Discussion Questions: CapsimCore is a basic business simulation that provides hands on experience in running a company and the company that we would run in the CapsimCore simulation is a private enterprise.

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• Economic Systems 1. What set of questions do all economic system address? 2. What are the four conditions that must exist for the free enterprise system to exist? 3. How would you define supply... ? 4. How would you define demand? 5. What are some examples of economic costs? 6. How would you describe the concept of scarcity? What are the four conditions that must exist for the free enterprise system to exist? What are the implications of the relationship between supply and demand? • The Private 7. Define the term supply and demand. 8. The private enterprise system requires the existence of four conditions. What are those conditions? What are the implications of the relationship between supply and demand? 9. What best describes the concept of “scarcity?” 10. What does it mean to describe markets as “specialized”? 11. What roles does innovation play in the private enterprise system? What is the incentive to innovate, and why might that incentive not exist in other economic systems? • Decision Making and Opportunity Costs 12. Give an example of “uncertainty” and how it relates to risk and decision making. 13. How would you illustrate the concept of “uncertainty”? 14. How would you illustrate the concept of “risk”? 15. Provide examples of “opportunity costs” that are relevant to taking this course. 16. What process allows managers to manage in an uncertain and risky environment? • Managing Business 17. What are the general activities of business and what roles do they play? 18. Which business activity requires funding the business and using its resources effectively? 1. Explain the relationship between supply and demand. 2. If there is an excess supply in market, what will happen to supply and demand? 3. If there is an excess demand in market, what will happen to supply and demand? 4. If technology improved in market, what will happen to supply curve in market? 5. If the income of people increased, will it affect demand of wants in market? Explain. 6. Supply and demand of Needs in markets won’t be affected by any factors. Explain. 7. If the supply curve in economy equilibrium graph shift to right, what will happen to the price and quantity in the graph? 8. If the demand curve in economy equilibrium graph shift to left, what will happen to the price and quantity in the graph? 9. By referring to the figure below, calculate the price elasticity of demand for frozenorange juice between the prices of $1.00 and $1.50. Is the demand elasticity elastic or inelastic? [Show More]

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