Business in Action 8th Edition Bovee Solutions Manual

Business in Action 8th Edition Bovee Solutions Manual
Business in Action 8th Edition Bovee Solutions Manual
Business in Action 8th Edition Bovee Solutions Manual

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Business in Action 8
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Chapter 2
UNDERSTANDING BASIC ECONOMICS


Chapter Overview

This chapter introduces important micro- and macroeconomic concepts such as
demand versus supply, competition, monetary and fiscal policies, inflation, and
economic indicators. It distinguishes among major economic systems and discusses
ways of measuring economic activity. It also covers the debate over deregulation and
identifies key roles that government plays in the economy.



Chapter Outline


I. What Is This Thing Called the Economy?
A. The economy is the sum total of all the economic activity within a given
region
B. Economics is the study of how a society uses its scarce resources to produce
and distribute goods and services
1. Microeconomics is the study of economic behavior among consumers,
businesses, and industries that collectively determine the quantity of
goods and services demanded and supplied at different prices
2. Macroeconomics is the study of a country’s larger economic issues,
such as competition, government policies, and how an economy
maintains and allocates its scarce resources
C. Each society must decide how to use its economic resources or factors of
production
1. Natural resources – things that are useful in their natural state (land,
forests, minerals, and water)
2. Human resources – people and their individual talents and capacities
3. Capital – money, computers, machines, tools, and buildings
4. Entrepreneurship – the spirit of innovation, the initiative and the
willingness to take on risks involved in creating/operating a business
5. Knowledge – the collective intelligence of an organization
C. The supply of these factors of production is limited
1. Scarcity creates competition for resources
2. Scarcity forces consumers, companies, and governments to make trade-
offs
a. Opportunity cost is the value of the most attractive option not
selected when making a trade-off

II. Economic Systems
A. An economic system is the basic set of rules for allocating a society’s
resources to satisfy its citizens’ needs
1. Free-market system – individuals and companies decide what products

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to produce, how to produce them, to whom to sell them, and at what
price

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a. Referred to as capitalism – private parties own/operate the majority
of businesses and competition, supply, and demand determine
goods/services produced
b. No economy is without limited intervention by government, creating
a mixed economy or mixed capitalism
2. Planned system – governments largely control allocation of resources
a. Communism is the economic system that allows individuals the least
degree of economic freedom
b. Socialism has a high degree of government planning and some
government ownership of capital resources, but private ownership is
permitted in some industries
3. Governments change structure of economy in two ways:
a. Nationalizing – assuming ownership of selected companies or
industries
b. Privatizing – allowing private businesses to perform services once
performed by the government

III. The Forces of Demand and Supply
A. Demand – buyers’ willingness and ability to purchase products at various
price points
1. The demand curve shows the relationship between price and demand –
as price decreases, demand increases (i.e., more people are willing to
buy)
B. Supply – the quantities of a good/service that producers will provide on a
particular date at various prices
1. The supply curve shows the relationship between supply and demand –
as price increases, the quantity that sellers are willing to supply increases
C. Demand and supply curves intersect at equilibrium point – the point at
which quantity supplied equals quantity demanded

IV. The Macro View: Understanding How an Economy Operates
A. Competition is rivalry among businesses for the same customers.
B. There are different degrees of competition
1. Pure competition – the market situation in which there are so many
buyers and sellers that no single buyer or seller can individually
influence market price
2. Monopoly – the market situation in which one company dominates the
market and can control prices
3. Monopolistic competition – the market situation in which there are
many sellers who differentiate their products from those of competitors
in at least some small way
4. Oligopoly – the market situation in which a very small number of
suppliers, sometimes only two, provide a particular good or service
C. Economic activity changes in response to factors such as investment patterns,
shifts in consumer attitudes, world events and basic economic forces – called
economic fluctuation or business cycles
1. Economic expansion – when the economy is growing and consumers are
spending more money
2. Economic contraction – when spending declines, employment drops and
the economy slows down

