Putting It Together: Economic Environment.pdf - Putting It...

Putting It Together: Economic
Environment
Synthesis
In this chapter you learned about the fundamental economic principles that
affect the environment in which businesses operate. Understanding the
economy is like getting the weather forecast before you head out the door.
Might you need to pack a sweater or an umbrella or grab some sunscreen?
Perhaps, like Dorothy in The Wizard of Oz , head for the nearest cellar? If you
ignore the forecast, you can find yourself unprepared and caught in a storm. Of
course, economic forecasts aren’t totally reliable—sometimes there’s a freak
weather event that no one saw coming. Nonetheless, having a basic
understanding of how supply and demand work, how different economic
systems function, and how the business cycle connects to the economy can help
you make informed decisions—and make the best out of a rainy day.
Learning Resource
Putting It Together: Economic Environment ...
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Summary
In this chapter you learned about the fundamental principles of economics and
how they shape the business environment. Below is a summary of the key points
covered.
What Is Economics?
Economics focuses on the ways in which people, businesses, and governments
make decisions when faced with scarce resources. Economists study the