Wheat Supply/Demand and Price Wheat Supply/Demand and Price Kim Anderson Agricultural Economics .
Chapter 1Economic Resources Scarce Land, Labor, Capital, and Technology The Free Enterprise, or...
Transcript of Chapter 1Economic Resources Scarce Land, Labor, Capital, and Technology The Free Enterprise, or...
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Chapter 1What Is Business?
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Defining Business and Profit◦ Key Concepts
Businesses
Profit
Not-for-profit organizations
Risk
Introduction
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The Industrial Revolution and the Growth of the Factory System in the United States◦ Key Concepts Factory system
Specialization of labor
The Railroad Era◦ Key Concepts Laissez-faire system
Market domination
Antitrust policies
The Evolution of Business in the United States (cont’d)
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The Assembly Line Era, Speculation, and the Great Depression
The Post-World War II Period: International Institutions
The Globalization Era
The Evolution of Business in the United States (cont’d)
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The New Society of Knowledge Workers◦ Key Concepts
New economy
Knowledge workers
The Evolution of Business in the United States (cont’d)
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Economic Resources◦ Scarce Land, Labor, Capital, and Technology
The Free Enterprise, or Capitalist, System◦ Demand, Supply, and Price
Theory or law of demand
Price inelastic demand
Price elastic demand
Theory or law of supply
Price inelastic supply
Price elastic supply
Market clearing, or equilibrium, price
Types of Economic Systems and Their Impact on Business
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The Free Enterprise, or Capitalist, System◦ Demand, Supply, and Price Shortage
Surplus
◦ Private Property and Property Rights
Types of Economic Systems and Their Impact on Business (Cont’d)
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The Free Enterprise, or Capitalist, System◦ Product Life Cycle Theory
◦ Degrees of Competition
Market structure
Pure competition
Monopoly
Imperfect competition
Firm concentration ratios
Barriers to competition
Patents, Licensing, and tariffs
Types of Economic Systems and Their Impact on Business (Cont’d)
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The Free Enterprise, or Capitalist, System◦ Degrees of Competition Oligopoly
Monopolistic Competition
Product differentiation
Types of Economic Systems and Their Impact on Business (Cont’d)
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The Command, or Planned, Economic System◦ Key Concept
State Owned Enterprises
The Mixed Economic System◦ Key Concept
Privatization of State Owned Enterprises
The Transition Economies◦ From Command and Socialist to Free Market System
Types of Economic Systems and Their Impact on Business (cont’d)
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How Economic Performance Is Measured◦ Key Concepts Outputs
Inputs Land
Labor Entrepreneurs
Capital Money (financial capital)
Capital goods (physical capital)
Technology
Production of Goods and Services
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Business Must Provide Value to Customers◦ Not-for-Profit
Public Broadcasting System
National Public Radio
State Universities
◦ Private Sector
Investors
Managers
Employees
Suppliers
Society
Measuring Business Performance
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Maximizing Profit and Shareholder Wealth
Measuring Business Performance (cont’d)
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Measuring Consumer Confidence Consumer Confidence Index
Conference Board
Consumer Confidence Survey
The Consumer Knows Best
Consumer Demographics and Psychographics
◦ Key Concepts Target group
Market segmentation
Psychographics
Cultural Diversity
◦ Key Concept Culture
Diverse Workforce
Consumer Demand for Goods & Services
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Measuring Gross National Product (GNP),
Gross National Income (GNI), and
Gross Domestic Product (GDP)◦ Key Concepts
Consumption
Investment
Government expenditure
Net exports
National Output of Goods and Services
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National Output of Goods and Services
The Components of U.S. GDP, 2017
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Measuring Gross National Product, Gross National Income, and Gross Domestic Product (cont’d)◦ Key Concepts
Nominal GNI, GNP, or GDP
Real GNI, GNP, or GDP
Real National Output of Goods & Services
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Real GDP =Nominal GDP
GDP deflator
Measuring Gross National Product, Gross National Income, and Gross Domestic Product (cont’d)◦ Key Concepts
Nominal GNI, GNP, or GDP
Real GNI, GNP, or GDP
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Exhibit 1.7 U.S. Nominal and Real GDP, 2007-2016 (US$ billions)
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Business Cycles
Demand for Goods and Services (Cont’d)
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Innovations in Information Technology◦ Key Concept Bandwidth
Smartphones
E-Business◦ Examples Alibaba.com
Amazon.com
◦ Key Concepts B2C
B2B
The Digital Era
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Impact of IT on Globalization, Culture, Society, and Politics◦ Helping developing countries
A Better Life Foundation
Social media
The Digital Era (cont’d)
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Private Versus Public and Not-for-profit Sector Functional Areas Include:
◦ Accounting
◦ Consulting
◦ Finance
◦ Information Systems◦ International Business
◦ Management◦ Marketing◦ Supply Chain
Careers in Business
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Websites that focus on business careers include:◦ Careers in Business
◦ Major Private Business Websites (Like Bechtel’s)
Careers in Business (cont’d)
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Largest Company by Revenue in Each State 2015
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Chapter 1 Exhibits
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