Chapter 3Economic Indicators

Economic Indicators

Measure economic performance

Like RBIs, batting averages, and on base percentages measure baseball players.

Gross Domestic Product (GDP)

The total value of the goods and services produced in a country in a given year is called its gross domestic product or the (GDP).

What’s included in GDP

Consumer goods and services Business goods and services Government goods and services Goods and services sold to other

countries

Standard of Living

The amount of goods or services the average citizen can buy.

Do you think the United States has a high standard of living or low standard of living compared to other countries?

Unemployment Rate

Measures number of people who are able to work, but don’t have a job.

What is the current unemployment rate for › United States› Massachusetts

Rate of Inflation

General increase in the cost of goods and services

How does this work?› People are employed and have more money to

spend› Demand for goods go up› Producers raise their prices› Workers want more money to survive› Prices increase to pay higher wages› Etc…..

Deflation works opposite

National Debt

The amount of money a government owes is its national debt.

What is the United States national debt?

Chapter 4ETHICS

What are ethics?

Set of principles by which people conduct themselves personally, socially, or professionally.

So what do you think Business Ethics are?

Set of guidelines about how a business should conduct itself.

For a business to be successful, it must operate legally, ethically, and humanely.

Triangle Shirtwaist Factory

New York City March 26, 1911 146 workers were killed in a fire due to

inadequate fire escapes and exit doors Sweatshop – unsafe working conditions

OSHA

Occupational Safety and Health Administration

Government agency Sets and enforces work-related health

and safety rules.

Others

FDA – Food and Drug Administration FCC – Federal Communications

Commission

Who watches businesses? Usually themselves Code of ethics – guidelines for

maintaining ethics in the workplace

Examples of bad business ethics?

› Violate government regulations –

› Violate company policy –

› Treat employees bad High turnover rates

› No legal violation – what happens?

Ethical Questions?

Is it against the law? Does it violate company or professional

policies? What if everyone did this? How would I feel if someone did this to

me? Am I sacrificing long-term benefits for

short-term gains?

Social Responsibilities

Duty to do what is best for the good of society

Duties to› Customers› Employees› Society

Customers

Provide safe products at a reasonable price

Conflict of Interest – put profits before social welfare› Example?

Fair competition› Monopoly – control market for product or

service Example?

Employees

Create jobs Safe working conditions Equal treatment Fair pay

› Equal Pay Act 1964 Men and women be paid same for equal

work› The Americans with Disabilities Act

Society

Environmental responsibility› Reduce pollution› Environmental Protection Agency –

government agency Examples:

› Buying recycled paper› Emissions of plants

Toyota

Surprise! Hopefully you have gotten this far…..

I would like you to think about a company that you would like to research and find out what type of social responsibility they participate in. Most companies do, so you should have a lot to select from.

Surprise two…..we are going to be working on the yearbook in class…this way everyone will have input on the yearbook! We will discuss more next time we are together.