Chapter 3 Overview
This chapter introduces economic theory and the economic challenges facing individuals, businesses, and governments in the global marketplace. We begin with the microeconomic concepts of supply and demand and their effect on the prices people pay for goods and services. Next we explain the various types of economic systems, along with tools for comparing and evaluating their performance. Then we examine the ways in which governments seek to manage economies to create stable business environments in their countries. The final section in the chapter looks at some of the driving economic forces currently affecting people’s lives.
Learning Objectives
- Distinguish between microeconomics and macroeconomics. Explain the factors that drive demand and supply.
- Describe each of the four different types of market structures in a private enterprise system, and compare the three major types of economic systems.
- Identify and describe the four stages of the business cycle.
- Explain how productivity, price level changes, and employment levels affect the stability of a nation’s economy.
- Discuss how monetary policy and fiscal policy are used to manage an economy’s performance.
- Describe the major global economic challenges of the 21st century.
This chapter introduces economic theory and the economic challenges facing individuals, businesses, and governments in the global marketplace. We begin with the microeconomic concepts of supply and demand and their effect on the prices people pay for goods and services. Next we explain the various types of economic systems, along with tools for comparing and evaluating their performance. Then we examine the ways in which governments seek to manage economies to create stable business environments in their countries. The final section in the chapter looks at some of the driving economic forces currently affecting people’s lives.
Learning Objectives
- Distinguish between microeconomics and macroeconomics. Explain the factors that drive demand and supply.
- Describe each of the four different types of market structures in a private enterprise system, and compare the three major types of economic systems.
- Identify and describe the four stages of the business cycle.
- Explain how productivity, price level changes, and employment levels affect the stability of a nation’s economy.
- Discuss how monetary policy and fiscal policy are used to manage an economy’s performance.
- Describe the major global economic challenges of the 21st century.
LECTURE SLIDES OF CHAPTER 3
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