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a. A recession is two consecutive quarters of decline in gross domestic
product
b. A deep and prolonged recession can be considered a depression, a
catastrophic collapse of financial markets
D. Unemployment rate – the percentage of labor force currently without
employment
1. Four types of unemployment – frictional, structural, cyclical, and
seasonal
E. Inflation – the steady rise in the average prices of goods and services
throughout the economy
1. Deflation is the sustained fall in average prices

V. Government’s Role in a Free-Market System
A. There is considerable debate over the key roles that governments play in the
economy
1. Regulation involves relying more on laws and policies than on market
forces to govern economic activity
2. Deregulation involves removing laws and regulations to allow the
market to prevent excesses and correct itself over time
B. The government plays a role in the economy in four major areas:
1. Protecting stakeholders through numerous regulatory agencies
2. Fostering competition through prevention of monopolies
a. Antitrust legislation
b. Merger and acquisition approval
3. Encouraging innovation and economic development
4. Stabilizing and stimulating the economy through use of monetary policy
and fiscal policy
a. Monetary policy involves adjusting the nation’s money supply by
increasing or decreasing interest rates. It is administered by the
Federal Reserve Board
b. Fiscal policy involves changes in the government’s revenues
(taxation) and expenditures

VI. Economic Measures and Monitors
A. Economic indicators are statistics such as interest rates, unemployment
rates, housing data and industrial productivity
1. Leading indicators (such as housing starts and durable-goods orders)
suggest changes that may happen to the economy in the future
2. Lagging indicators (such as the unemployment rate) provide
confirmation that something has happened in the past
B. Price indexes offer a way to monitor inflation or deflation
1. The consumer price index (CPI) measures rate of inflation by
comparing change in prices of a representative “basket” of consumer
goods and services
2. The producer price index (PPI) is a statistical measure of price trends
at the producer and wholesaler levels
C. The gross domestic product (GDP) is the value of all the final goods and
services produced by businesses located within a nation’s borders.

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Learning Catalytics is a "bring your own device" student engagement, assessment,
and classroom intelligence system. It allows instructors to engage students in class
with real-time diagnostics. Students can use any modern, web-enabled device
(smartphone, tablet, or laptop) to access it. For more information on using Learning
Catalytics in your course, contact your Pearson Representative.



Classroom Activities


Break-out Group Discussion: Capitalism vs. Socialism
Goal: Ask students to discuss the pros and cons of both capitalism and socialism and
to come away with the understanding that each system has its own benefits and
shortcomings.
Time Limit: 15 minutes.
Details:
1. Break students into groups of five. (2 minutes)
2. Ask each group to come up with the top pros and cons of capitalism or
socialism. Sample list items include capitalism’s efficient self-adjusting
market mechanism via “demand vs. supply”, encouragement of hard work
and entrepreneurship, lower taxes, higher income disparity, and generally
poorer records in the public sector such as education, healthcare and social
welfare, and socialism’s generally better records in education, healthcare and
social welfare, lower income disparity, higher taxes and less incentive for
hard work and entrepreneurship. Use examples of countries and regions to
illustrate such differences, e.g. U.S. and Hong Kong for capitalism, and
France and Canada for socialism (10 minutes)
3. Ask representatives/speakers from each group to present their results to the
whole class, either verbally or written (on the blackboard). (3 minutes)

Summary: Instructor summarizes the top pros and cons for both capitalism and
socialism, and concludes that the best system tends to be a mixed system that
incorporates the beneficial elements of both systems.



