Socio Economic Part 1 Flashcards
study of the interrelation between economic activity and social behavior, analyzing social norms, ethics, sentiments, and other factors and how these affect the economy.
Socioeconomics/socio-economics
the systematic analysis of identifying and evaluating the potential socioeconomic and cultural impacts of a proposed development on people’s lives and circumstances, families, and communities
socioeconomic impact study
What are the 6 steps in conducting a socioeconomic impact study
- Scoping
- Profiling baseline conditions
- Predicting impacts
- Identifying mitigation
- Evaluating significance
- Applying mitigation and monitoring
There is a preliminary analysis identifying and prioritizing the study’s considerations and required information.
Scoping
The firm focuses on gathering information about the socioeconomic environment and context of the proposed development
Profiling baseline conditions
The firm analyzes information gathered from issues scoping, baseline profiling, and past experiences in predicting possible socioeconomic impacts
Predicting impacts
The firm alleviates its predicted adverse impacts that require mitigation.
Identifying mitigation
The firm determines whether a proposed development will cause significant adverse impacts on valued socioeconomic components/factors
Evaluating significance
The firm must have good monitoring (or follow-up) programs to effectively mitigate the socioeconomic impacts and adopt the mitigation if necessary.
Applying mitigaation and monitoring
What are the 7 economic factors that affect the business
- Demand and supply
- Income/Wage
- Exchange rates
- Interest rates
- Taxes
- Inflation
- Recession
It is a measure of the rate of rising prices of products and services in the economy, especially for necessities
Inflation
It is the significant decline in economic activity spread across the economy, lasting more than a few months
Recession
What are the 6 factors that affect the health of the consumers and their community
1.Social status and income
2.Education level
3.Physical environment
4.Social support network
5.Genetics and personal factors
6.Access to health services
People with a higher social status and an above-average income are inclined to have better health since they have better access to health care.
Social status and income
There is a tendency to have poorer health when living in communities with low average education levels.
Education level
Living in safe homes, working in healthy workplaces, and having access to safe drinking water, clean air, healthy communities, and updated infrastructure are vital factors to good health.
Physical environment
People with plenty of support from their friends, family, and community are inclined to have better health
Social support network
Our genetics determine health, lifespan, and probability of contracting diseases.
Genetics and personal factors
There is a noticeable difference in people’s health when they can access quality health facilities and preventive medication and procedures
Access to health services
Recall that economic utility (or simply utility) is the consumer’s satisfaction from consuming a product or service
Utility maximization
Children from low socioeconomic status advance their academic skills slower than those from higher socioeconomic status
Socioeconomic status
clarifies the principles by which a firm decides how much of each commodity it sells it shall produce and how much of each kind of economic resource it shall use.
Production Theory
4 reasons why a firm conducts socioeconomic impact study
- To prove that the firm’s activities benefit the economies and societies in which it operates and mitigate the risk of negative publicity, protest, and government support for its current and future operations.
- To attest that the firm contributes to public policy goals through its profitable activities, helping policymakers develop the right mix of rules, incentives, and public services needed to maximize the firm’s contribution.
- To prove that the firm helps predict loyalty, performance, stability, and capacity for the growth of suppliers, distributors, and retail partners. It identifies vulnerabilities and opportunities to address them.
- To confirm that the firm understands the needs, aspirations, resources, and incentives of its customers. It enables the firm to develop profitable new products and services and to improve its existing offerings.
studies how people spend their money based on their individual preferences and budget constraints
Consumer Theory
Recall that marginal utility is the change in total economic utility resulting from a one-unit change (meaning buying more than one) when an individual consumes a product or service
Decreasing marginal utility
Consumers usually make more than one (1) shopping trip when they purchase products or services due to dissatisfaction and wanting to consume more
Nonsatiation
refers to the period where at least one (1) economic resource is fixed (i.e., the capital is constant)
short-run
refers to the period where all economic resources are considered variables as the firm conducts research and development.
long-run
The firm aims to know the cheapest combination of economic resources (inputs) to produce the desired output.
Short-run cost minimization
The firm aims to know its most profitable output level
Short-run profit maximization
The firm changes production levels, such as building a new plant or adding a production line, as it expects economic profits
Long-run profit maximization
must be aware of the production behavior that leads to maximizing the output within the limited numbers of available outputs, helping the firm earn the maximum profit
Entrepreneur
