Economic factors (2024)

FAQs

What are the economic factors? ›

Economic factors include economic growth, percentage of unemployment, inflation, interest and exchange rates, and commodity (oil, steel, gold, etc) prices. These affect the discretionary income and purchasing power of households and organisations alike.

Key Takeaways

Economic factors that affect the demand for consumer goods include employment, wages, prices/inflation, interest rates, and consumer confidence. When employment, wages, and consumer confidence are high, the demand for consumer goods increases. If they are low, the opposite is true.

the reason why we must answer the three basic economic questions (what and how much g/s to produce, how will they be produced, and for whom will they be produced) occurs when wants are greater than resources available.

Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed?

Economic impact studies estimate the total dollars, jobs, and household income generated in an economy due to a new activity; for example, a business coming to or growing in the region, a festival, construction of an event center.

Economic conditions refer to the state of an economy that determine the scale of production and consumption activities that relate to determining how resources are allocated. In the modern world, almost all economies are based on market-based economic principles, where the laws of supply and demand determine prices.

a commodity or service that can be utilized to satisfy human wants and that has exchange value.

Answer and Explanation: Economic influence is any kind of outside pressure on a business drawn from normal economic cycles.

Positive economics is tangible, so anything that can be substantiated with a fact, such as the inflation rate, the unemployment rate, housing market statistics, and consumer spending are examples of positive economics.

Factors of production are inputs used to produce an output. They are resources a company requires to attempt to generate a profit by producing goods and services. Factors of production are divided into four categories: land, labor, capital, and entrepreneurship.

Who owns the factors of production? ›

Capitalism: In capitalistic societies , private enterprises and individuals own most of the factors of production. The factors are valued for their profit under capitalism. Socialism: Under socialism , the factors of production are owned by everyone in the society and they're valued for their usefulness to society.

Key Takeaways

Economists address these three questions: (1) What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services?

Students will read and take notes on the three main questions of economics. These are what to produce, how to produce it, and who to produce it for.

The 3 big questions of economics are – 1. What to produce? , 2. How to produce? , 3. Who to produce it for?

Social and economic factors include factors such as income, education, employment, community safety and social support. The choices that are available in a community are impacted by social and economic factors. These choices include our abilities to afford medical care and housing and to manage stress.