In-Class Activity: GDP vs. GNP
Goal: Help students differentiate between Gross Domestic Product (GDP) and Gross
National Product (GNP).
Time Limit: 10 minutes.
Details:
1. Draw a table with three columns and four rows on the blackboard with the
following column headings respectively: “Scenarios”, “Which Country’s
GDP” and “Which Country’s GNP.”
2. Lists the following three scenarios under the column heading “Scenarios.”
a. An American banker working in London
b. A Chinese factory worker in a Coca Cola bottling plant in Shanghai

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c. An Australian volunteer in South Africa
3. Ask students to pair up and recreate the content of the blackboard in their
notebooks. They then need to populate the rest of the table by listing the
names of countries under the two column headings corresponding to GDP
and GNP.
4. Make it clear to students that the main difference between GDP and GNP is
that GDP considers where the production occurs and GNP considers who is
responsible for the production. For instance, in Scenario A, the goods and
services produced by an American banker in London should be classified as
the GDP of United Kingdom (UK) and the GNP of United States (US).

Hint: GNP excludes the value of production from foreign-owned businesses
within a nation’s boundaries (Scenario B). Volunteering is not a component
of GDP or GNP (Scenario C).




End-of-Chapter


Behind The Scenes
The Push for Grid Parity at Suntech Power

Critical Thinking Questions
2-1. If consumers are willing to wait weeks or months for the latest iPhone,
why does Apple need to worry about producing enough phones to meet
immediate demand?
If consumers are made to wait weeks or months, some may become impatient
and switch to Samsung or another brand of phone. Producing the phones is no
simple task, as it involves the coordination of many component parts to be
designed, manufactured, and shipped, as well as the structuring of wireless
service contracts. (LO: 3, AACSB: Analytical Thinking)

2-2. If Apply temporarily can’t meet demand for a product, should it raise
the price to bring supply and demand into balance? Why or why not?
A demand curve shows that as price increases, demand decreases. So raising the
price temporarily could help balance out supply and demand. However, doing so
might turn off consumers who expected to pay the prescribed price. Consumers
expect this kind of fluctuation of prices in airline tickets, but it is not
conventional with consumer goods. (LO: 3, AACSB: Analytical thinking)

2.3 Apple is famously secretive about the details of upcoming product
launches, leaving consumers and industry insiders to speculate on the
features and functions of new models. What effect might this have on
demand?
Shrouding the new model is mystery could help to increase the mystique of the
product, and therefore its demand. However, withholding news of special
features could also lose out on attracting buyers who would desire these features.
(LO: 3, AACSB: Analytical thinking)

Learn More Online

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Students’ responses will depend, in large part, on the material currently posted on the
website. (LO: 3, AACSB: Analytical thinking).



Test Your Knowledge

Questions for Review
2-4.Why is the economic concept of scarcity a crucial concept for businesspeople
to understand?
The economic concept of scarcity is a crucial concept for businesspeople to
understand because scarcity creates competition for resources and forces trade-
offs on the part of every participant in the economy. First, businesses and
industries compete with each other for the resources they need, including
materials, employees and customers. Second, given this universal scarcity of
resources, businesses are constantly forced to make trade-offs, such as deciding
how much money to spend on advertising a new product versus how much to
spend on the materials used to make it, or deciding how many employees to have
in sales versus customer support. (LO: 1)

2-5. How does macroeconomics differ from microeconomics?
Macroeconomics looks at the study of an economy as a whole. It is the “bigger
picture” view. It examines factors such as changes in unemployment, national
income, rate of the economy’s growth, the nation’s gross domestic product, and
inflation and price levels. Microeconomics looks at the smaller picture. It focuses
more on consumers, businesses, and industries. Microeconomics examines
factors such as supply and demand and the determination of price and output in
markets. (LO: 1)

2-6. Does the United States have a purely free-market economy or a mixed
economy?
The U.S. has a mixed economy. (LO: 2)

2-7. What is the difference between monetary policy and fiscal policy?
Monetary policy is government policy and actions taken by the Federal Reserve
Board to regulate the nation’s money supply. Fiscal policy is the use of
government revenue collection and spending to influence the business cycle.
(LO: 5)

2-8. Why might a government agency seek to block a merger or acquisition?
To preserve competition, a government agency may stipulate requirements
companies must meet to gain approval of a proposed merger or acquisition. If
the governmental agency thinks a proposed merger or acquisition might restrain
competition, it may deny approval altogether. (LO: 5, AACSB: Ethical
understanding and reasoning)

Questions for Analysis
2-9. Why do governments intervene in the free-market system?
Governments intervene in free-market systems to influence prices and wages or
to change the way resources are allocated. This practice of limited intervention is
called mixed capitalism, which is the economic system of the United States.

