“ENTREPRENEURSHIP”

Name: Areesha Ejaz

Reg.No.: FA17-BBA-025

ASSIGNMENT~2
ECONOMY:

An economy is the large set of inter-related production and consumption activities that aid in
determining how scarce resources are allocated. The production and consumption of goods and
services are used to fulfill the needs of those living and operating within the economy, which is
also referred to as an economic system.

Understanding Economies

An economy encompasses all activity related to production, consumption, and trade of goods and
services in an area. An economy applies to everyone from individuals to entities such as
corporations and governments. The economy of a particular region or country is governed by its
culture, laws, history, and geography, among other factors, and it evolves due to necessity. For
this reason, no two economies are identical.

Types of Economies

Market-based economies allow goods to flow freely through the market, according to supply and
demand. The United States is considered a market economy where consumers and producers
determine what’s sold and produced. Producers own what they make and decide their own
prices, while consumers own what they buy and decide how much they’re willing to pay. 

However, the law of supply and demand can impact prices and production. If consumer demand
for a specific good increases and there's a resulting supply shortage, prices tend to rise as
consumers are willing to pay more for that good. In turn, production tends to increase to satisfy
the demand since produces are driven by profit. As a result, a market economy has a tendency to
naturally balance itself. As the prices in one sector for an industry rise due to demand, the
money, and labor necessary to fill that demand shift to those places where they're needed.

Pure market economies rarely exist since there's usually some government intervention or central
planning. Even the United States could be considered a mixed economy. Regulations, public
education, social security benefits are provided by the government to fill in the gaps from a
market economy and help to create balance. As a result, the term market economy refers to an
economy that is more market-oriented in general.
Command-based economies are dependent on a central political agent, which controls the price
and distribution of goods. Supply and demand cannot play out naturally in this system because it
is centrally planned, so imbalances are common.

Green economies depend on renewable, sustainable forms of energy. These systems operate with
the end goal of cutting carbon emissions, restoring biodiversity, relying on alternative energy
sources and generally preserving the environment. Green economies tend to focus on
technological innovations that increase energy efficiencies. The goal of green economies is to
provide consumption and production while reducing or eliminating any adverse impacts on the
earth and its resources.

COSTS:

An amount that has to be paid or given up in order to get something.

In business, cost is usually a monetary valuation of

(1) effort,

(2) material,

(3) resources,

(4) time and utilities consumed,

(5) risks incurred, and

(6) opportunity forgone in production and delivery of a good or service. All expenses are costs,
but not all costs (such as those incurred in acquisition of an income-generating asset) are
expenses.

SKILLS:

A skill is the ability to perform an action with determined results often within a given amount of
time, energy, or both. Skills can often be divided into domain-general and domain-specific skills.
For example, in the domain of work, some general skills would include time management,
teamwork and leadership, self-motivation and others, whereas domain-specific skills would be
used only for a certain job. Skill usually requires certain environmental stimuli and situations to
assess the level of skill being shown and used.

People need a broad range of skills to contribute to the modern economy. A joint ASTD and U.S.
Department of Labor study showed that through technology, the workplace is changing, and
identified 16 basic skills that employees must have to be able to change with it. Three broad
categories of skills are suggested and these are technical, human, and conceptual.The first two
can be substituted with hard and soft skills, respectively.