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Chapter 3: The Economy

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  • Banknotes and coins are considered as what type of payment?
    They are cash payments.
  • What are the two ways to put advertisements?
    Through print media and electronic media.
  • What do you call an organization that offers products or services in exchange for money?
    A Company
  • When are electronic payments used?
    They are used when people pay for things on the internet with their cards.
  • What are the three main areas of economy?
    Production, Distribution, and Consumption
  • True or False. Coca- Cola is a large company.
    True.
  • What type of advert are special prices, discounts, and prizes?
    They are called Promotions.
  • What is the basis of the economy?
    Consumption
  • 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.
  • What do you call the money we save?
    It is called savings.
  • How do companies make profit?
    They make profit when the price of the product or service is more than the cost of production.
  • A company which has fewer than 50 employees is called?
    A small company.
  • 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 method of payment takes the payment from people’s bank accounts?
    They pay through card/s.
  • What are medium- sized companies?
    They are companies that have between 50 and 250 employees.
  • 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.
  • Give three (3) examples of electronic media.
    Radio, Television, Social Media (Facebook, Twitter, Instagram, TikTok) Ads, etc…
  • This type of advert links products with famous people like celebrities.
    They are called Association.
  • What is a Public Service or Informative Advertising?
    It’s an advertisement which helps people in many ways.
  • 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
  • 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 type of advertising presents the benefits of a company’s product or service?
    It’s called a Persuasive Advertising.
  • What do you call the short and memorable phrases which explains a product?
    It’s called a Slogan.
  • Magazines are what type of medium for advertisements?
    They are print media.