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UNDERSTANDING THE U.S. BUSINESS SYSTEM, mata kuliah bisnis pengantar semester 1, Markets, Demand, and Supply, Type of Economic Systems

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  1. 1. UNDERSTANDING THE U.S. BUSINESS SYSTEM Adivia – Alya – Annisa - Diva - Yustika
  2. 2. The Concept of Business and Profit
  3. 3. What Is Business?
  4. 4. Business Is an organization that provides goods or services in order to earn profits Profits is the difference between a business’s revenues and its expenses PROFIT Owner Stakeholder Government (taxes) Charity
  5. 5. Global Economic Systems
  6. 6. Economic Systems A nation’s system for allocating its resources among its citizens. The key difference between economic system is the different ways in which they manage the factors of production. The physical and mental capabilities of people as they contribute to economic production Labor The funds needed to create and operate a business enterprise Capital Person who starts a new businessor makes the decisions that expand a small business Enterpreneurs Material supplied by nature Natural Resources factors of production
  7. 7. Type of Economic Systems Economy thar relies on a centralized government to control all or most factors production and to production and allocation decision Planned Economies Economy in which individuals control production an allocation decisions through supply and demand Market Economies Market economy that provides for private ownership of production and encourages entrepreneurship by offeing profits an an incentive Capitalism Economic system featuring characteristics of both planned market and conomies Privatization Mixed Market Economies
  8. 8. The U.S. Economic System
  9. 9. Markets, Demand, and Supply Supply The willingness and ability of producers to offer a good or service for sale Demand The willingness and ability of buyers to purchase a product (a good/service) Equilibrium The price where the quantity of goods demanded and the quantity of goods supplied are equal The law of Supply The law of Demand http://braungardt.trialectics.com Principle that buyers will purchase (demand) more of a product as its price drops and less as its price increase Principle that producers will offer (supply) more of a product as its price increase and less as its price drops
  10. 10. SURPLUS A situation which the quantity of supplied exceeds the quantity demanded SHORTAGE The quantity demanded is greater than the quantity supplied
  11. 11. Private Enterprise A system that allows individuals to pursue their own interest without government restriction 01 02 03 04 private property rights freedom of choice profits competition
  12. 12. Degrees of Competition Pure Competition Market or industry characterized by a very large number of small firms producing an identical product Monopolistic Competition Market or industry characterized by a large number of buyers and a large number of sellers trying to differentiate productd from those of competitors Oligopoly Market or industry characterized by a handful of (generally very large) sellers with the power to influence the prices of their products Monopoly Market or industry in which there is only one producer which Cn therefore set the prices of its products
  13. 13. Evaluating Economic Systems
  14. 14. Economic Goals the condition in which the money available in an economy and the goods produced in that economy remain the sameStabilty Inflation Period of widespread price increases throughout an economic system Stability’s threat Recession Depression Period characterized by decrease in employment, income, and production Particularly severe and longlasting recession Growth Increase in the amount of goods and services produced by a nation’s resources
  15. 15. Employment Full Employment Everyone who wants to work has an opportunity to do so. Unemployment The level of jobless among people actively seeking work. frictional unemployment seasonal unemployment structural unemployment cyclical unemployment
  16. 16. Measuring Economic Performance GNP : Total value of all goods and services produced by an economic system in a 1-year period GDP : Total value of all the goods and services consume by one nation in a 1- year period Gross National and Domestic product ( GNP and GDP ) Measure of economic growth that compares how much a system produces with the resources needed to produce it Productivity The difference between a country’s exports and imports Balance Of Trade Total amount that nation owes its creditors National Debt
  17. 17. Managing the U.S Economy Fiscal Policies Government economic polities centered on how the government collects and spends its revenues Monetary policies Government economic polities that focus on controlling the size of a nation’s money supply
  18. 18. Thank you Any Qustions?