1. Describe the role that workers play in the game of economics.
Workers role in economics is vital. The workers are the ones who make the products and provide the services sold by producers. Workers are in the middle of being consumers and producers. When they create goods/services they become producers, and when they buy them they become consumers. These two parts can be played at the same time.
2. Explain why the workers role is unique.
Workers are important to the economy mainly because they are the ones who can play the role of producer and consumer at the same time. Nothing can be made without workers, therefore, they have a unique role in the economics.
3. Explain why it is important for producers to conduct market research.
If producers are able to understand what consumers will buy, they will be able to know what products they can sell. Producers will know the wants and needs of consumers by conducting market research and so they can make plenty of sales and allow their business to grow.
4. Give at least one example of a type of market research that producers conduct. Explain the kind of information this research provides.
Surveys. Surveys are made basically for producers to test new ideas and products on small amounts of consumers, and with their feedback, they can produce products that consumers will buy.
5. Describe the meaning of utility in economics and explain why it is different from one consumer to another.
Utility is the amount of personal satisfaction consumers get from the goods and services they purchase. The idea of utility applies to each choice you make when purchasing products and services. It is a vital element to consider when taking a look at how consumers decide. Since every persons utility is distinctive, different people will have different decisions and choices in the same circumstance.
6. Why do economists try to measure and understand utility?
Customers purchase goods and services to find satisfaction when they partake in the economy. Along these lines economists attempt to measure and comprehend utility since about every single economic choice include consumers looking for satisfaction.
7. List two characteristics of an oligopolistic industry.
a) Dominated by a small amount of large businesses
b) Oligopolistic businesses sell products very similar between each other.
8. Why are so many familiar industries oligopolies?
Because it is difficult to break into many industries.
9. Explain why circulation and ratings systems determine how much money different advertisements cost to run.
Different advertisements cost different amounts of money to run. Since the mass and news media make approximately 90% of their revenue from advertising. Most forms of media would not exist without advertising. If a media has more consumers, advertisers will pay more money. Most media sources are owned by very large companies, there are many media sources which people are able to choose from. The more famous and dominant they are in the media industry, the more successful the advertisements would be.
