, Ferrell et al: Business:
Instructor’s Manual—Chapter 2
A Changing World 8ce
Instructor Solution Manual For
Business A Changing World 8CE O. C. Ferrell, Geoffrey A. Hirt, Linda Ferrell, Suzanne
Chapter 1-14
Chapter 1: The Dynamics of Business and Economics
SUMMARY
LEARNING OBJECTIVES
KEY TERMS AND DEFINITIONS
CONTENT OUTLINE
BOXED TEXT DISCUSSION QUESTIONS WITH SUGGESTED ANSWERS
Enter the World of Business: Wes Hall: Making Big Things Happen
Going Green: Hitting the Brakes on EVs
Responding to Business Challenges: Taylor Swift Fights Scalpers
Business Disruption: Competition is Brewing in Kombucha Market
Entrepreneurship in Action: Threads' Strategic Pivot
So You Want a Job in the Business World
END OF CHAPTER TEACHING RESOURCES
Team Exercise
Build Your Business Plan: The Dynamics of Business and Economics
See for Yourself Case: Tesla: More Than a Car Company
SUPPLEMENTAL TEACHING RESOURCES
Check Your Progress
Get Involved
Build Your Skills: The Forces of Supply and Demand
Solve the Dilemma: Mrs. Acres Homemade Pies
CONNECT ACTIVITIES
GrubHub Excels Amidst the Changing Business Environment
Uber and Its Effect on the Sharing Economy
iSeeIt! Video Case: Supply and Demand
BONUS TEACHING RESOURCES
Additional Discussion Questions
Quiz
Controversial Issue
, Ferrell et al: Business:
Instructor’s Manual—Chapter 2
A Changing World 8ce
Term Paper or Project Topic
Guest Speaker Suggestions
Teaching Suggestions
SUMMARY
We begin our study of business in this chapter by examining the fundamentals of business and
economics. First, we introduce the nature of business, including its goals, activities, and participants.
Next, we describe the basics of economics and apply them to the Canadian economy. Finally, we
establish a framework for studying business in this text.
LEARNING OBJECTIVES
LO 1-1 Define basic concepts such as business, product, and profit.
LO 1-2 Identify the main participants and activities of business.
LO 1-3 Define economics and compare the four types of economic systems.
LO 1-4 Describe the role of supply, demand, and competition in a free enterprise system.
LO 1-5 Specify why and how the health of the economy is measured.
LO 1-6 Outline the evolution of the Canadian economy.
LO 1-7 Explain the role of government, the entrepreneur, and ethics and social responsibility in
the economy.
LO 1-8 Explain why studying business is important
KEY TERMS AND DEFINITIONS
artificial intelligence (AI) Relates to machine (computer) learning that is able to perform activities and
tasks that usually require human intelligence.
big data Large volumes of structured and unstructured data that are transmitted at
very fast speeds.
blockchain A decentralized record-keeping technology that stores linked.
budget deficit The condition in which a nation spends more than it takes in from taxes.
budget surplus The condition in which a nation spends less than it takes in from taxes.
business Individuals or organizations who try to earn a profit by providing products
that satisfy people’s needs.
capitalism (free An economic system in which individuals own and operate the majority of
enterprise) businesses that provide goods and services.
, Ferrell et al: Business:
Instructor’s Manual—Chapter 2
A Changing World 8ce
communism First described by Karl Marx as a society in which the people, without regard
to class, own all the nation’s resources.
competition The rivalry among businesses for consumers’ dollars.
demand The number of goods and services that consumers are willing to buy at
different prices at a specific time.
depression A condition of the economy in which unemployment is very high, consumer
spending is low, and business output is sharply reduced.
drones unmanned aerial devices, can be programed with AI to perform human tasks
such as delivering products or collecting environmental data and imagery.
economic contraction A slowdown of the economy characterized by a decline in spending and
during which businesses cut back on production and lay off workers.
economic expansion The situation that occurs when an economy is growing and people are
spending more money; their purchases stimulate the production of goods
and services, which in turn stimulates employment.
economic system A description of how a particular society distributes its resources to produce
goods and services.
economics The study of how resources are distributed for the production of goods and
services within a social system.
entrepreneur An individual who risks their wealth, time, and effort to develop for profit an
innovative product or way of doing something.
entrepreneurship The process of creating and managing a business to achieve desired
objectives.
equilibrium price The price at which the number of products that businesses are willing to
supply equals the amount of products that consumers are willing to buy at a
specific point in time.
financial resources The funds used to acquire the natural and human resources needed to
(capital) provide products; also called capital.
free market system Pure capitalism, in which all economic decisions are made without
government intervention.
gross domestic product The sum of all goods and services produced in a country during a year.
(GDP)
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