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Under mixed capitalism, the pursuit of private gain is regarded as a worthwhile
goal that ultimately benefits society as a whole. (LO: 2)

2-10. How do countries know if their economic systems are working?
Economic indicators are statistics such as interest rates, unemployment rates, and
housing data, GNP, GDP, CPI, etc. A country’s professional economists sort and
interpret these data to monitor and measure the country’s economic performance
and predict its future performance. (LO: 6)

2-11. Are the fluctuations in the business cycle predictable?
No, such fluctuations are rarely predictable. (LO: 4)

2-12. Is it beneficial for the country as a whole for individual U.S. states to
compete with one another to attract companies? (Offering tax breaks in
exchange for building new facilities is a common tactic states use to attract
commercial investment, for example.)
It may not be wise for such competition to get out of control because each
competing state will hurt from low tax revenues. (LO: 5, AACSB: Analytical
thinking)

2-13. Ethical Considerations. The risk of failure is an inherent part of free
enterprise. Does society have an obligation to come to the aid of
entrepreneurs who try but fail? Why or why not?
Students’ answers will vary, but may reflect some of the following concerns:
Entrepreneurs willing to face risks of failure are a vital force in capitalist
economies
Such entrepreneurs will be rewarded handsomely when they become
successful
Many such entrepreneurs are involved in multiple ventures and may use
earnings from successful ventures to fund, develop or improve ventures that
are less successful (LO: 5, AACSB: Ethical understanding and reasoning)

Questions For Application
2-14. How might government and education leaders work with business to
minimize structural unemployment?
Government and education leaders might work with businesses to provide
educational opportunities and training programs that would best match workers’
skills with the current needs of employers in an effort to minimize structural
unemployment. (LO: 6, AACSB: Analytical thinking)

2-15. How would a decrease in Social Security benefits to retired persons
affect the economy?
First it would lower government spending and perhaps reduce the national debt.
While many might see this as an economic boost, all things being equal, a
decrease in government spending would also reduce the amount of money in the
economy. For example, because of the circular flow, the elderly would have less
money to spend so businesses that cater to the needs of the elderly might be hurt
and the employees of those businesses might lose their jobs and so on. In order
for the economy to stay balanced, the decrease in money spent by the
government on Social Security would have to be substituted by an infusion of

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money into the economy from another source. Plus the multiplier effect of that
change would have to be analyzed. (LO: 6, AACSB: Analytical thinking)

2-16. If you wanted to increase demand for your restaurant but are unable to
lower prices or increase advertising, what steps might you take?
Applying the law of demand vs. supply, you may want to relocate your restaurant
to a neighborhood/area where there are not as many other restaurants, i.e. where
there is less supply. There will be less competition and you may even be able to
raise your price slightly without driving customers away. (LO: 3, AACSB:
Analytical thinking)

2-17.Concept Integration. What effect might the technological environment,
discussed in Chapter 1, have on the equilibrium point in a given market?
Student answers may vary; however, the following provides a possible scenario:
Technological advances may help reduce the cost of producing goods and
services and therefore increasing the supply for a given market at every price,
thus moving the equilibrium point as well. (LO: 3, AACSB: Information
technology)



Expand Your Knowledge

Discovering Career Opportunities
Thinking about a career in economics? Find out what economists do by reviewing
the Occupational Outlook Handbook in your library or online at www.bls.gov/oco.
This is an authoritative resource for information about all kinds of occupations.
Search for “economists” then answer these questions:

2-18. Briefly describe what economists do and their typical working
conditions.
Economists study the production and distribution of resources, goods, and
services by collecting and analyzing data, researching trends, and evaluating
economic issues. Economists typically research and analyze economic issues,
conduct surveys and collect data, analyze data using mathematical models and
statistical techniques, and prepare reports, tables, and charts that present research
results. They also interpret and forecast market trends, advise businesses,
governments, and individuals on economic topics, design policies or make
recommendations for solving economic problems, and write articles for
publication in academic journals and other media sources.

