1、Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall Copyright 2015 Pearson Education,Inc.1-1#The U.S.Business Environment1Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-2 Copyright 2015 Pearson Education,Inc.Introduction Why have gasoline prices gone up and down so d
2、ramatically and why do prices change from one day to the next?In general,gas prices fluctuate as a result of four forces:supply,demand,global trends,and uncertainty.After studying this chapter,you should be able to answer the learning objectives listed on the next slides.Copyright 2012 Pearson Educa
3、tion,Inc.Publishing as Prentice Hall Copyright 2015 Pearson Education,Inc.1-3 1.Define the nature of U.S.business and identify its main goals and functions.2.Describe the external environments of business and discuss how these environments affect the success or failure of any organization.3.Describe
4、 the different types of global economic systems according to the means by which they control the factors of production.Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall Copyright 2015 Pearson Education,Inc.1-4 4.Show how markets,demand,and supply affect resource distribution in the Un
5、ited States,identify the elements of private enterprise,and explain the various degrees of competition in the U.S.economic system.5.Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system.Copyright 2012 Pearson Ed
6、ucation,Inc.Publishing as Prentice Hall 1-5 Copyright 2015 Pearson Education,Inc.The Concept of Business and Profit Business organization that provides goods or services to earn profits Profits difference between a businesss revenues and its expensesCopyright 2012 Pearson Education,Inc.Publishing as
7、 Prentice Hall 1-6 Copyright 2015 Pearson Education,Inc.The External Environment of Business External Environment everything outside an organizations boundaries that might affect itCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-7 Copyright 2015 Pearson Education,Inc.Dimensions of
8、 the External EnvironmentCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-8 Copyright 2015 Pearson Education,Inc.Economic Systems Economic system a nations system for allocating its resources among its citizens,both individuals,and organizationsCopyright 2012 Pearson Education,Inc.
9、Publishing as Prentice Hall 1-9 Copyright 2015 Pearson Education,Inc.Factors of Production Factors of production the resources that a countrys businesses use to produce goods and servicesCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-10 Copyright 2015 Pearson Education,Inc.Types
10、of Economic Systems Planned Economy economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions Communism,socialismCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-11 Copyright 2015 Pearson
11、 Education,Inc.Types of Economic Systems(cont.)Market economy individual producers and consumers control production and allocation by creating combinations of supply and demandCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-12 Copyright 2015 Pearson Education,Inc.Mixed market econ
12、omy features characteristics of both planned and market economies Privatization process of converting government enterprises into privately owned companiesTypes of Economic Systems(cont.)Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-13 Copyright 2015 Pearson Education,Inc.Demand
13、 and Supply in a Market Economy Demand the willingness and ability of buyers to purchase a product(a good or a service)Supply the willingness and ability of producers to offer a good or service for saleCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-14 Copyright 2015 Pearson Educa
14、tion,Inc.Demand and SupplyCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-15 Copyright 2015 Pearson Education,Inc.Demand and Supply(cont.)Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-16 Copyright 2015 Pearson Education,Inc.Private Enterprise and Competitionin
15、 a Market Economy Private enterprise system one that allows individuals to pursue their own interests with minimal government restriction private property rights,freedom of choice,profits,and competitionCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-17 Copyright 2015 Pearson Educ
16、ation,Inc.Private Enterprise and Competition in a Market Economy(cont.)1.Private property rights ownership of the resources used to create wealth is in the hands of individuals2.Freedom of choiceyou can sell your labor to any employer you chooseCopyright 2012 Pearson Education,Inc.Publishing as Pren
17、tice Hall 1-18 Copyright 2015 Pearson Education,Inc.3.Profitsthe lure of profits leads some people to abandon the security of working for someone else and assume the risks of entrepreneurship4.Competition occurs when two or more businesses vie for the same resources or customersPrivate Enterprise an
18、d Competition in a Market Economy(cont.)Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-19 Copyright 2015 Pearson Education,Inc.Degrees of CompetitionCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-20 Copyright 2015 Pearson Education,Inc.Degrees of Competition(c
19、ont.)For perfect competition to exist,two conditions must prevail:1.all firms in an industry must be small,and 2.the number of firms in the industry must be largeCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-21 Copyright 2015 Pearson Education,Inc.Perfect Competition1.The produc
20、ts of each firm are so similar that buyers view them as identical to those of other firms.2.Both buyers and sellers know the prices that others are paying and receiving in the marketplace.3.Because each firm is small,it is easy for firms to enter or leave the market.4.Going prices are set exclusivel
21、y by supply and demand and accepted by both sellers and buyers.Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-22 Copyright 2015 Pearson Education,Inc.Degrees of Competition(cont.)Monopolistic Competition market or industry characterized by numerous buyers and relatively numerous
