1st week of exam 1 notes
1st week of exam 1 notes Business 198
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This 3 page Class Notes was uploaded by Alicia Condon on Monday October 5, 2015. The Class Notes belongs to Business 198 at University of Wisconsin - Oshkosh taught by Jeff Lavake in Summer 2015. Since its upload, it has received 33 views. For similar materials see Introduction to Business in Business at University of Wisconsin - Oshkosh.
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Date Created: 10/05/15
Chapter 1 Business Now A good business is any activity that provides a good or service in an effort to earn a profit Non profit orgs focuses on cause not profit profit I the final reward that comes from starting and running a business Profit revenue vs expenses Entrepreneurs ar people who take the risk of starting and operating their own business in response to the profit incentive Value is the relationship of benefit to price Factors of Production ingredients natural resources human resources capital entreprenership Business39s rely on some type of combo of these factors Most growing econs support and promote entrepreneurship Economics Frameworks of Business Why economics matters Reps the ow of resources forces that impact you business and personal life better decisionsmore the econ is financial social econ is about choices 2 big areas of economics 1 macroeconomics think of as countries or industries 2 microeconomicscompanies families individuals The means of production capitalis owned by individuals The nature of economic activity is determined by supply and demand Spectrum lt gt Capitalism china cuba market econ canada socialism planned econ communism Some are marketsindustries and some are heavily regulated 917 The competitiveness of an industry Degrees of Competition pure unlimited number of competitorsagriculture 100039s monopolisticseveral competitiorsclothing10039s oligopoly a few competitorsautos beveragesless than 20 monopolyessentially one or less companiesmicrosoft gt quot monopolistic competition is the most popular type in the USdominant market sharegt90 Free market fundamentals supply and demand how much do sellers produce How much will consumers buy At what price Interaction of Buyers and sellers impact prices entrance of competition supplythe relationship between the price and the quantity sellers are willing and able to offer for sale sellers tend to supply higher quantity as price rises supply curve graph of supply relationship the demand curve slopes downward showing that quantity demanded increases as price falls Equillibrium prices forces of supply and demand create an equillibrium price forces of supply and demand create and equillibrium price The point where supply and demand intersect equillibrium price is market price Evaluating the economy Gross Domestic ProductGDPthe total value of all final goods and services produced within a nation over a period of time now raw materials parts ingredients only final goodsno double countingin exampleyou cannot count the lumber that was used to build the house because the house is the finished product gdp is the stuff we produce not what we sell unemployment rate at least 16 year old unemployed and looking for working consumer price index under what we pay for our products we buyshopping cart loaded with same stuff every month and compare the change in price If unemployed for six plus months you arent looking for work so every 6 months peoples names come off the list reduction in unemployment means more ppl taken off list not theory but statistical fact the businss cycle is peak to peak Fiscal policy can be used to atten the business cycle outlike give 60000 when econ is low raise taxes When econ is high monetary policy controlled by federal reserve FED affects amount of money in econ Via money supply interest rates
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