(ITB ECO)

1. PART 1 UNDERSTANDING THE CONTEMPORARY BUSINESS ENVIRONMENT Copyright 2004 Prentice Hall, Inc.

2. CHAPTER 1 Understanding the Business System Copyright 2004 Prentice Hall, Inc.

5. Economic Systems Around the World An economic system is a nation’s system for allocating its resources among its citizens. Copyright 2004 Prentice Hall, Inc.

6. What Are Factors of Production? Resources used in the production of goods and services—labor, capital, entrepreneurs, physical resources and information resources Copyright 2004 Prentice Hall, Inc.

14. What Is Communism? Copyright 2004 Prentice Hall, Inc. Planned economy in which the government owns and operates all factors of production

15. What Is a Market? Copyright 2004 Prentice Hall, Inc. Mechanism for exchange between the buyers and sellers of a particular good or service

17. What Is Capitalism? Copyright 2004 Prentice Hall, Inc. Market economy that provides for private ownership of production and encourages entrepreneurship by offering profits as an incentive

18. Circular Flow in a Market Economy Copyright 2004 Prentice Hall, Inc.

20. The Economics of a Market System Copyright 2004 Prentice Hall, Inc. Understanding a country’s complex economic system is essential to understanding the environment in which a country’s businesses operate.

23. What Is a Demand and Supply Schedule? Copyright 2004 Prentice Hall, Inc. Assessment of the relationships among different levels of demand and supply at different price levels

25. What Is the Market Price (or Equilibrium Price)? Copyright 2004 Prentice Hall, Inc. Profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal

26. Copyright 2004 Prentice Hall, Inc.

30. Degrees of Competition Copyright 2004 Prentice Hall, Inc.

31. A Short History of Evolution Business in the Western World The landscape of business in the western world has evolved over the course of many decades. Copyright 2004 Prentice Hall, Inc.

32. The Factory System and the Industrial Revolution Major mid-18 th century change in production characterized by a shift to the factory system, mass production and the specialization of labor Copyright 2004 Prentice Hall, Inc.

33. Laissez-Faire and the Entrepreneurial Era Period during the 19 th century in which improvements in the U.S. banking system and the nation’s infrastructure and the rise of the entrepreneur on a grand scale were hallmarks Copyright 2004 Prentice Hall, Inc.

34. The Production Era Period during the early 20 th century in which U.S. business focused primarily on improving productivity and manufacturing efficiency Copyright 2004 Prentice Hall, Inc.

35. The Marketing Era Post-World War II period in which production continued to increase, technology advanced and the standard of living rose Copyright 2004 Prentice Hall, Inc.

36. What Is the Marketing Concept? Idea that a business must focus on identifying and satisfying consumer wants in order to be profitable Copyright 2004 Prentice Hall, Inc.

37. The Global Era Period throughout the 1980s in which the continuation of technological advances in production, computer technology, information systems and communications capabilities was experienced Copyright 2004 Prentice Hall, Inc.