Economic assumptions Flashcards
What are variables?
Something that affects a situation in a way that means you cannot be sure what will happen
What are assumptions?
Things that you think are true although you have no definite proof
Define irrational
Not based on clear thought or reason
Define rational
based on clear thought or reason
What does it mean to ‘maximize’?
To increase something such as profit, satisfaction, or income as much as possible
What’s revenue?
Money that a business receives over a period of time, especially from selling goods or services
What are enterprises?
Companies, organizations or businesses
What’s a commission?
Amount of money paid to someone according to the value of goods, shares or bonds they have sold
What does it mean to ‘delegate’?
To give part of your power or work to someone else, usually someone in a lower position than you
Who is a ‘humanitarian’?
A person who is concerned with improving bad living conditions and preventing unfair treatment of people
Who is a retailer?
A business that sells goods to members of the public, rather than to shops
Define ‘administration’
Activities involved with managing and organizing the work of a company or organization
What do economists assume about consumers’ behavior?
Economists assume that consumers aim to maximize their benefit or satisfaction
What influences consumers’ ability to maximize their benefits?
Factors such as difficulty in calculating benefits, buying habits, brand loyalty, and social influences
Why may some producers not always maximize their profit?
Reasons include influence from colleagues, focus on customer care, and the rise of social enterprises.
