Chapter 2 Study Guide - Economics

**CHAPTER 2 -- STUDY GUIDE** **Economic Challenges Facing Business Today** *Instructions: Fill in the Study Guide as you read the chapter and in class.* **Chapter 2 Overview** Economics: Microeconomics: Macroeconomics: **Microeconomics: The Forces of Demand and Supply** Demand: Example duri...

**CHAPTER 2 -- STUDY GUIDE** **Economic Challenges Facing Business Today** *Instructions: Fill in the Study Guide as you read the chapter and in class.* **Chapter 2 Overview** Economics: Microeconomics: Macroeconomics: **Microeconomics: The Forces of Demand and Supply** Demand: Example during COVID: Supply: How Price and Demand Interact: Shifts in the demand curve: 1. 2. 3. 4. What happens when demand is underestimated? 1. 2. 3. 4. Factors affecting supply: 1. 2. How demand and supply interact: Hula-Hoop example: [Activity: Fingerling Case Study] Part 1: - Considering demand and supply graphs, what would happen to the market price for Fingerlings when they became "the" toy. - What happens when Walmart caps the price at \$15? - If prices can't increase, what happens? - What are some ways that WowWee can address this? Part 2: Impact of the Bots - What did the presence of bot-buying do to the market for Fingerlings? - What should the makers of the Fingerling do? - Can you think of other examples of shortages leading to black markets or substitute products? **Macroeconomics: Issues for the Entire Economy** Three economies: 1. 2. 3. Capitalism/Private Enterprise: Four types of competition in private enterprise: 1. 2. 3. 4. Planned economies: Mixed market economies: **Evaluating Economic Performance** The business cycle stages: 1. 2. 3. 4. Ways to measure the economy Productivity and the nation's GDP: Price-level changes: Employment levels: **Managing the Economy's Performance** Monetary policy: Fiscal policy: