Principles of Business, Marketing, and Finance Economic and Ethical Activity in a Changing World Copyright © Texas Education Agency, All rights reserved

Economic Measurements for a Changing World Gross Domestic Product-total value of goods and service produced in a country in a given year Consumer goods and services Business goods and services Government goods and services Goods and services sold to other countries Copyright © Texas Education Agency, All rights reserved 2

Economic Measurements for a Changing World Unemployment Rate Rate of Inflation -rate at which the cost of goods and services rise Standard of Living -amount of goods and services the average citizen can buy Deflation -when the supply of good is greater than the demand Copyright © Texas Education Agency, All rights reserved 3

Economic Measurements for a Changing World National Debt -total amount of money a government owes Budget Surplus -when a government’s revenue exceeds its expenditures during a one-year period Copyright © Texas Education Agency, All rights reserved 4

Basic Business Cycle ProsperityRecessionDepressionRecovery Four Phases of the Business Cycle Cycle Copyright © Texas Education Agency, All rights reserved 5

Ethics A set of moral principles by which people conduct themselves personally, socially, or professionally Businesses have a legal responsibility to do what is right for society’s welfare Business Ethics-a set of laws about how a business should conduct itself Copyright © Texas Education Agency, All rights reserved 6

Unethical Business Practices Bad for business Affects a business’s profits, customer base, and employee loyalty Sweatshops -factories that have unsafe working conditions, treat workers badly, and pay poorly Copyright © Texas Education Agency, All rights reserved 7

Important Ethical Questions Is it against the law? What if everyone did this? Am I sacrificing long-term benefits for short term gains? Copyright © Texas Education Agency, All rights reserved 8

Making Decisions on Ethical Issues Identify the ethical dilemma. Discover alternative actions. Decide who might be affected. List the probable effects of the alternatives. Select the best alternative. Copyright © Texas Education Agency, All rights reserved 9

Social Responsibility Duty to do what is best for the good of society Businesses have a responsibility to consumers, workers, and society Copyright © Texas Education Agency, All rights reserved 10

Government’s Responsibility to Customers FDA (Food and Drug Administration) FTC (Federal Trade Commission CPSC (Consumer Product Safety Commission) USDA (United States Department of Agriculture) Copyright © Texas Education Agency, All rights reserved 11

Business’ Responsibility to Employees Equal Pay Act )OSHA-division of the Department of Labor (sets and enforces work- related health and safety rules) Copyright © Texas Education Agency, All rights reserved 12

Business’ Responsibility to Society EPA (Environmental Protection Agency ) Saving energy Recycling Conflict of Interest-when a business is tempted to put profits before social welfare Copyright © Texas Education Agency, All rights reserved 13

Adapting to Current Markets Meeting the challenges of international competition Overcoming economic conditions Adjusting to changing government demands Adjusting the workforce to different economic conditions Copyright © Texas Education Agency, All rights reserved 14