Chapter 1 Exploring the World of Business and Economics

Open Ended

What does it mean to you to be successful in today’s business world?

Open Ended

WHICH TWO LEARNING OBJECTIVES MOST INTEREST YOU?

1-1 Discuss what you must do to be successful in today’s business world.

1-2 Identify the potential risks and rewards of business.

1-3 Describe the two types of economic systems: capitalism and command economy.

1-4 Identify the ways to measure economic performance.

1-5 Examine the different phases in the typical business cycle.

1-6 Outline the four types of competition.

1-7 Summarize the development of American business and the challenges that businesses and society will encounter in the future.

Open Ended

Explain how studying business can help you become a better informed consumer and investor.

Poll

Polling Activity 1

Which career do you think will be the most in demand in the next 10 years?

• Motion picture projectionists

• Wind turbine service technicians

• Ushers, lobby attendants, and ticket

• Nurse practitioners

• Solar photovoltaic installers

Multiple Choice

Which of the following is NOT one of the four main types of resources that businesses organize to produce goods and services?

• Material resources

• Human resources

• Technological resources

• Financial resources

Multiple Choice

Which of the following are examples of service only businesses?

• H&R Block

• Intel

• Sony Corporation

• Amazon

Open Ended

What is the relationship between sales revenue, expenses, and profit as depicted in the diagram?

Multiple Choice

Which of the following best describes the difference between microeconomics and macroeconomics?

• Microeconomics studies the decisions made by individuals and businesses, while macroeconomics studies the national and global economy.

• Microeconomics studies the national economy, while macroeconomics studies individual businesses.

• Microeconomics focuses on government policies, while macroeconomics focuses on private enterprises.

• Microeconomics is about wealth distribution, while macroeconomics is about wealth creation.

Open Ended

According to Adam Smith, what is the role of the 'invisible hand' in a capitalist economy?

Multiple Choice

Which of the following is NOT a basic assumption of Adam Smith’s Laissez-Faire Capitalism?

• Right to create wealth

• Right to own private property and resources

• Right to government control of all resources

• Right to economic freedom and freedom to compete

Multiple Choice

Which three groups interact to answer the four basic economic questions in a mixed economy?

• Households, Businesses, Governments

• Consumers, Producers, Investors

• Workers, Entrepreneurs, Regulators

• Citizens, Corporations, Politicians

Multiple Select

Which of the following are examples of command economies? (Select all that apply)

• Socialism

• Communism

• Capitalism

• Mixed economy

Multiple Choice

An economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production is known as…

• A mixed economy

• A command economy

• A market economy

• A laissez-faire economy

Multiple Choice

Gross domestic product (GDP) is the total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period, usually a ___ period.

• year
• month

• 5-year

• 6 month

Open Ended

Discussion Activity

Is gross domestic product a reliable indicator of a nation’s economic health?

What might be a better indicator?

Is gross domestic product a reliable indicator of a nation’s economic health?

Why or why not?bus

Open Ended

Sustainability*: The ability to create and maintain conditions under which present and future generations can exist in productive harmony, and permit fulfilling the social, economic, and other requirements of future and present generations

Why must business now understand the need for sustainability along with generating a profit?