MGMT 1 Lecture Notes - Lecture 3: Stagflation, Disinflation, Equilibrium Point
29 Sep 2016
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Mgmt 1 - lecture 3 - economics & business. Economics - how a country makes its decisions. Malthus believed that population should remain small to accommodate for the scarce resources. On the other hand, argument for large populations state that you need a growing population that is educated. Adam smith said that the marketplace will grow the economy regardless of population size. Supply - the quantities of products businesses are willing to sell at different prices. Demand - the quantities of products consumers are willing to buy. Equilibrium - point where both slopes cross each other, determines the price of the product. Factors of production and distribution are privately owned and operated for profit. Owners decide what and how much to produce. Right to own a business and keep profits. Perfect competition: no individual manufacturer is big enough to set the prices, products are identical. Does not exist in the real world.
