1. CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING ECONOMIC ENVIRONMENT OF BUSINESS nDescribe economic concepts that apply to satisfying economic wants. nDiscuss three economic systems and three economic- political systems. nSummarize five fundamental elements of capitalism. nExplain how economic growth can be promoted and measured. nList basic economic problems that exist and state what government can do to correct the problems. 33

2. © SOUTH-WESTERN EDUCATIONAL PUBLISHING SATISFYING OUR ECONOMIC WANTS nUtility nFactors of production nNatural resources nLabor nCapital goods nEntrepreneurship nCapital formation

3. © SOUTH-WESTERN EDUCATIONAL PUBLISHING ECONOMIC SYSTEMS nTypes of economic systems nMarket economy nCommand economy nMixed economy nTypes of economic-political systems nCapitalism nSocialism nCommunism

4. © SOUTH-WESTERN EDUCATIONAL PUBLISHING FUNDAMENTALS OF CAPITALISM nPrivate property nProfit nPrice setting nDemand nSupply nCompetition nIncome distribution

5. © SOUTH-WESTERN EDUCATIONAL PUBLISHING SUPPLY AND DEMAND Price Quantity Supply Demand Market Price

6. © SOUTH-WESTERN EDUCATIONAL PUBLISHING MANAGING THE ECONOMY nPromoting economic growth nMeasuring economic growth nIdentifying economic problems nCorrecting economic problems