Title: Chapter 11 Introduction
Course: Canvas Practice Course > Section: Week 3, 06 April to 09 April

KEY CONCEPTS

Economics is the production, distribution and consumption of goods and services. A basic understanding of economics is essential if we are to be well-informed citizens. Most of the specific problems of the day have important economic aspects. An understanding of the overall operation of the economic system enables the business executive to better formulate policies. A nation’s economy is just a marketplace where people go shopping for goods and services with the best quality at the best prices they can find.

Competition has always been vital to the American economic system to create the best goods and prices. The vitality of the American economy is based on competition between producers. Producers rely on productivity to remain in business. Productivity describes how efficiently producers use their resources--people, facilities and raw materials. Producers must consistently increase productivity to remain competitive in the global market.

Today the customer exerts tremendous power over the producer. Systematically, in industry after industry, power is shifting from the people who sell to the people who buy because there are more companies competing for their attention. Globalization has increased the power of the consumer.