Economists apply economic analysis to issues within a variety of fields, such as
education, health, development, and the environment. Some economists study the
cost of products, healthcare, or energy. Others examine employment levels,
business cycles, or exchange rates. Still, others analyze the effect of taxes,
inflation, or interest rates.

Economists held about 16,900 jobs in 2012, of which 45 percent were in
government. Another 19 percent worked in management, scientific, and
professional consulting services. Economists typically work independently in an
office. However, many economists collaborate with other economists and
statisticians, sometimes working on teams. Some economists work from home,

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and others may be required to travel as part of their job or to attend conferences.
(LO: 5)

2-19. What is the job outlook for economists? What is the average salary for
starting economists?
Employment of economists is projected to grow 14 percent from 2012 to 2022,
about as fast as the average for all occupations.

Businesses and organizations across many industries are increasingly relying on
economic analysis and quantitative methods to analyze and forecast business,
sales, and other economic trends. Demand for economists should grow as a result
of the increasing complexity of the global economy, additional financial
regulations, and a more competitive business environment. As a result, demand
for economists should be best in private industry, especially in management,
scientific, and professional consulting services.

However, employment in the federal government—the largest employer of
economists—is projected to decline. As a result, the need for economists in the
federal government is likely to be limited.

The median annual wage for economists was $91,860 in May 2012. The median
wage is the wage at which half the workers in an occupation earned more than
the amount and half earned less. (LO: 5, AACSB: Ethical understanding and
reasoning)



2-20. What training and qualifications are required for a career as an
economist? Are the qualifications different for jobs in the private sector as
opposed to those in the government?
A master’s degree or Ph.D. is required for most economist jobs. Positions in
business, research, or international organizations often require a combination of
graduate education and work experience.

Students can pursue an advanced degree in economics with a bachelor’s degree
in a number of fields, but a strong background in math is essential. A Ph.D. in
economics requires several years of study after earning a bachelor’s degree,
including completion of detailed research in a specialty field.

Candidates with a bachelor’s degree qualify for some entry-level economist
positions, including jobs with the federal government. An advanced degree is
sometimes required for advancement to higher level positions.

Most who complete a bachelor’s degree in economics find jobs outside the
economics profession as research assistants, financial analysts, market research
analysts, and similar positions in business, finance, and consulting. (LO: 5)


Improving Your Tech Insights: Data Mining
To find a few ounces of precious gold, you dig through a mountain of earth. To find a
few ounces of precious information, you dig through mountains of data, using data
mining, a combination of technologies and techniques to extract important customer

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insights buried within thousands or millions of transaction records. (Data mining has
many other uses as well, such as identifying which employees are most valuable to a
firm. And a related technology, text mining, applies similar analysis tools to
documents.)

Data mining is an essential part of business intelligence because it helps extract
trends and insights from millions of pieces of individual data (including
demographics, purchase histories, customer service records, and research results).
Data mining helps marketers identify who their most profitable customers are, which
goods and services are in highest demand in specific markets, how to structure
promotional campaigns, where to target upcoming sales efforts, and which customers
are likely to be high credit risks, among many other benefits. You may hear the term
business analytics and predictive analytics used in this context as well, to describe
efforts to extract insights from databases.

Research one of the commercially available data-mining or business analytics
systems. The list of member companies of the Data Mining Group (www.dmg.org)
is a good place to start. In a brief email message to your instructor, describe how
the system you’ve chosen can help companies market their goods and services
more effectively.
Student answers will vary depending on the magazines or companies they pick. (LO:
6, Information technology)



Practice Your Skills

Sharpening Your Communication Skills
The subprime mortgage crisis that helped throw the global economy into the
Great Recession bewildered a lot of people. In a brief paragraph (no more than
100 words), explain what a subprime mortgage is and why these loans helped
trigger the recession.

