Considering the elements of microeconomics, create a list of three (3) best practices that would benefit any small business or start-up. Explain your rationale. The element of microeconomics is every business endeavor is an exchange between a buyer and a seller. Understanding the factors that determine demand and supply is the first best practice that would benefit a small business startup. The demand reflects the willingness and ability of buyers to purchase goods and services at different prices. The supply is the amount of goods and services needed for sale at different prices.
Another suggestion for starting up a small business is to check the demographics of the area and what people want and how much they can afford. If an entrepreneur does this research he has a much better chance of survival. The third best practice is to research your competition. The supply and demand does not have to be like them but it will give you the tools to see what your company can do better than the other. A smart business person needs the knowledge and savvy of finding out how to prove to shoppers that your service or product is the better than anyone else’s.
Chapter 3 discusses three (3) types of economic systems: capitalism, planned economies (socialism and communism), and mixed market economies. Create and describe a fourth type and explain why it would bet better than the other three (3). Please be as creative as you like. Capitalism is the private enterprise system and competition. This economy needs to run on its own to succeed. The government is not involved and it is about fierce competition. It is a way for individuals to use their knowledge to gain the advantage.
Mixed Market is about blending all the economies together. This has worked for France hundreds of years. They blend private enterprise, government owned firms and also socialism and it has worked well for them. Planned Economics (Socialism and Communism) is a way of dictatorship and keeping everyone on the same level. The government runs it all. Mine would be called Individual Economics. This would be an economy that will teach people to share the wealth. We need very educated people to be able to make change for the better.
We cannot take away dreams and motivation from people, if we controlled their lives there would have no leaders, no brain surgeons, no rocket scientist, no great inventors to make this world prosper. I believe the only control we should have is to offer reasonable tuition for individuals that want to expand their minds and we should offer reasonable health insurance, so everyone will not become in debt if they have a medical emergency. The economics would be run with a right for profit.
Yes, there is always going to be some people out there that just want to stay mediocre but it will be their choice. We need all types of workers so it should be that way. We should not punish people for making money by charging them more taxes, it should be the opposite. That would motivate people to try to do better. Our government also needs to give incentives to own a house or a car. This type of economy would increase buying and decrease our debit. One more thing and I will shut up. We need to still work with countries abroad; having good partnerships with them would only be a positive move.