BMGT 110 Chapter Notes - Chapter 2: Core Inflation, Gross Domestic Product, Business Cycle

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 110
• Professor: All

Document Summary

Chapter 2: understanding economics and how it afects business. Economics promote/hinder business growth, wealth creaion, quality of life. Us success due to economic and social climate to operate business freely. Economics=study of society using resources to make goods & distribute among groups. Macro = operaion of a naion"s economy as a whole. Micro = behavior of people and organizaions in markets for paricular product/service. Resource development=study how to increase resources and make beter use of them. Thomas malthus argued w/ wealth concentrated to few people w/ many peasants. ~there would be too many peasants and not enough food/resources for them. Neo-malthusian=followers of malthus, sill believe too many followers. Adam smith believed freedom vital to survival of economy. People will work long & hard w/ incenives to do so ex. Invisible hand=process that turns self-directed gain into social/economic beneits for all. Businesspeople no gov decided what produce, where made, pay for workers etc.