Chapter 3

Chapter 3 - CONTEMPORARY BUSINESS Chapter Outline CHAPTER...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CONTEMPORARY BUSINESS Chapter Outline CHAPTER 3: ECONOMIC CHALLENGES FACING GLOBAL AND DOMESTIC BUSINESS Overview of Chapter 3 Chapter 3 introduces economic theory and addresses the economic challenges facing businesses, individuals, and governments in the early years of the 21 st century. It begins by explaining microeconomics and its focus on small economic units such as families and small businesses, then comparing it to macroeconomics with its focus on a country’s overall economic policy. The text then covers the concepts of demand and supply and their effects on the price and availability of a wide variety of goods and services. Demand curves and supply curves—and their graphic depiction of this economic balance—are explained in detail, with numerous charts as examples. Next the chapter focuses on capitalism and the four degrees of competition—pure competition, monopolistic competition, oligopoly, monopoly. It moves on to a discussion of two other types of economic systems—planned economies and mixed-market economies—along with the tools for comparing and evaluating their performance. Then the four stages of a business cycle are reviewed—prosperity, recession, depression, and recovery—as well as the concepts of productivity and employment levels. The key economic price level changes—inflation and deflation—are discussed, along with the national economic indicators that measure them. Next, Chapter 3 examines the ways in which governments seek to manage economies to create stable business environments. The national economic picture is reviewed, including monetary policy, the Federal Reserve, federal budget, and federal deficit. Finally, it looks at the global economy and the factors that influence its growth and fluctuation. Learning Goal 1: Distinguish between microeconomics and macroeconomics. Key Terms economic system / economics / microeconomics / macroeconomics Class Notes / Lecture Outline Chapter opening Opening vignette –“Dodge Tries to Dethrone Ford’s Crown Victoria.” Ford has 86
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
always had the police car market, but now Dodge is moving in. How is the option of another choice a good thing for consumers, in this case, police departments? How can it be a drawback? Basic PowerPoint 1 Expanded PowerPoint 1 1. What is economics? Basic PowerPoint 2 a. Economic systems refer to the exchanges that companies and societies make as a whole, reflecting the combination of choices a nation makes to allocate resources b. Economics is the social science that analyzes the choices made by people and governments in allocating scarce resources, and related factors in producing, distributing, and consuming c. Everyone’s life is affected by economic choices —when you decide what products to buy, what services to use, or what activities fit into your schedule, you are making economic choices i. People make choices that are often global in scope; firms may emphasize American-made products but often their components come from foreign countries
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/26/2011 for the course BUSN 1140 taught by Professor Skogstrom during the Fall '10 term at MCTC.

Page1 / 31

Chapter 3 - CONTEMPORARY BUSINESS Chapter Outline CHAPTER...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online