1. Chapter 3 Economic Indicators

2. Economic Indicators Measure economic performance Like RBIs, batting averages, and on base percentages measure baseball players.

3. Gross Domestic Product (GDP) The total value of the goods and services produced in a country in a given year is called its gross domestic product or the (GDP).

4. What’s included in GDP Consumer goods and services Business goods and services Government goods and services Goods and services sold to other countries

5. Standard of Living The amount of goods or services the average citizen can buy. Do you think the United States has a high standard of living or low standard of living compared to other countries?

6. Unemployment Rate Measures number of people who are able to work, but don’t have a job. What is the current unemployment rate for United States Massachusetts

7. Rate of Inflation General increase in the cost of goods and services How does this work? People are employed and have more money to spend Demand for goods go up Producers raise their prices Workers want more money to survive Prices increase to pay higher wages Etc….. Deflation works opposite

8. National Debt The amount of money a government owes is its national debt. What is the United States national debt?

9. Chapter 4 ETHICS

10. What are ethics? Set of principles by which people conduct themselves personally, socially, or professionally.

11. So what do you think Business Ethics are? Set of guidelines about how a business should conduct itself. For a business to be successful, it must operate legally, ethically, and humanely.

12. Triangle Shirtwaist Factory New York City March 26, 1911 146 workers were killed in a fire due to inadequate fire escapes and exit doors Sweatshop – unsafe working conditions

13. OSHA Occupational Safety and Health Administration Government agency Sets and enforces work-related health and safety rules.

14. Others FDA – Food and Drug Administration FCC – Federal Communications Commission

15. Who watches businesses? Usually themselves Code of ethics – guidelines for maintaining ethics in the workplace

16. Examples of bad business ethics? Violate government regulations – Violate company policy – Treat employees bad High turnover rates No legal violation – what happens?

17. Ethical Questions? Is it against the law? Does it violate company or professional policies? What if everyone did this? How would I feel if someone did this to me? Am I sacrificing long-term benefits for short-term gains?

18. Social Responsibilities Duty to do what is best for the good of society Duties to Customers Employees Society

19. Customers Provide safe products at a reasonable price Conflict of Interest – put profits before social welfare Example? Fair competition Monopoly – control market for product or service Example?

20. Employees Create jobs Safe working conditions Equal treatment Fair pay Equal Pay Act 1964 Men and women be paid same for equal work The Americans with Disabilities Act

21. Society Environmental responsibility Reduce pollution Environmental Protection Agency – government agency Examples: Buying recycled paper Emissions of plants Toyota

22. Surprise! Hopefully you have gotten this far….. I would like you to think about a company that you would like to research and find out what type of social responsibility they participate in. Most companies do, so you should have a lot to select from. Surprise two…..we are going to be working on the yearbook in class…this way everyone will have input on the yearbook! We will discuss more next time we are together.