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OAE 025 Economics 0015 & OAE 025 Economics 0016 Exam 100% Verified
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OAE 025 Economics 0015 & OAE 025 Economics 0016 Exam 100% Verified...
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OAE 025 Economics 0015 & OAE 025 Economics 0016 Exam100% Verified
OAE 025: Economics 0015
Market Efficiency - ANSWER When a market is able to generate sufficient output to
satisfy consumer demand
Scarcity - ANSWER fundamental economic problem, the discrepancy between limited -
that is, scarce - resources and theoretically unlimited wants
Four major components of a marketing plan - ANSWER Product
Price
Place
Promotion
Four types of utility - ANSWER Form: Physical characteristics
Place: location and convenience
Time: Availability at a certain time
Ownership: Ownership passes on to the consumer
Opportunity Cost - ANSWER also called alternative cost, is the value, not a benefit, of
the choice in terms of the best alternative while making a decision.
Basic relationship between SCARCITY and CHOICE
Competition - ANSWER a state where various economic firms strive to achieve a portion
of a scarce good by varying the elements of the marketing mix: price, product,
, promotion and place.
Specialization - ANSWER nation or individual concentrates its productive efforts on
producing a limited variety of goods
Marginal Utility Cost - ANSWER the additional satisfaction a consumer gains from
consuming one more unit of a good or service.
Elasticity - ANSWER How the quantity of a product responds to the price demand.
Quick response V. Slow Response
Economic Incentives - ANSWER Provide motivation to pursue preferences.
Economics of Scale - ANSWER Saving costs gained by an increased level of production
Law of Diminishing Returns - ANSWER a point at which the level of profits gained is less
than the amount of money or energy invested.
Market Economy - ANSWER "free market economy"
Controlled by law of S+D and this determines the price of goods/services
Traditional Economy - ANSWER Economic activity is based on ritual habits and customs
Command Economy - ANSWER The government determines what to produce, how to
produce it, and who to produce it for
Comparative Advantage - ANSWER In international trade this is when a country can
produce a product more efficiently and cheaply than another country
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