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WGU C201 Business Acumen Chapters 3 & 7: Economics and Organizational Structure

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WGU C201 Business Acumen Chapters 3 & 7: Economics and Organizational Structure Factors Influencing Demand ✔✔Demand is driven by price, consumer preferences, the economy, the number of buyers ... in a market, customer incomes, price of substitutes and complimentary items. Factors of Production ✔✔Natural resources, capital, human resources and entrepreneurship. What is the key factor influencing demand? ✔✔Price Demand Curve ✔✔A graph of the amount of a product buyers will purchase at different prices. Supply Curve ✔✔Shows the relationship between the price of a good or service and the quantity supplied for a given period of time. Opposite of demand curve. Slopes upwards. Equilibrium Price ✔✔The prevailing market price at which you can buy an item. Where supply and demand pricing meet on the curve. Explain a situation where a supplier would reduce prices. ✔✔The cost of inputs decrease. The cost of technology decreases. The cost of taxes decrease. There are more suppliers. Microeconomics ✔✔The study of economic behavior among individual consumers, businesses, and families whose collective behavior in the marketplace determines the quantity of goods and services demanded at different prices. Key terms: supply and demand. Macroeconomics ✔✔The study of the broader economic picture and of how an economic system maintains and allocates its resources. Monopoly ✔✔Government controls who can enter the industry. Market situation where one producer controls the supply of a good or service, and where the entry of new producers is prevented or highly restricted. Pure Competition ✔✔It's easy to get into the industry and easy to get out. There is not a large differentiation between the products in the industry or the consumers who purchase the products. Oligopoly ✔✔Oligopoly is a market structure in which a small number of firms has the large majority of market share. There are few competitors. The ease of entry into industry is somewhat difficult. The similarity of services and goods of competitors is different. Socialism ✔✔Government ownership of major industries like communications. Major industries are too important to be left in private hands. Significant government planning. Only the private sector of the economy generates profit. Government influences career decisions. Incentives are limited. Example- Canada. Healthcare is controlled by government, but citizens can open stores. Capitalism ✔✔Businesses are owned privatel [Show More]

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