Economic system -1

Economy is...

• A complex system of production, exchange activity and consumption

• A study on how to allocate scarce resources

• An branch of economic study focusing on large economic issue

• Any arrangement of buying and selling

What is the importance of knowing the economic problem in the society before starting a business?

• Understanding society's economic problems can lead to overspending and financial instability

• Not considering the economic problem may result in the right methods of production

• Being unaware of the economic problem can help to decide the target market

• We can know what to produce, the equipment and methods required, and the target market

How can we decide what to offer to the consumers/market?

• Knowing the economic problems of the community

• Copying what competitors are offering

• Ignoring consumer needs and preferences

• By guessing randomly

Below is not the consideration before starting a business

• The offers that is the products or services.

• The equipment that is the resources needed, and methods.

• The clients that is the consumers, and customers.

• The board of directors that is the person in charge, and the one who owns the highest share

We must decide our products and know why we produce it

• True

• False

We get to understand the offers form our competitor and how to make our products or services different with them

• True

• False

Firms can start with any methods of production

• True

• False

Private companies or firms have an efficient ways of production to win the market competition

• True

• False

In order to efficiently produce our products, we have to find the appropriate suppliers or partners

• True

• False

People will always look for our products as long as our products are new, interesting, and have good quality

• True

• False