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Chapter 3: The Economy
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Will the person be able to reach his goal given the following situation? Goal: To save 2000 Euros for vacation next month. Savings: 1500 Euros Income: 1000 Euros Expense: Rent- 450 Euros Groceries- 100 Euros
No because the person lacks 290 Euros to achieve their goal.
Who are called green consumers?
They are people who support green consumerism. They use little electricity, like products made from renewable materials, and they recycle products.
What is the basis of the economy?
Consumption
What do you call the money we save?
It is called savings.
When are electronic payments used?
They are used when people pay for things on the internet with their cards.
What method of payment takes the payment from people’s bank accounts?
They pay through card/s.
Banknotes and coins are considered as what type of payment?
They are cash payments.
This type of advert links products with famous people like celebrities.
They are called Association.
What type of advert are special prices, discounts, and prizes?
They are called Promotions.
What do you call the short and memorable phrases which explains a product?
It’s called a Slogan.
Give an example if a Public Service Advertising.
Wearing face mask inside the metro to prevent the spread of Covid. Drinking water to avoid dehydration. Etc…
What is a Public Service or Informative Advertising?
It’s an advertisement which helps people in many ways.
What type of advertising presents the benefits of a company’s product or service?
It’s called a Persuasive Advertising.
Give three (3) examples of electronic media.
Radio, Television, Social Media (Facebook, Twitter, Instagram, TikTok) Ads, etc…
Magazines are what type of medium for advertisements?
They are print media.
What are the two ways to put advertisements?
Through print media and electronic media.
What are the six (6) departments in companies found in your book?
Production Department, Research and Development Department, Purchasing Department, Marketing Department, Human Resources Department, Accounting and Finance Depa
True or False. Coca- Cola is a large company.
True.
What are medium- sized companies?
They are companies that have between 50 and 250 employees.
A company which has fewer than 50 employees is called?
A small company.
Which company will make a profit? Why? Company A: Cost of Production- 30 Euros Sale Price- 29.99 Euros Company B: Cost of Production- 100 Euros Sale Price- 129.99 Euros
Company B will make profit because their sale price is higher than the cost of production.
How do companies make profit?
They make profit when the price of the product or service is more than the cost of production.
What are the three main areas of economy?
Production, Distribution, and Consumption
What do you call an organization that offers products or services in exchange for money?
A Company


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