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

1. UNDERSTANDING
THE U.S. BUSINESS
SYSTEM
Adivia – Alya – Annisa - Diva - Yustika

2. The Concept of Business and Profit

3. What Is Business?

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. Global Economic Systems

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. 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. The U.S. Economic System

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. SURPLUS
A situation which the quantity of supplied
exceeds the quantity demanded
SHORTAGE
The quantity demanded is greater than the
quantity supplied

11. Private Enterprise
A system that allows individuals to pursue their own interest without government restriction
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private property rights
freedom of choice
profits
competition

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. Evaluating Economic Systems

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. 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. 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. 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. Thank you
Any Qustions?