22、sellers trying to differentiate their products from those of competitorsCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-23 Copyright 2015 Pearson Education,Inc.Oligopoly market or industry characterized by a handful of(generally large)sellers with the power to influence the prices
23、 of their productsDegrees of Competition(cont.)Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-24 Copyright 2015 Pearson Education,Inc.Monopoly market or industry in which there is only one producer that can therefore set the prices of its products Natural Monopoly industry in whi
24、ch one company can most efficiently supply all needed goods or servicesDegrees of Competition(cont.)Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-25 Copyright 2015 Pearson Education,Inc.Economic Indicators Economic indicators statistics that show whether an economic system is st
25、rengthening,weakening,or remaining stable help assess the performance of an economyCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-26 Copyright 2015 Pearson Education,Inc.Economic Growth,Aggregate Output,and Standard of Living Business cycle the pattern of short-term ups and downs
26、(or expansions and contractions)in an economy Aggregate output the total quantity of goods and services produced by an economic system during a given period primary measure of growth in the business cycleCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-27 Copyright 2015 Pearson Edu
27、cation,Inc.Economic Growth,Aggregate Output,and Standard of Living(cont.)Standard of living the total quantity and quality of goods and services that they can purchase with the currency used in their economic systemCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-28 Copyright 2015
28、Pearson Education,Inc.Gross Domestic ProductGross domestic product(GDP)refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production measure of aggregate outputCopyright 2012 Pearson Education,Inc.Publishing as Prentic
29、e Hall 1-29 Copyright 2015 Pearson Education,Inc.Gross Domestic Product(cont.)Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-30 Copyright 2015 Pearson Education,Inc.Gross National Product Gross national product(GNP)refers to the total value of all goods and services produced by a
30、 national economy within a given period regardless of where the factors of production are locatedCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-31 Copyright 2015 Pearson Education,Inc.GDP and GDP per CapitaCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-32 Copy
31、right 2015 Pearson Education,Inc.Gross Domestic Product Nominal GDP gross domestic product(GDP)measured in current dollars or with all components valued at current prices Purchasing Power Parity the principle that exchange rates are set so that the prices of similar products in different countries a
32、re about the sameCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-33 Copyright 2015 Pearson Education,Inc.World Prices of a Big MacCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-34 Copyright 2015 Pearson Education,Inc.Productivity Productivity measure of economi
33、c growth that compares how much a system produces with the resources needed to produce itCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-35 Copyright 2015 Pearson Education,Inc.Productivity(cont.)Balance of trade the economic value of all the products that a country exports minus
34、the economic value of its imported products Positive or negative balance National Debt the amount of money the government owes its creditorsCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-36 Copyright 2015 Pearson Education,Inc.Economic Stability Stability condition in which the a
35、mount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate Inflation occurs when widespread price increases occur throughout an economic systemCopyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-37 Copyright
36、2015 Pearson Education,Inc.Economic Stability(cont.)Unemployment the level of joblessness among people actively seeking work in an economic system Recession a period during which aggregate output,as measured by GDP,declines Depression a prolonged and deep recessionCopyright 2012 Pearson Education,In
37、c.Publishing as Prentice Hall 1-38 Copyright 2015 Pearson Education,Inc.Managing the U.S.Economy Fiscal Policies policies used by a government regarding how it collects and spends revenue Monetary Policies policies used by a government to control the size of its money supplyCopyright 2012 Pearson Ed
38、ucation,Inc.Publishing as Prentice Hall 1-39 Copyright 2015 Pearson Education,Inc.Managing the U.S.Economy(cont.)Stabilization Policy government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize pricesCopyright 2012 Pearson Education,Inc.Publishing as Pr
39、entice Hall 1-40 Copyright 2015 Pearson Education,Inc.Applying What Youve Learned1.Define the nature of U.S.business and identify its main goals and functions.2.Describe the external environments of business and discuss how these environments affect the success or failure of any organization.3.Descr
40、ibe the different types of global economic systems according to the means by which they control the factors of production.Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall 1-41 Copyright 2015 Pearson Education,Inc.Applying What Youve Learned(cont.)4.Show how markets,demand,and supply
41、affect resource distribution in the United States,identify the elements of private enterprise,and explain the various degrees of competition in the U.S.economic system.5.Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system.Copyright 2012 Pearson Education,Inc.Publishing as Prentice Hall Copyright 2015 Pearson Education,Inc.1-42
