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Chapter 2 GB - resource when educated “Teach a person to...

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Chapter 2 How Economic Conditions Affect Businesses What is Economics- Study of how society chooses to apply resources to produce goods and services and distribute them for consumption among various competing groups and individuals. Marco- operation of a nation’s economy Microeconomics- behavior of people and organizations in particular markets Resource development- study of how to increase resources and to create the conditions that will make better use of those resources Why Econ was known as the “Dismal Science” Dismal Science- Followers of Malthus believe that there are too many people in the world and that the solution to poverty is birth control, which includes such measure as forced abortions and forced sterilization. Some macroeconomists believe that a large population can be valuable
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Unformatted text preview: resource, when educated. “Teach a person to start a fish farm, and he or she will be able to feed a village for a lifetime” Growth Economics and Adam Smith Smith envisioned creating more resources so that everyone could become wealthier. “Freedom” was vital to the survival of any economy, especially the freedom to own land or property and the freedom to keep the profits from working the land or running a business. People will work hard if they have incentives for doing so. How Business benefit the community “Invisible Hand” that helps the economy grows and prosper through the production of needed goods, services, and ideas. “Invisible Hand” turns self directed gain into social and economic benefits for all...
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