Economic Challenges Facing Contemporary Businesses Uncategorized by Liliana Kendall - April 4, 20170 For the Reputation Management Company, economic challenges may occur and they need to be ready to face this and help their clients do the same. Economics is the social science that studies the choices people and governments make when dividing up their scarce resources. Economics ties in with supply and demand, which is the willingness and ability of sellers to provide goods and services and for buyers to purchase goods and services. Then there is microeconomics, which involves the forces of demand, and supply, which is the study of smaller economic units such as business, consumers and families. There are different factors driving supply factors of production play a central role in the overall supply of goods and services and a change in the cost of availability of these inputs can also shift the entire supply curve. When it comes to supply and demand, the supply curve is a graph that will show the relationship between different prices and amount of goods that sellers can offer for sale regardless of the demand. The different between micro and macro is that macroeconomics focuses on issues for the entire society and these include social, legal conditions and political which differ in each country. Economics are generally classified in one of three categories such as planning economics including communism and socialism, mixed market economies, which is a combined of both, and private enterprise system, which is the capitalism or market economy. Capitalism is a private enterprise system and competition which means businesses meet needs and demands of consumers and get rewarded with profit, governments also favors a hands-off approach and the marketplace competition regulates economic life. There are four degrees of competition include oligopoly, monopoly, pure competition and monopolistic competition. Monopoly means no direct competition, pure competition means there is many competitors, monopolistic competition is few to many and oligopoly means there are few competitors in this industry.