Introduction to Business Chapter 2 Economic Systems Essential Question: How do we allocate the resources to fulfill needs and satisfy wants?

Standards Addressed: 1.1 Business Communications (C): Students will understand communications as applied to personal and professional situations. They will demonstrate competency by selecting and using appropriate forms of communications in a variety of situations. 1.1.7 Systems–use systems thinking to discuss the impact of cultural, organizational, technological and behavioral characteristics on the selection of communication strategies and methods. 1.4 Economics and Financial Concepts (C): Students will understand the impact of global and domestic businesses, financial concepts, and integrated business models. They will demonstrate competency by using appropriate technology and other resources to solve business problems. 1.4.3 Economic Culture–explain how culture affects economic practice and business ethics 1.4.4 Economic Systems–describe a variety of economic systems

Chapter Objectives: List the three economic questions that must be answered by every society. Describe the three types of economic systems. Identify five features of our market economy. Explain why economies are mixed systems. Explain why market economies are becoming common around the world.

Key economic questions p.17 Every society must answer the questions: what to produce? how to produce it? for whom to produce?

Types of economic systems p. 18 There are three types of economic systems: custom-based. An economic system in which goods are produced the way they have always been produced. directed or controlled. An economy in which resources are owned and controlled by the government. market. An economy in which individuals are free to engage in business transactions with buyers who are able and willing to buy and sellers supply goods and services from which they earn a profit.

Our economic system p.21 capitalism (free or private enterprise system) is an economic system in which most economic resources are privately owned and the decisions about production are largely made by free or voluntary exchange in the market. The five important figures of our market economy are: private enterprise - the right of the individual to choose whether to own a business, what business to enter, and what to produce with only limited government intervention. private property – the right to own, use or dispose of things of value. profit - money left from sales after subtracting the cost of operating the business. competition - the rivalry among businesses in selling to buyers. freedom of choice or voluntary exchange – buyers and sellers make their own economic decisions to determine what the price will be for goods and services produced and sold.

Mixed economic systems p. 25 Economies are complex and do not fall easily into one category. The United States has some government regulation of business and government operated businesses. (Post Office, Amtrak, General Motors, public commuter rail and transportation systems, city water and utilities, etc..)

Emerging market economies p. 25 Market economies have replaced most controlled economies because of the success of market economies around the world.

Assignments Do Now Thursday--Calculate Business Data p.28 #35 Friday--Calculate Business Data p.28 #37 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Workshop Discussion Communicate Business Concepts questions 12-19 p. 26. Discuss questions with your group and write a brief answer to questions

Homework Define Key Terms Develop your Business Language p. 127. Answer Review your reading questions 1-11 p.26. Section Two of The Resume Handbook for High School Students.