AP经济.ppt

Private sector (households and businesses) Public sector (government) Circular Flow Model Households One or more persons occupying a housing unit Suppliers of economic resources (income receivers) Consumers in the products market (spenders) Functional Distribution of Income Personal Distribution of Income Households as Spenders Personal Taxes Personal Savings Personal Consumption Disposition of Household Income Composition of Consumer Expenditure Business Population Plant – physical establishment (factory, farm, mine, store, or warehouse) that performs one or more functions in producing and distributing goods and services Firm – organization that employs resources to produce goods and services for profit and operates one or more plants Industry – a group of firms that produce the same, or similar, product Organizational Structure Horizontal (e.g. Coca-Cola) Vertical (e.g. Shell) Conglomerate (e.g. Pfizer) Legal Forms of Business Sole proprietorship Partnership Corporation Business Population Shares of Domestic Output Advantages of Corporations Financing: Equity – stocks or shares Debt – bonds Limited liability Spread the risk among several corporations Immortal World’s Top 10 Largest Corporations Corporation Name Annual Revenue Country Industry Wal-Mart 408 US Retail Exxon Mobil 302 US Oil, gas Royal Dutch Shell 278 Netherlands, UK Oil, gas BP 246 UK Oil, gas Saudi Aramco 233 Saudi Arabia Oil, gas Toyota Motors 204 Japan Automotive Japan Post Holdings 201 Japan Conglomerate Sinopec 197 China Oil, gas Vitol 195 Netherlands, Switzerland Raw material Total S.A. 189 France Oil, gas The Principal Agent Problem Principal – owners or stockholders Agents – managers Conflict of interests Stock options Enron, WorldCom, Arthur Andersen Role of Government: Legal Structure Rules of the game Property rights Quality Enforce contracts Medium of exchange Maintain Competition Monopoly – a single producer (supplier, seller) of a good Monopsony – a single buyer of a g