Business Economics Basics and Market Economy

Name: Business Economics Basics and Market Economy
Author: Dr. Michael Aubry

This course covers the basics of business economics, including scarcity, supply, and demand. It explores the structure and operation of the market economy…

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The entire world revolves around economic decisions. These principles guide every decision that we make in life. If we don't understand the principles of economics, we are doomed for failure in both business and our personal lives. In these lessons, you will learn the basics of business economics, including scarcity, supply, and demand, as well as what a market economy is and how it works. Why is economics important in business? As a business owner or leader, you are required to make decisions that will either lead to the success or demise of the business. Let's start with some examples of economic decision-making. One common goal of any business is to make a profit. This is the signal that resources are being distributed efficiently. Many companies have been successful using the economic principles of supply, demand, and scarcity analysis. An excellent example of this is Apple. There have been multiple product failures by Apple. Some of these failures include the iPhone 5C, Apple III Computer, Lisa Computer, G4 Cube, and the Newton. Over the years, Apple has tried to gauge consumer demand and they have experienced their fair share of difficulties. After seeing that these products were unable to meet sales objectives, Apple was forced to redistribute its resources. Using profit as an indicator, they focused their time on products such as the iPhone, iPad, iPod, MacBook Air, Apple Watch, and Apple TV. With this continued focus, they were able to rebound to become one of the most valuable brands in the world. Internal factors are not the only thing that guide business decisions. A product or service cannot be produced without analyzing the external marketplace. Has marketing research been done to determine if customers want a product or service? What is the demand? What does the economic environment currently look like? For example, during the 1990s, the United States was experiencing an economic boom. During that economic cycle, many companies felt that it was an appropriate time to expand their business' fixed investment based on consumer sentiment. Companies such as Burger King, McDonald's, and KFC were optimistic that consumers would go out to eat more frequently as their incomes rose and their standard of living improved. Research conducted by the US Department of Agriculture showed that fast food sales increased 25% over this 10-year period. As you can see, there are both internal and external economic factors that can affect a business. Let's take a closer look at what drives these factors, scarcity, supply, and demand.

Advanced Provider : Dr. Michael Aubry 6 Lessons · 24m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

This course covers the basics of business economics, including scarcity, supply, and demand. It explores the structure and operation of the market economy, with particular focus upon the various market structures and the competitive marketplace. By the end of this module, you will have a basic understanding of how economics impact business decisions.

What You'll Learn

Understand the basics of business economics, including scarcity, supply, and demand
Explain why economics is important in business decisions
Explore the structure and operation of the market economy
Examine various market structures and the competitive marketplace
Analyze how supply and demand interact in a market economy

Key Takeaways

Business economics covers the basics of scarcity, supply, and demand.
The course explores the structure and operation of the market economy.
Particular focus is placed on the various market structures and the competitive marketplace.
By the end of the module, learners gain a basic understanding of how economics impacts business decisions.

Frequently Asked Questions

What does this course cover?

It covers the basics of business economics, including scarcity, supply, and demand, and explores the structure and operation of the market economy, with particular focus on the various market structures and the competitive marketplace.

What will I be able to do after completing this course?

By the end of this module, you will have a basic understanding of how economics impacts business decisions, including knowing the basics of business economics, understanding supply and demand, and exploring the market economy.

What topics are included in the lessons?

The lessons cover why economics is important in business, scarcity, demand, supply, market structure, and the competitive marketplace.

Is this course suitable for beginners?

Yes, the course provides a basic understanding of business economics and covers the fundamentals of scarcity, supply, and demand.