In Pursuit of Prosperity: The Fundamentals of Business and Economics

1. In Pursuit of Prosperity: The Fundamentals of Business and Economics Excellence in Business, 3e

2. This Course Will Help Your Career • Learn what it takes to run a business • Build a business vocabulary • Develop workplace skills • Learn about various occupations • Appreciate business careers today Excellence in Business, 3e

3. What is a Business? • For-Profit • Money motive • Not-for-profit • Social service Excellence in Business, 3e

4. Categories of Business • Goods-producing • Services Excellence in Business, 3e

5. What is Economics? • Microeconomics • Macroeconomics • Economic system Excellence in Business, 3e

6. Factors of Production • Resources • Capital • Entrepreneurs • Knowledge Excellence in Business, 3e

7. Types of Economic Systems • Free-market system • Capitalism • Mixed capitalism • Planned system • Socialism • Communism Excellence in Business, 3e

8. Microeconomics The Forces of Supply and Demand Excellence in Business, 3e

9. How Does a Free-Market System Work? • Supply and demand • Competition • Government intervention Excellence in Business, 3e

10. Understanding Demand • Consumer income • Consumer preferences • Price of substitute goods • Price of complementary goods • Advertising and promotion spending • Expectations about future prices Excellence in Business, 3e

11. Demand Curve for Airline Tickets • A demand curve is the relationship between the amount of product that buyers will purchase at various prices. • Demand curves typically slope downward. • When airlines reduce ticket prices, demand for airline tickets rises. Excellence in Business, 3e

12. Variable Shifts Right When: Shifts Left When: Consumer Income Increases Decreases More Favorable Consumer Preferences Less Favorable Price of Substitutes Increases Decreases Decreases Increases Price of Complementary Goods Increases Decreases Advertising-Promotion Consumer Expectations Pessimistic Optimistic Decreases Number of Buyers Increases Expected Shifts in Demand Curve Excellence in Business, 3e

13. Understanding Supply • Goods and services • Supply • Price Excellence in Business, 3e

14. Supply Curve for Airline Tickets • A supply curve is the relationship between prices and quantities sellers are willing to offer for sale, regardless of demand. • Supply curves typically slope upward. • When ticket prices rise, quantity supplied also increases. Excellence in Business, 3e

15. Variable Shifts Right When: Shifts Left When: Costs of Inputs Decreases Increases Number of Competitors Decreases Increases New Technology Decreases Production Costs Increases Production Costs Suppliers Expect That Future Sales Prices Will Decline Will Increase Expected Shifts in Supply Curve Excellence in Business, 3e

16. How Demand and Supply Interact • High price reduces demand • Low price reduces supply • Right price balances supply and demand Excellence in Business, 3e

17. Macroeconomics Issues for the Entire Economy Excellence in Business, 3e

18. Free-Market Competition • Pure competition • Monopoly • Oligopoly • Monopolistic competition Excellence in Business, 3e

19. Competitive Advantage • Price • Speed • Quality • Service • Innovation Excellence in Business, 3e

20. The Role of Government • Promotes competition • Regulates industries • Deregulates industries • Protects rights of stakeholders • Contributes to economic stability Excellence in Business, 3e

21. Fostering Competition • Antitrust legislation • Mergers and acquisitions Excellence in Business, 3e

22. Regulating and Deregulating Industries • Fair competition • Business ethics • Working conditions • Public safety Excellence in Business, 3e

23. Protecting Stakeholders • Consumer Product Safety Commission (CPSC) • Environmental Protection Agency (EPA) • Equal Opportunity Employment Commission (EEOC) • Federal Communications Commission (FCC) • Federal Aviation Administration (FAA) • Federal Energy Regulation Commission (FERC) Excellence in Business, 3e

24. Protecting Stakeholders • Federal Highway Administration (FHA) • Federal Trade Commission (FTC) • Food and Drug Administration (FDA) • Interstate Commerce Commission (ICC) • Occupational Safety and Health Administration (OSHA) • Securities and Exchange Commission (SEC) Excellence in Business, 3e

25. Contributing to Economic Stability • Business cycle • Economic expansion • Economic contraction • Fiscal policy • Revenue and spending • Monetary policy • Interest rates Excellence in Business, 3e

26. Monitoring Major Economic Indicators • Interest rates • Housing starts • Unemployment statistics • Durable-goods orders Excellence in Business, 3e

27. Measuring Price Changes • Purchasing power • Inflation • Deflation • Consumer Price Index (CPI) • Producer Price Index (PPI) Excellence in Business, 3e

28. Measuring National Output Dollar Value Gross Domestic Product (GDP) Gross National Product (GNP) Final Goods and Services Yes Yes Domestic Businesses Yes Yes Foreign-Owned Businesses Yes No Overseas Operations No Yes Excellence in Business, 3e

29. Prime interest rate Housing starts Unemployment rate Durable-goods orders Labor productivity rate Balance of trade Inflation rate Consumer price index Gross domestic product Producer price index Ten Economic Performance Indicators Excellence in Business, 3e

30. History of U.S. Economic Growth • Age of Industrialization (1900-1944) • Postwar Golden Era (1945-1969) • Turbulent Years (1970-1979) • Rise of Global Competition (1980-1989) • New Economy and Beyond (1990 to Today) Excellence in Business, 3e

31. Challenges of Globalization • Products and services • Managing a small business • Globalization and workforce diversity • Ethics and social responsibility • Technology and electronic commerce Excellence in Business, 3e