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    2 views18 pages

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    anasibnomar

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 18

    1

    WE ARE GOING TO LEARN ABOUT…

    How Economic Conditions Affect Businesses:


     What Is Economics?
     Adam Smith and the Creation of Wealth
     How Businesses Benefit the Community
     The Business Cycle

    2
    UPON COMPLETION OF THIS CHAPTER, YOU WILL BE ABLE
    TO:

    EXPLAIN BASIC DESCRIBE THE


    ECONOMICS. BUSINESS CYCLE.

    3
    HTTPS://WWW.YOUTUBE.COM/WATCH?V=DVTNMSMUO14

    4
    HOW ECONOMIC CONDITIONS AFFECT BUSINESSES

     Economics: The study of how society chooses to employ resources to produce goods
    and services and distribute them for consumption among various competing groups
    and individuals.
     Macroeconomics: The part of economics study that looks at the operation of a
    nation’s economy.
     Microeconomics: The part of economics study that looks at the behavior of people
    and organizations in particular markets.

    5
    New energy sources New ways of growing New ways of creating
    foods goods and
    services
    Hydrogen fuel for Hydroponics. Mariculture- Raising
    autos. fish in pens
    Nanotechnology-New
    ways of creating
    needed goods and
    services.

    HOW ECONOMIC CONDITIONS


    AFFECT BUSINESSES
    EXAMPLES OF WAYS TO INCREASE RESOURCES

    6
    The Secret to Creating a Wealthy Economy

    • Malthus believed that if the rich had most of the


    wealth and the poor had most of the population, HOW
    resources would run out. ECONOMIC
    • This belief led the writer Thomas Carlyle to call
    CONDITIONS
    economics “The Dismal Science.” AFFECT
    BUSINESSES
    • Neo-Malthusians believe there are too many people
    in the world and believe the answer is radical7
    birth control.
    The Secret to Creating a Wealthy Economy

    HOW
    ECONOMIC
    CONDITIONS
    AFFECT
    BUSINESSES
    8
    HOW ECONOMIC CONDITIONS AFFECT BUSINESSES

    Adam Smith and the Creation of Wealth


     Creating more resources so that everyone could become wealthier.
     Freedom is vital to the survival of any economy, especially the freedom to own land or
    property and to keep the profits from working the land or running a business.
     People will work long and hard if they have incentives for doing so—that is, if they
    know they’ll be rewarded.
     As a result of those efforts, the economy would prosper, with plenty of food and all
    kinds of products available to everyone.

    9
    HOW ECONOMIC CONDITIONS AFFECT BUSINESSES

    How Businesses Benefit the Community


     Invisible Hand: A phrase coined by Adam Smith to
    describe the process that turns self-directed gain into social
    and economic benefits for all.
     How do people working in their own self-interest produce
    goods, services, and wealth for others?
     It is important for businesses to be ethical as well as
    generous.
     Unethical practices undermine the whole economic system.

    10
     Business Cycles: The periodic rises and falls that occur
    in economies over time.
     Economist Joseph Schumpeter identified the four phases
    of long-term business cycles as boom–recession–
    depression–recovery:
    THE BUSINESS 1. An economic boom is just what it sounds like—business is
    CYCLE booming.
    2. Recession is two or more consecutive quarters of decline in
    the GDP.
    3. A depression is a severe recession, usually accompanied by
    deflation.
    4. A recovery occurs when the economy stabilizes and starts to
    grow. This eventually leads to an economic boom, starting the
    cycle all over again.
    11
    THE BUSINESS CYCLE

    12
    TOPICS NEED TO BE NOTED

     Fiscal Policy  Demand


     Monetary Policy  Equilibrium Point
     Capitalism  Perfect Competition
     Socialism  Monopolistic Competition
     Communism  Oligopoly
     Mixed Economy  Monopoly
     Supply

    13
    14
    15

    MARKET
    STRUCTURE
    16

    EQUILIBRIUM
    POINT
    MARKET
    ECONOMY

    17
    THANK YOU

    18

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