bus508_w2_c3 - BUS 508, Week 2, Chapter 3: Economic...

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BUS 508, Week 2, Chapter 3: Economic Challenges Facing Contemporary Business Slide # Topic Narration 1 Introduction Welcome to The Business Enterprise. In this lesson, we will discuss the Economic Challenges Facing Contemporary Business. Please go to the next slide. 2 Objectives Upon completion of this lesson, you will be able to: Analyze the factors that drive supply and demand, different types of market structures in a free enterprise system, and factor of stability in a nation’s economy. And formulate competitive market entry strategies based on analysis of global markets. In order to achieve these objectives, the following supporting topics will be covered: Microeconomics versus macroeconomics; Forces of supply and demand; Macroeconomics; Capitalism; Socialism and communism;
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Economic performance; Monetary and fiscal policy; and Global economic challenges. Please go to the next slide. 3 Microeconomics vs. Macroeconomics Economists develop economic principles and theories at two levels: The micro level; and The macro level. Macroeconomics examines the economy as a whole or its basic subdivisions. These include the: Government sector; Household sector; and Business sector. Macroeconomics looks at economic problems by examining total output, total employment, total income, aggregate expenditures, and the general level of prices. Microeconomics is concerned with the individual units of the economy such as: A person; A household; A firm; or An industry. At this level of analysis, the economist observes the details of an economic unit, or very small segment of the economy, under a figurative microscope. Please go to the next slide.
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4 Macroeconomics No two countries have exactly the same economic system. In general, however, these systems can be classified into three categories: private enterprise systems, planned economies, or combinations of the two, referred to as mixed economies. Most industrialized nations operate economies based on the private enterprise system , also known as capitalism or a market economy . A private enterprise system rewards businesses for meeting the needs and demands of consumers. Four basic types of competition take shape in a private enterprise system: pure competition, monopolistic competition, oligopoly, and monopoly. Pure competition is a market structure, like that of small-scale agriculture or fishing, in which large numbers of buyers and sellers exchange homogenous products and no single participant has a significant influence on price. Monopolistic competition is a market structure, like that for retailing, in which large numbers of buyers and sellers exchange differentiated products, so each participant has some control over price. An
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This note was uploaded on 01/24/2012 for the course BUS 508 508 taught by Professor Drfrederick during the Spring '11 term at Strayer.

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bus508_w2_c3 - BUS 508, Week 2, Chapter 3: Economic...

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