Chapter 1 Itβs Not Just about Forecasting
The following are the key points in the chapter. Elaborate on each
point in at least 30 words.
- Understanding economics can help you to diagnose the causes of
increases or decreases in sales volumes and costs.
- Yes, understanding economic trends allows us to understand the
causes real life events could have on our businesses.If the market is
growing and our business is not, an economic understanding would help to
know where to invest money. The same goes for when the market is not and
then knowing to not invest.
- Business decisions are about the future and must rely on a view of
the future.
- Both yes and no. Business decision should be made with all the
economic assumptions about the future but should not be heavily
dependent on them. You should be prepared for all future situations and
ready to adapt to them but also know that not ll future forecasting will
come true.
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Yes, the accuracy of your vision of the future can be enhanced
by having an understanding of economics because of the fundamental
relationships provided within economics.
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- True because the use of numbers can be too complicated to
understand, both for business managers and consumers. Using a more broad
magnitude helps everyone understand the forecasts and what they are
saying.