1. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 1 Chapter 1: Exploring the World of Business and Economics

2. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 2 Learning Objectives 1. Discuss what you must do to be successful in the world of business. 2. Define business and identify potential risks and rewards. 3. Define economics and describe the two types of economic systems: capitalism and command economy. 4. Identify the ways to measure economic performance. 5. Examine the four different phases in the typical business cycle. 6. Outline the four types of competition. 7. Summarize the factors that affect the business environment and the challenges American businesses will encounter in the future.

3. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 3  Why Study Business? 1. For Help in Choosing a Career 2. To Be a Successful Employee 3. To Improve Your Management Skills 4. To Start Your Own Business 5. To Become a Better Informed Consumer and Investor Your Future in the Changing World of Business

4. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 4  The Organized Effort of Individuals  Satisfying Needs  Business Profit Business: A Definition

5. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 5  Capitalism Capitalism in the United States 1. Households 2. Businesses 3. Governments  Command Economies Socialism Communism Types of Economic Systems

6. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 6  The Importance of Productivity in the Global Marketplace  Important Economic Indicators That Measure a Nation’s Economy Measuring Economic Performance

7. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 7  Recession  Depression  Monetary policies  Fiscal policy  Federal deficit  National debt The Business Cycle

8. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 8  Perfect Competition 1. The Basics of Supply and Demand 2. The Equilibrium, or Market, Price  Monopolistic Competition  Oligopoly  Monopoly Types of Competition

9. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 1 | Slide 9  Early Business Development  Business Development in the 1900s  New Century: 2000 and Beyond  The Current Business Environment  The Challenges Ahead American Business Today