MGMT 100 Lecture Notes - Lecture 2: Market Price, Mixed Economy, Perfect Competition
10 Apr 2017
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Chapter 2: how economic issues effect business. Explain what capitalism is and how free markets work. Compare the benefits and negative consequences of socialism and communism. Illustrate the significance of key economic indicators and the business cycle. 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. o. Macroeconomics: looks at the operation of a nation"s economy as a whole. Microeconomics: looks at the behaviour of people and organizations in particular markets. Resource development: the study of how to increase resources and the creation of the conditions that will make better use of those resources. Invisible hand: a phrase coined by adam smith to describe the process that turns self-directed gain into social and economic benefits for all. The economic system that has led to wealth creation in much of the world is known as capitalism.
