Welcome to Unit 3: Economic Environment! In this unit, we will explore the fundamentals of economics and how organizations balance resources and scarcity. Economics is the study of choice given scarcity. We’ll also learn about opportunity cost and how that factors into decision making.
By the end of this unit, you should be able to:
- Explain what economics is and why it’s important
- Describe the difference between major different economic systems
- Explain the law of demand
- Explain the law of supply
- Explain market equilibrium, surplus, and shortage
- Describe how economists evaluate the health of an economy
- Identify and explain the four stages of an economy (expansion, peak, contraction, and trough), and describe their impact on business operations
In order to successfully complete this unit, you’ll need to do the following:
1. Read this Open Educational Resource (free to access): Module 2: Economic Environment¹
Please note: you do not need to complete the activities listed in this resource.
2. Watch this Crash Course in Economics video on YouTube (embedded below)2
Sources:
1Why It Matters: Role of Business. Authored by: Linda Williams and Lumen Learning. License: CC BY: Attribution
2Crash Course on YouTube: https://www.youtube.com/watch?v=3ez10ADR_gM
3CC LICENSED CONTENT, ORIGINALPowerPoints. Provided by: Lumen Learning. License: CC BY: Attribution
