MODULE 3 Flashcards
Specialized branch of economics that concern with the intimate relationship between economics and social behavior which have an impact on how consumers behave in the economy and eventually shape the economy.
ethics, social norms, social philosophies
seeks to predict what kind of results to expect when the society has been changed
study of social economics
the social and economic factors that shape and determine dynamics a society will experience. These factors affect the behavior of a particular groups known as socioeconomic class.
socioeconomic factors
One of the most interesting behaviors of the members of socioeconomic class is the
behavior as consumers
the social science that studies how economic activity affects and is shaped by social processes.
socioeconomics or social economics
In general it analyzes how modern societies progress, stagnate, or regress because of their local or regional economy, or the global economy
socioeconomics
are characteristics that define the quality of life in a society.
socioeconomic factors
they influence behaviors, attitudes, trends, tastes and lifestyles of individual
socioeconomic factors
considered the driver of socioeconomic impact and this is the major predictor of business success. There are different socioeconomic factors that affect the business industry.
business
what are the socioeconomic factors that affect business industry
- demand and supply
- marginal and total utility
- money and banking
- economic growth and development
- income and employment
- general price level
- trade cycle
- inflation
- recession
- exchange rate
- interest rate
- government regulations
- fiscal policy
- tourism
- quality of life
These two are the principal factors that affect the operation of the business.
demand and supply
the will and ability of consumers to buy particular commodity
demand
the ability of the business to provide for the demand of consumers.
supply
the amount of satisfaction that is derived by consumers from the consumption of goods
utility
the amount of satisfaction that is derived by consumers from the consumption of goods. After the continuous and successive consumption of the same goods, the satisfaction experienced by consumers starts to decrease. Diminishing utility is among the external factors affecting business.
marginal and total utility
Banking facilitates monetary and fiscal policies that affect business, and customers. Money is circulation dictates the purchasing power or the demand of the customers. Banking facilities dictates the borrowing capacity of individuals as well as the business. Banking policies play decisive role that affects the prices of goods and interest rates of investment and asset prices. The monetary policies influence the economic activities and inflation. This dynamic process is known as policy transmission mechanism.
money and banking
facilitates monetary and fiscal policies that affect business, and customers and dictates the borrowing capacity of individuals as well as the business.
banking
circulation dictates the purchasing power or the demand of the customers
money
play decisive role that affects the prices of goods and interest rates of investment and asset prices.
banking policies
influence the economic activities and inflation. This dynamic process is known as policy transmission mechanism.
monetary policies
the most important economic factor that a business has to cater to the demands of a dynamic society.
economic growth and development
dictates the amount of finances that the society is earnings
economic growwth
indicate the volume of money that is invested.
development
Other important factor that affects the operation of the business are employment density and rate of income. The per capita income and density of employment determines the rate of demand, density of demand and purchasing power of the people.
income and employment
determines the rate of demand, density of demand and purchasing power of the people.
per capita income and density of employment
(income and employment)
are important aspect of the economy that plays part in the growth of the business. The cost of raw materials, paying power of people, cost of production and cost of transportation are important components that determine the general price levels and in turn lower the profit margin of a business.
general price level
plays a part in fluctuating the cost of goods and commodities in an economy. Prosperity, recession, depression and recovery are the phases of business cycle that affect the demand and supply of goods.
trade cycle
affect the general price levels of the non-essential and essential commodities.
trade cycle
occurs when there is too much supply of money in the economy that is not supported by the output of goods and services. When there is a lot of money in circulation, the prices of goods also increase in order to sustain business resulting in the increase, resulting in the increase of cost of raw materials which are need in the production of goods.
inflation
companies face decrease of sales revenues and profits. During ____________ big organizations are not the only one who is affected but including the small ones which act as vendors of the big companies. Small organizations find it difficult to survive during recession due to lack of financial funds or availability of loans. People may shift their preferences to affordable products
recession
important factor to consider for any business involved in importation and exportation of various good and services. When _____ ______ fluctuate, they affect the ability of a company to pay its international suppliers, payment will be converted into dollar currency.
exchange rate
has a direct impact on the loans that business take to sustain or propel their growth. The higher the interest rates, business find it difficult to commit to projects that require interest rate.
interest rate
for the safety of man, animals and environment. Industries that are heavily regulated and introduction of new laws discourage.
government regulations
refers to the government’s spending and taxation practices and this has a great impact to every individual and business in the country.
fiscal policy
_____ ______ influences the cost of borrowing, the size of the tax bill, amount of money the average consumer can afford to spend.
fiscal policy
paly vital role in the development of economic growth of the global economy. _______ brings employment opportunities, enhances the economy of the region, and creates revenue for the local government.
tourism
On the social level ______ leads to intercultural interaction.
tourism
the most overlooked factor when comparing competing metro areas is the livability or the quality of life. This can be the X factor that differentiates two competitive metro areas
Quality of life
