BUSINESS OF THE FUTURE...

SCARCITY AND THE FACTORS OF PRODUCTION

• Goods and services are limited/ and or scarce.
• Our needs/wants tend to be a lot greater than our resource supply.
• Physical capital is a better way to save money.
• The land, capital, labor used to produce services tend to be limited/scarce.
• The Entrepreneurs bring the factors of production together.

2 SECTOR CIRCULAR FLOW OF INCOME...

• According to circular flow of income in a two-sector economy, there are only two sectors.
• The household sector is the sole buyer of goods and services, (spends emtire income on goods)
• The business sector is the sole producer and supplier of goods and services.
• In a two-sector economy, production and sales are thus equal.
• The household sector receives income from business sector by providing the factors of production owned by it.

BUSINESS OWNERSHIPS?

• Private Limited Company: Usually owned by family/ or small group.
• Public Limited Company: Limited liability, wide variety of shareholders.
• Unlimited Liability: Owner is liable for all debts that bussiness has.
• Limited Liability: Owner is limited to full, paid up vales of the share capital.
• In large part, the best ownership structure for your business depends on the type of services or products it will provide.

Positive and Negative of having competition? Well the good, is there is always something to compare your prices too, driving those to your business, bad is that if you do not meet sales, there is a possibility you could be put out of business.

Supply, Demand, and Interaction? In large part, the best ownership structure for your business depends on the type of services or products it will provide.The law of supply and demand is not an actual law but it is well confirmed and understood realization that if you have a lot of one item, the price for that item should go down. At the same time you need to understand the interaction; even if you have a high supply, if the demand is also high, the price could also be high. In the world of stock investing, the law of supply and demand can contribute to explaining a stocks price at any given time. It is the base to any economic understanding.

The market is the way in which an economic activity is organized between buyers and sellers through their behavior and interaction with one another. Buyers, as a group, determine the overall demand for a particular product at various prices while sellers, as a group, determine the supply of a particular product at various prices.The interaction of buyers and sellers in the market helps to determine the market price, thereby allocating scarce goods and services efficiently. The price is taken into account when deciding how much of something to consume, and also how much to produce. The relationship between price and quantity demanded is so universal that it is called the law of demand.

So how does the outside decisions by the government impact prices and growth; price floors, price ceilings, taxes, regulations, and subsidies.A price ceiling is the maximum legal (government set) price that a seller may charge. The GOAL of a price ceiling is to LOWER the price. (The price cannot go through the ceiling.) Therefore, an effective price ceiling is set below the equilibrium (and efficient) price. We will see below that if a price ceiling is set above the equilibrium price, it will have no effect. When governments set prices, it prevent the market from reaching the equilibrium, and the allocatively efficient, price and quantity.

How business growth using the concepts of business diversification (PPC and opportunity cost). The PPF does not always have to be drawn as a curve. If the opportunity cost for producing two products is constant, then we draw the PPF as a straight line. The gradient of that line is a way of measuring the opportunity cost between two goods. The output resulting from allocating more resources to one particular good may fall. I.e. as we move down the PPF, as more resources are allocated towards Good Y, the extra output gets smaller – and more of Good X has to be given up in order to produce the extra output of Good Y. This is known as the principle of diminishing returns. Diminishing returns occurs because not all factor inputs are equally suited to producing different goods and services.
Diminishing returns occurs because not all factor inputs are equally suited to producing different goods and services

Impact of technology and productivity on growth? Changes in technology are the only source of permanent increases in productivity, but a number of transient factors can affect both true and "measured" productivity. For example, workers may work harder during periods of high demand and firms may use their capital assets more intensively by running factories for extra shifts; both factors can lead measured productivity to be too high relative to actual technological progress. Similarly, during periods of high demand, productivity can rise because firms take advantage of increasing returns to scale; the authors argue that this effect is not permanent and should be discounted when measuring long-run technical change. The strength of the latest economic expansion in the second half of 1990s has led many commentators to argue that the rapid increases in measured productivity during that period were attributable to bad measurement or to temporary factors of this type.

ADVICE PAGE?

• Choose an area of bussiness thats more of a demand.
• Figure out your top competitors around you
• Have a "blueprint" of how you'd like evrything to fall into place
• Type out a budget, and plan out your financial points,

WORKS CITED

• http://www.investopedia.com/terms/l/law-of-supply-demand.asp
• http://www.fte.org/teacher-resources/lesson-plans/rslessons/demand-supply-a...
• http://enviroliteracy.org/article.php/1310.html
• http://www.nber.org/digest/oct01/w8359.html