients, expiry date, batch number, place of origin, nutritional information, name, customer service
Economic Cycles, Growth, Unemployment, and Poverty
Economic Cycles
Cycle: Successive phases of boom and bust are apparent in economic activity. These phases determine variations in production, income, employment, and prices in an economy.
Phases of the Economic Cycle
- Expansion: An ascending phase characterized by growth in GDP and employment levels, income, and consumption. As demand increases, investments rise, providing more employment.
- Peak (Auge): The highest capacity utilization is achieved, with high levels of production, employment, and income.
Mastering the Marketing Mix: Product Strategies
Understanding the Marketing Mix: The Product
The marketing mix focuses on four key variables of the marketing function: product, price, communication or distribution, and promotion. The ultimate goal is to reach consumers and sell the product. We need an appropriate mix of the four variables to ensure that goods and services to be sold will meet the needs and desires of buyers and arrive at the time of need.
A. The Product
A1) Classification of Products:
- According to the recipient:
- Consumer Products
- Industrial
GDP, Fiscal & Monetary Policy: True or False Statements
GDP and Economic Policy: True or False
Periods of negative GDP growth are called recessions. True
The production of an apple contributes more to GDP than the production of a gold ring because food is necessary for life itself.
If the lumberyard sells $1,000 of lumber to a carpenter and the carpenter uses the lumber to build a garage that he sells for $5,000, the contribution to GDP is $6,000. False. The garage is the final good, valued at $5,000.
If nominal GDP in 2018 exceeds nominal GDP in 2017, real
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