Introduction To Business Tim Trimbath

Welcome  Intro to class  Attendance  By PCC Request - What is plagiarism? A Cautionary Tale

The Class  How to get an “A” (Hint – It’s EASY) Participate – 10% Do your homework – 20% Study for your exams – 40% –Exam questions come right from the book – no trickerations! Do your written class project – 20% Present your project to the class – 10%

Class Project  Part 1 (page 110)  Part 2 (page 215)  Part 3 (page 309)  Part 4 (page 409)  Part 5 (page 547)  Part 6 (page 623)

Chapter 1 Why Study This?  Why should you study business? – Help choose a career – To be a better, more successful employee – To learn how to start your own business – To be a better, wiser, consumer

What do we mean by “business”  Terms – Business – Free enterprise – Satisfaction of needs – Business profit – Stakeholder

Types of Economic Systems  Economics – how wealth is created and distributed  Factors of production – Land and Resources – Labor – Capital – Entrepreneurship

Capitalism  Maximizes Freedom  Individuals serve their own interests and help society in the process  Assumptions of Capitalism – Right to small gov’t – Right to economic freedom – Right to private property – Right to create wealth – Laissez-faire

Capitalism in US – Mixed Economy  Exhibits elements of both communism and socialism

Command Economy  Gov’t decides what goods and services are produced, how to produce them, how much, for whom they will be available and who owns the factors of production  2 major forms – Socialism and Communism

Measures of Economy  Productivity - Output per worker per hour  GDP  Inflation  Deflation  CPI  PPI

The Business Cycle  Growth  Peak  Recession  Trough  Repeat  Recession vs. Depression

Types of Competition  Perfect Competition – Theory, Supply, Demand, and Market Price  Monopolistic Competition – Lots of buyers AND sellers  Oligopoly – Few Sellers  Monopoly – One Seller – Natural, limited or legal monopolies

History of Markets in US