Chapter 3. Economic Challenges Facing Global and Domestic Business. Learning Goals. Distinguish between micro-economics and macroeconomics. Explain the factors that drive supply and demand. Describe the four types of market structures in a private enterprise system.
Distinguish between micro-economics and macroeconomics.
Explain the factors that drive supply and demand.
Describe the four types of market structures in a private enterprise system.
Compare the three major types of economic systems.
Identify and describe the four stages of the business cycle.
Explain the factors that affect the stability of a nation’s economy.
Discuss how monetary and fiscal policy are used to manage an economy’s performance.
Describe the major global economic challenges of the 21st century.
Analysis of the choices people and governments make in allocating resources.
The study of small economic units, such as individual consumers, families, and businesses.
A change in overall demand, shifts to a new demand curve.
Production plays a central role in determining the overall supply of goods and services.
Property owned and shared by the community under a strong central government.
Adopted in early 20th century by many nations, but government-owned monopolies often suffered from inefficiency.
Government ownership and operation of major industries, such as healthcare or communications.
Some private ownership of industry allowed.
Government controls determine business ownership, profits, and resource allocation.
Economic system should provide stable business environment and sustained growth.
The unemployment rate is the percentage of total workforce actively seeking work but currently unemployed.
Government uses monetary and fiscal policy to fight unemployment,
increase spending, and reduce the duration and severity of economic recession.