Chapter 3.2<br />The Economy and Marketing<br />
What have you heard about our ‘economy’ lately?<br />
Economic Measurements<br />A healthy economy has 3 goals<br />Increase productivity<br />Decrease unemployment<br />Mainta...
Productivity<br />Is output per worker measure over specific time period<br />Business cans increase productivity by<br />...
Gross Domestic Product (GDP)<br />Output of goods and services produced by labor and property <br />Made up of:<br />Gov’t...
Standard of Living<br />Measurement of the amount and quality of goods and services that a nation’s people have<br />Refle...
Inflation Rate<br />Refers to rising prices (low = 1-5% per year is good) <br />Money looses value when inflation gets too...
Unemployment Rate<br />All nations chart this<br />The higher the unemployment rate the greater the chance of economic slo...
Recession vs. Depression<br />Depression<br />Recession<br />Period of prolonged recession<br />Nearly impossible to find ...
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The economy and marketing

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The economy and marketing

  1. 1. Chapter 3.2<br />The Economy and Marketing<br />
  2. 2. What have you heard about our ‘economy’ lately?<br />
  3. 3. Economic Measurements<br />A healthy economy has 3 goals<br />Increase productivity<br />Decrease unemployment<br />Maintain stable prices<br />Nations routinely use measurements to determine their economic strength<br />
  4. 4. Productivity<br />Is output per worker measure over specific time period<br />Business cans increase productivity by<br />Investing (in new equipment or facilities)<br />Provide employee training<br />Reduce # of workforce and increase responsibilities<br />*specialization & division of <br /> labor are key <br />(think assembly line)*<br />
  5. 5. Gross Domestic Product (GDP)<br />Output of goods and services produced by labor and property <br />Made up of:<br />Gov’t spending<br />Personal spending<br />Net exports of goods and services<br />Change in business inventories<br />
  6. 6. Standard of Living<br />Measurement of the amount and quality of goods and services that a nation’s people have<br />Reflects quality of life<br />
  7. 7. Inflation Rate<br />Refers to rising prices (low = 1-5% per year is good) <br />Money looses value when inflation gets too high<br />Gov’t tries to control this<br />2 Measures: <br />Consumer Price Index (CPI) : <br />measures change in price over period of time for some 400 retail goods used (“cost of living index”)<br />Producer Price Index (PPI): <br />Measures wholesale price levels<br />
  8. 8. Unemployment Rate<br />All nations chart this<br />The higher the unemployment rate the greater the chance of economic slowdown<br />
  9. 9. Recession vs. Depression<br />Depression<br />Recession<br />Period of prolonged recession<br />Nearly impossible to find a job<br />Businesses forced to shut down<br />Low spending<br />Results in poverty<br />Period of economic slowdown<br />Lasts 2 quarters or 6 months<br />Consumers spend less $<br />Companies reduce workforce<br />Future plans for spending are put on hold<br />

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