Transcript Electrode Placement for Chest Leads, V1 to V6

C H A P T E R 2
Managing Resources
Chapter 2
Being a Manager Means
Managing Resources
• Money
• Goods and services
• People
Managing Requires an Understanding
of Basic Economics
The study of markets:
• Production
• Distribution
• Consumption
Two Levels of Economic
Understanding
• Microeconomics
– Organizational economies
• Macroeconomics
– National economies
– Global economies
Macroeconomic Theorists
• Adam Smith
• Karl Marx
• John Maynard Keynes
Smith’s Laissez-Faire
Economic Theory
• The wealth of nations is created by
specialization in manufacturing.
• Government’s job is to help business by
leaving it alone.
• Smith’s theory is the basis for American
capitalism.
Marx’s Economic Theory
• Capitalism is inherently unfair to workers.
• Government needs to manage fairness by
owning all manufacturing.
• Marx’s theory is the basis for communism.
Keynes’ Economic Theory
• Managed capitalism is the best economic
system.
• Managing capitalism means keeping it fair
to workers and consumers.
• Government should spend money to
stimulate the economy.
• Keynes’ theory is the basis of postDepression-era capitalism.
Supply and Demand
• If demand is high and supply is low, price is
high.
• If demand is low and supply is high, price is
low.
• Increasing demand increases price.
• Increasing supply decreases price.
Figure 2.1
Industry or Product Life Cycle
• Market introduction stage
• Growth stage
• Maturation stage
• Saturation and decline stage
Figure 2.2
Utility
• The marginal utility of a product is its value
in the marketplace based on how the
product is used.
• Labor utility is the concept that a product’s
cost is based on the labor component in its
cost.
Competition
• Cooperative competition: Competition
benefits consumers by lowering price.
• Destructive competition: Competition is the
process of eliminating your competitors so
that prices to consumers can be increased.
Financial Markets
• Federal Reserve system
• Banking industry
• Credit markets
• Equity markets
Bonds
• Bonds are documents that record a loan
made to a government, nonprofit
organization, or business.
• Loans are made over a designated time.
• Interest needs to be paid periodically.
• The bond documents can be traded in
financial markets.
Equities
• Equities are documents that specify a
portion of the ownership of a company.
• A dividend may or may not be paid to the
equity owner.
• The equity documents can be traded in
equity markets.
Interest Rates
• As a function of the time value of money
• As a function of inflation
• As a function of risk
• As a function of the Federal Reserve
lending rates
Summary
• Managing requires an understanding of
economics.
– Microeconomics: The study of small economies
(e.g., local or organizational markets).
– Macroeconomics: The study of large economies
(e.g., state, national, or world economies).
• Macroeconomic theorists: Adam Smith, Karl
Marx, and John Maynard Keynes
(continued)
Summary (continued)
• Macroeconomic theory
– Supply and demand
– Utility
– Industry or product life cycles
• Financial markets
– Interest rates
– Banking and lending