商务学导论

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Understanding Economics and How it Affects Business

• How Economic Conditions Affect Business
  • what is Economics:is the study of how society chooses to employ resouces to produce goods and services and distribute them for consumption among various competing groups and individuals
    • macroeconomics
    • microeconomics
  • The Secret to Creating a Wealthy Economy
  • Adam Smith and the Creation of Wealth
  • How Businesses Benefit the Community:business owners are motivated to work hard because they know they will earn, and keep, the rewards of their labor.When they prosper,as the owner of this restaurant has,they are able to add employees and grow,indirectly and the large economy grow in the process.
• Understanding Free_Market Capitalism
  • Under free_market capitalism people havefour basic rights:
    • 1.the right to own private property. 2.the right to own a business and keep all the business's profits. 3.the right to freedom of competition. 4.the right to freedon of choice.
  • How Free Markets Work
    • you and i and other consumers send signals to telk producers what to make,how many,in what color,and so ob.We do that by choosing to buy or not to buy certain products and services.
  • How Prices Are Determined
    • prices are determined by buyers and sellers negotiating in the marketplace.
  • Tje Economic Concept of Supply:
    • supply refers to the quantities of products manufacturers or owners are willing to sell at different prices at a specific time.
  • The Economic Concept of Demand
    • Demond refers to the quantity of products that people are willing to buy at different prices at a specific time.
  • The Equilibrium Point,or Market Price
    • Market price:the price determined by supply and demand.
  • Competition within Free Markets
    • perfect competition:the degree of competition in which there are many sellers in a market and none is large enough to dicate the price of a product.
    • monopolistic competition:the degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different.
    • oligopoly:a degree of competition in which just a few sellers dominate the market.
    • monopoly:a degree of competition in which only one seller controls the total supply of a product or service,and sets the price
  • Benefits and Limitations of Free Markets
    • benefits:1.allowing open competition among companies
    • limitations:some people let greed dicate how they act.
• Understanding Socialism
  • the benefits of socialism
    • socialism:is an economic system based on the premise that sone,if not most,basic businesses should.be owned by the goverment so that profits can be more evenly distributed among the people.
    • benefit: it is supposed to be social equality
  • the negative consequences of socialism:it will takes away some businesspeople's incentives. it also tends to result in fewer inventions and less innovation
• The Trend Toward Mixed Economies
  • reaching beyond our borders:economic expansion in Africa
• Understanding the U.S Economic System
  • Key Economic Indicators
    • 1.the gross donestic product (GDP) 2.the unemployment rate:frictional unemployment;stricture unemployment;cyclical unemployment;seasonal unemployment. 3.price indexes 4.increase or decrease in productivity
  • productivity in the United States
  • productivity in the service sector
  • The Business Cycle
    • are the periodic rises and falls that occur in economies over time: boom_recession_depression_recovery.
  • stabilize the economy through fiscal policy
    • fiscal policy:refers to the federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending.such as taxation, government spending
  • fiscal policy in actio during an economic crisis
    • Keynesian economic theory is the theory that a government policy of incrasing spending coulf stimulate the economy in a recession.
  • using monetary policy to keep the economy growing
    • monetary policy is the management of the money supply and interest rates by the Federal Reserve Bank.