Introduction to Business - PowerPoint PPT Presentation

Loading...

PPT – Introduction to Business PowerPoint presentation | free to download - id: 733711-NGIyO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Introduction to Business

Description:

Chapter 2 Economic Resources and Systems pp. 18-33 – PowerPoint PPT presentation

Number of Views:131
Avg rating:3.0/5.0
Slides: 53
Provided by: Glencoe204
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Introduction to Business


1
Chapter 2 Economic Resources and Systems
pp. 18-33
2
Learning Objectives
After completing this chapter, youll be able to
  1. Define scarcity.
  1. List the four factors of production.

continued
3
Learning Objectives
After completing this chapter, youll be able to
  1. Identify the differences between market and
    command economies.
  1. Explain why most countries prefer a mixed
    economy.

4
Why Its Important
Understanding economic resources and economic
systems is essential to lessening economic
problems.
5
Key Words
scarcity factors of production natural
resources human resources capital
resources entrepreneurial resources economics
continued
6
Key Words
market economy demand supply equilibrium
price command economy mixed economy
7
Factors of Production
A shortage of resources is called scarcity.
A basic economic problem for any society is how
to manage its resources.
8
Factors of Production
To meet the wants and needs of its people, a
society must produce goods and services.
The means to produce them are called economic
resources, or factors of production.
9
Natural Resources
The raw materials found in nature are called
natural resources.
Natural resources become factors of production
when we use them to produce goods.
10
Natural Resources
The economy of many countries is based on their
natural resources.
11
Natural Resources
Some resources, like wheat and cattle, are
renewable. They can be reproduced.
Other resources are limited, or nonrenewable,
like coal, iron, and oil.
12
Natural Resources
The amount of natural resources available to a
society has a direct effect on its economy.
13
Human Resources
The knowledge, efforts, and skills people bring
to their work are called human resources, or
labor.
14
Human Resources
Labor can be skilled or unskilled, physical or
intellectual.
One of the biggest problems facing many nations
today is not a shortage of labor but a shortage
of skilled labor.
15
Capital Resources
Capital resources are the things used to produce
goods and services, like buildings, materials,
and equipment.
16
Capital Resources
As the wants and needs of people change, so do
the needs for capital resources.
17
Entrepreneurial Resources
Meeting the changing wants and needs of people
requires entrepreneurial resources.
18
Entrepreneurial Resources
Entrepreneurs improve on ways to use resources,
or create and produce new ones.
A key to dealing with scarcity is to develop new
resources and technologies.
19
Making Decisions About Production
No society has enough productive resources
available to produce everything people want.
Every society must, therefore, make choices.
20
Basic Economic Questions
Rules and regulations determine choices.
21
Basic Economic Questions
A society makes economic choices by answering
three economic questions
  • What should be produced?
  • How should it be produced?
  • Who should share in what is
  • produced?

22
What Should Be Produced?
Deciding to use a resource for one purpose means
giving up the opportunity to use it for something
else.
23
How Should It Be Produced?
When a society decides what to produce, it must
also address other types of questions, such as
what methods will be used, how many people will
work on the production, and what will be the
quality of the items produced?
24
Who Should Share in What Is Produced?
This question focuses on the concept that people
cant get everything that they want because
society doesnt have enough resources.
25
Who Should Share in What Is Produced?
In most societies, people can have as many goods
and services as they can afford to buy based on
the income they receive.
26
Types of Economic Systems
Economics studies how society chooses to use
resources to produce and distribute goods and
services for peoples consumption.
27
Types of Economic Systems
To use its limited resources effectively, every
nation needs an economic system.
28
Types of Economic Systems
The primary goal of an economic system is to
provide people with a minimum standard of living,
or quality of life.
29
Types of Economic Systems
The two basic and opposing economic systems that
have been developed are
  • Market economy
  • Command economy

30
Market Economy
In a market economy economic decisions are made
in the marketplace according to the laws of
supply and demand.
31
Market Economy The Market and Prices
Price is the amount of money given or asked for
when goods and services are bought or sold.
32
Market Economy The Market and Prices
Demand is the amount or quantity of goods and
services that consumers are willing to buy at
various prices.
33
Market Economy The Market and Prices
The higher the price, the fewer consumers will
buy an item.
The lower the price, the more consumers will buy
an item.
34
Market Economy The Market and Prices
Supply is the amount of goods and services that
producers will provide at various prices.
35
Market Economy The Market and Prices
Demand and supply work together.
When the quantity demanded and the quantity
supplied meet, the price is called the
equilibrium price.
36
Figure 2.2
VISUALIZING DEMAND AND SUPPLY
Remember these two points (1) The demand curve
always falls left to right on a graph, and (2)
the supply curve always rises from left to right
on the graph.
How many CDs will be demanded at 16 a piece?
How many CDs will be supplied at 18 a piece?
37
Market Economy The Market and Prices
Capitalism, or private enterprise, is a market
economy system.
In a capitalist system, resources are privately
owned.
38
Market Economy The Market and Prices
In a capitalist system, the primary role of
government is to support the marketplace by
removing obstacles such as trade barriers.
39
Market Economy The Markets Motivations
A market economy offers incentives, such as
competition and the profit motive, to produce
more.
40
Market Economy The Markets Motivations
The profit motive is the reward for taking a risk
that encourages people to start businesses.
41
Market Economy The Markets Motivations
A market economy provides the individual with the
freedom to choose from many different competing
products, and the freedom to start a business or
choose a career.
42
Market Economy The Markets Motivations
The problem with a market economy is that those
who do not have the wanted job skills do not get
an income.
43
Market Economy The Markets Motivations
Another problem in a market economy is that
sometimes one or two businesses control the
market, thus leading to higher prices and lower
quality products.
44
Command Economy
In a command economy a central authority makes
the key economic decisions.
A command economy is also called a planned or
managed economy.
45
Command Economy
There are two types of command economies.
In a strong command economy, such as communism,
the state makes all the economic decisions.
46
Command Economy
In a moderate command economy, also called
socialism, there is some form of private
enterprise.
47
Command Economy
The primary advantage of a command economy is
that it guarantees everyone an equal standard of
living.
48
Command Economy
There are some disadvantages to a command
economy.
Since the state provides all goods and services
in a strong command economy, there is little
choice of what to buy.
49
Command Economy
Another disadvantage to the command economy is
that there is no incentive for entrepreneurship
when you cant run your own business.
50
Mixed Economy
Most nations have a mixed economy, a combination
of a market and command economy.
The state takes care of peoples needs while the
marketplace takes care of peoples wants.
51
Graphic Organizer
Graphic Organizer
Basic Economic Questions
MARKET ECONOMY
Economic decisions are made in the
marketplace according to the laws of supply and
demand.
MIXED ECONOMY
What should be produced?
How should it be produced?
Who should share in what is produced?
Combination market and command economy.
COMMAND ECONOMY
Government makes all key economic decisions.
52
End of Chapter 2 Economic Resources and Systems
pp. 18-33
About PowerShow.com