Essential Standard 1.00. Understand the role of business in the global economy. Objective 1.01. Understand economic systems. EQ. How do businesses satisfy needs and wants? What are the 6 steps necessary for making choices?
Understand the role of business in the global economy.
Understand economic systems.
Attending College vs. Not Attending College
Lifetime earnings of a college graduate
Immediate earnings of high school graduate
1. Define the problem.
2. Identify the alternatives.
3. List all the advantages and disadvantages.
4. Choose among alternatives.
5. Act on your choice.
6. Evaluate your decision.
What are the three economic questions that all economies must answer?
Centered on family
The peopleEconomic Systems
Capitalism allows the freedom of consumption and production of goods and services.
The economic system of the United States is based on capitalism.
The four principles of U.S. economic system are:
What is the role of consumers in a market economy?
A consumer buys and uses goods and services.
Consumers decide what to buy, where to buy, from whom to buy, and what price they are willing to pay.
A consumer includes individuals, businesses, and government.
What is the role of producers in a market economy?
Producers determine what products and services will be available, what needs and wants they will satisfy, and the prices they want to receive.
The market economy is based on the principles of supply and demand.
Demand is the quantity of goods or services that consumers are willing and able to buy.
Consumers set the demand for goods and services.
Demand influences how much producers will supply.
A marketplace is anywhere that goods or services exchange hands.
Market (equilibrium) price is the point where supply and demand are equal.
Intro to Business, 6e, Thomson South-Western