BA 101 1st Edition Lecture 1Outline of Current Lecture I. Course OutlineA. Foundation simulationB. iClickers II. Expectations for Students III. Lecture: Basic Economic Principles Current LectureI. Professor: Tom Durant- Office: 398A Anstett Hall- Office hours T/Th 10:00am – 11:30am (and by appointment)- Email: [email protected] OR [email protected] (They are connected) - Phone: 541-346-8049 (He would rather receive emails)Course DesignWhen challenged to do something you lack the knowledge, skills, or abilities to do…- Determine a strategy - Gather resources necessary- Actively “work” resources to build understanding- Test understanding by making decisions- Measure the outcomes of your decisions- Work to improve your information, understanding, and decisions based on the outcomesA. Foundation SimulationThe specific class simulation number: F68726_000- Register online- Download and save Team Member Guide (TMG) which is available online from the foundation simulation homepage or from Blackboard- Register your unique company name ONLY IN THIS FORMAT: Last name, first name. After you register your company name the last three digits of the These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.simulation number will change to become your unique company id (ex: F68726_123)What you will learn from the simulation- Concepts and Terms, formulae, methods of running a company- Interrelationship between primary functions within a typical for-profit business- Decision – making across functional departments - Economic principles- Different facets of companies Simulation Premise: $40 million electronic sensor manufacturer monopoly was broken up by the government. You represent one of the new companies that was created when the monopoly was dissolved. There are no outside competitors or substitutes. Benign environment. 2 market segments: High tech and low tech. B. iClicker information- Can be purchased from the duck store, then sold back when used- You can talk to other students about the in-class iClicker questions- You may ONLY use your iClicker and only have one. Big negative consequences to breaking this rule- iClickers need to be registered online through the iClicker website, NOT through BlackboardII. Expectations for Students- To master the concepts that define the business environment- Complete all assigned work before the deadlines- Be responsible for your own attendance - Make up missed work - Act with integrity - Follow class rules at all timesClass Rules: - Turn of cell phones in class- Use laptops and tablets ONLY for taking notes- Only use your iClickerGrade percentages:- In-class activities (15) 24% - Online quizzes (6) 12%- Midterm Exams (2) 40%- Foundation (12) 24%Out of a 1000 pt. scaleExams and Quizzes:- Exams are taken in class- Quizzes are online through Blackboard- All are individual III. Lecture: Basic Economic Concepts Economics Definition: The study of distributing resources for the production of goodsand services within a social systemResources: Raw materials, tools, machinery, capital, and people (factors of production)Demand, supply, and, price relationship: Equilibrium points are where supply equals demandEconomic systems:1. Command (socialism, communism)The government controls what goods/services are produced, their quantities, and prices2. Free MarketWhat goods/services are produced, their quantities and prices are based on supply and demand. The government has no role. 3. Mixed Almost all actual economies, the government has some role. Ex: Obamacare changed the free market of insurance, but the US government doesn’t control all markets in the US. Free Market Economy:An Inquiry into the Nature and Causes of the Wealth of Nations byAdam Smith, who promoted the idea of free and unrestricted trade. He also wrote a book aboutmorals that happened to support his principles of a free market.Invisible Hand: term first used by Adam Smith, it is an economic principle holding that the greatest benefit to a society is brought about by individuals acting freely in a competitive marketplace in pursuit of their own self-interest. If each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product, distribution, and prices are beneficial to all the individual members of the community. Individual self-interest:- Promotes: competition, innovation (in product and process), greater value (the worth, importance or usefulness of something to somebody)- Benefits: all members of the community, not just each individual by creating; more products (more choices), new products (additional wealth), and lower pricesFree Market Requirements:- Private property- Freedom of choice- Fair competition- Right to keep