Competitive Markets Customer base is increased by winning against competition, along with profits and shares Price competition Lowest prices or best possible prices Non price competition Where the focus is excelling in aspects other than price Informative advertising Advertisement that …
Trade Unions Organizations that have workers as members that ensure that workers interests and requirements are promoted It focuses on gaining benefits for the customers and ensure their jobs become better Functions of trade union Non-wage benefits are negotiated Employees’ …
3.3.1 Factors Affecting an Individual’s Choice of Occupation A. Wage Factors Basic Pay (Wage/Salary): Higher wage generally attracts more workers. Overtime Pay: Payment for extra hours beyond normal work. Bonuses: Extra income based on performance or company profits. Commission: Percentage …
Disposable income Income after all charges and taxes have been paid Spending Also called consumption To satisfy needs and wants Provide satisfaction Factors affecting consumption Disposable income The higher the income, higher the consumption Wealth Wealthy people usually spends more …
Money Something that is generally acceptable as a means of payment Barter System Exchange one good for another or one service for another However, such system can’t work in global trade. Co-existence of needs will not always occur that is …
2.11.1 Definition of the Mixed Economic System A mixed economic system combines elements of both the market economy and the planned economy. It includes both: Private sector decision-making via the price mechanism, and Government intervention to correct market failure and …
2.10.1 Definition of Market Failure Market failure occurs when the price mechanism fails to allocate resources efficiently, resulting in overproduction or underproduction of certain goods and services. In such cases, the market does not achieve allocative efficiency, and social welfare …
2.9.1 Definition of Market Economic System A market economic system (also known as a free market economy or capitalist economy) is an economic system in which economic decisions are made through the interaction of supply and demand without significant government …
2.8.1 Definition of PES Price Elasticity of Supply (PES) measures the responsiveness of quantity supplied of a good to a change in its price. Formula basis: % change in quantity supplied / % change in price PES is generally positive, …
2.7.1 Definition of PED Price Elasticity of Demand (PED) measures the responsiveness of quantity demanded of a product to a change in its price. Formula basis: % change in quantity demanded / % change in price It is always negative, …