INSTRUCTOR MANUAL RESOURCES

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1

CHAPTER 1

Exploring the World of Business and Economics

INSTRUCTOR MANUAL RESOURCES

1.1 A Word from the Authors ......................................................................................................... 2 1.2 Transition Guide ....................................................................................................................... 2 1.3 Quick Reference Guide ............................................................................................................. 4 1.4 Learning Objectives .................................................................................................................. 5 1.5 Brief Chapter Outline ................................................................................................................ 5 1.6 Comprehensive Lecture Outline ............................................................................................... 6 1.7 Textbook Answer Keys........................................................................................................... 18 1.7a Concept Checks .................................................................................................... 18 1.7b Discussion Questions ............................................................................................ 22 1.7c Video Case: KlipTech Turns Recycled Paper into Products and Profits .............. 24 1.7d Building Skills for Career Success ....................................................................... 25 1.8 Quizzes I and II ....................................................................................................................... 26 1.9 Answer Key for Quizzes I and II ........................................................................................... 28 1.10 Classroom Exercises ............................................................................................................... 29 1.10a Homework Activities ............................................................................................ 29 1.10b Classroom Activities ............................................................................................. 29 1.10c Exercise Handouts ................................................................................................ 29

(Foundations of Business, 5e William Pride, Robert Hughes, Jack Kapoor) (Answer Key) 1 / 4

• Chapter 1 Exploring the World of Business and Economics

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1.1 A WORD FROM THE AUTHORS

This chapter accomplishes three important tasks. First, it sets the stage for the remainder of the course and provides reasons why students should study business. Second, it provides an overview of the economy, competition, and different types of economic systems. Finally, it links events in Amer- ican history to the present American business system. These concepts are essential to a basic under- standing of the American economic system as a whole.We begin Chapter 1 with a discussion of why students should study business and a definition of business. Then we explore the major types of economic systems. Next, we consider how a nation’s economy and productivity are measured. An examination of the major types of competition follows.Finally, we discuss the historical development of business in the United States and the challenges that businesses can expect to encounter in the future.

1.2 TRANSITION GUIDE

New in Chapter 1: Exploring the World of Business and Economics

• A new Inside Business feature “Visa’s Vast Global Payments Empire” describes how global pay- ments are enabling Visa to grow in a very competitive industry.• Information about the current economic recovery is discussed in the introductory paragraph.• Figure 1.1 “Who Makes the Most Money” now provides current salary information for employ- ees with different levels of educational achievement.• A new Personal App “Be the employee you’d like to hire!” describes how workers can become outstanding employees.• In the section "Start Your Own Business," a new example explains how Nick D'Aloisio, a young entrepreneur, developed apps that are worth millions.• In the section "The Organized Effort of Individuals," new information about the growth of online businesses is discussed.• Updated information about General Mills and its social responsibility programs is provided in the section "Business Profit." • A new example about Ford Motor Company is used to illustrate the concept of a market econ- omy.• All statistics in the section "Gross Domestic Product" have been updated with the most recent information available.• A revised Figure 1.6, “GDP in Current Dollars and in Inflation-Adjusted Dollars,” provides up- dated information about gross domestic product and real gross domestic product.• A new unemployment rate statistic is included in the section "Important Economic Indicators that Measure a Nation's Economy." • In the section "The Business Cycle," new information about the state of the U.S. economy at the time of publication is provided. 2 / 4

Chapter 1 Exploring the World of Business and Economics 3 © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.• New information about the size of the national debt is provided in the section "The Business Cy- cle." • A new Career Success feature titled “Career Moves and the Business Cycle” describes how job seekers can find employment in both good and bad economic times.• In the section "Monopolistic Competition," new examples are used to illustrate this type of com- petition.• A new Entrepreneurial Success feature titled “Meet the Teenaged Founder of Fish Flops” de- scribes how a teenage entrepreneur developed the concept for "Fish Flops" and turned her idea into a successful business.• New information about how Procter & Gamble is competing around the world is provided in the section "The Global Environment." • A new Social Media feature, “Government Agencies Go Global,” describes how government agencies are providing information to both businesses and individuals.• A new example describes how the economy affects business spending and business hiring in the section "The Economic Environment." • The Test Yourself feature has been placed on the text website.• The Chapter 1 Video Case has been updated to reflect new information about KlipTech—a building-materials company dedicated to sustaining the planet.

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• Chapter 1 Exploring the World of Business and Economics

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1.3 QUICK REFERENCE GUIDE

Instructor Resource Location Transition Guide IM, pp. 2–3 Learning Objectives Textbook, p. 2; IM, p. 5 Brief Chapter Outline IM, pp. 5–6 Comprehensive Lecture Outline IM, pp. 6–17

At Issue: Capitalism—Yes or No? IM, p. 12

Career Success Career Moves and the Business Cycle Textbook, p. 22 Entrepreneurial Success Meet the Teenage Founder of Fish Flops Textbook, p. 26 Inside Business Visa’s Vast Global Payment Empire Textbook, p. 3 Social Media Government Agencies Go Social Textbook, p. 30 Marginal Key Terms List Textbook, p. 34 Concept Checks Textbook, pp. 10, 12, 18, 20, 23, 27, 32 Questions and Suggested Answers, IM, pp. 18–22 Discussion Questions Textbook, p. 34 Questions and Suggested Answers, IM, pp. 22–23 Video Case (KlipTech Turns Recycled Paper into Products and Profits) and Questions Textbook, p. 34-35 Questions and Suggested Answers, IM, pp. 24–25 Building Skills for Career Success Textbook, p. 35-36 Suggested Answers, IM, p. 25 IM Quiz I & Quiz II IM, pp. 26–28 Answers, IM, p. 28 Classroom Exercises IM, p. 29

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