Student answers will vary but they should define subprime mortgages, which are
home loans for borrowers with low credit scores. They should also address the high
risk and high default nature of such loans. Students need to mention that half of
subprime mortgages are Adjustable Rate Mortgages, which are especially vulnerable
to payment shock when low initial rates expired. (LO: 4, AACSB: Reflective
thinking)



Building Your Team Skills
Economic indicators help businesses and governments determine where the economy
is headed. As part of a team assigned by your instructor, analyze the following
newspaper headlines for clues to the direction of the U.S. economy:

• “Housing Starts Lowest in Months”
• “Fed Lowers Discount Rate and Interest Rates Tumble”
• “Retail Sales Up 4 Percent Over Last Month”
• “Business Debt Down from Last Year”

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• More Manufacturers Showing Interest in Upgrading Production
Equipment”
• “Local Economy Sinks as Area Unemployment Rate Climbs to 9.2
Percent”
• “Computer Networking Firm Reports 30-Day Backlog in Installing
Business Systems”

Is each item good news or bad news for the economy? Why? What does each
news item mean for large and small businesses? Report your team’s findings to
the class. Did all the teams come to the same conclusions about each headline?
Why or why not? With your team, discuss how these different perspectives
might influence the way you interpret economic news in the future. (LO: 6,
AACSB: Analytic thinking)

• Housing Starts Lowest In Months
This indicates that consumers are not very confident about the future, so they
are “staying put” rather than building new houses.

• Fed Lowers Discount Rate And Interest Rates Tumble
This headline indicates that aggregate demand is slow. In order to boost the
economy and encourage firms to invest more, the Fed lowers the discount
rate and other interest rates follow.

• Retail Sales Up 4 Percent Over Last Month
Increase in sales indicates a healthy economy with employment rates rising
and rising consumer confidence as a result. Some inflationary pressure may
result.

• Business Debt Down From Last Year
This indicates that business owners are less confident and less willing to take
on debt.

• More Manufacturers Showing Interest in Upgrading Production
Equipment
This headline indicates that businesses are replacing labor with machines.

• Local Economy Sinks as Area Unemployment Rate Climbs to 9.2
Percent
This indicates that high unemployment rate often contributes to lower
consumer spending, resulting in a shrinking local economy.

• Computer Networking Firm Reports 30-Day Backlog in Installing
Business Systems
This indicates growth in the economy, as businesses are growing.


Developing Your Research Skills
Some career paths have higher unemployment risks during the ups and downs of
economic fluctuations. Research three business careers that should be relatively
“recession proof” in the coming years, meaning that employment is unlikely to

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drop dramatically (or may even increase) during a recession. Summarize your
findings in a one-page report.
Student answers may vary but three likely such careers are healthcare, education, and
green technology. (LO: 4)

Assisted-graded Questions

2.21 Why is competition an important element of the free-market system?
The need to compete for customers keeps prices down, encourages cost-cutting
techniques, and promotes a diversity of goods to cater to diverse and changing
consumer preferences. Because competition responds to customer demands,
products that are low quality or dangerous will be removed from the market,
while products or services that are quality, fairly priced, and meet consumers
needs will stay on the market. Because companies will not receive money for
goods that the consumer does not find worthwhile, the system is considered to be
“self-regulating.” (LO: 4, AACSB: Analytical thinking)

2.22 How might the word “free” affect public and political discussions of free-
market systems?
There is much debate about how “free” the free market should be. In a broader
view, this argument springs from profound philosophical differences over the
role government should play in society as a whole. More narrowly, even
professional economists don’t always agree on what role the government should
play in the economy. Much of the debate is framed as the argument between
regulation versus deregulation. (LO: 5, AACSB: Ethical understanding and
reasoning)





CHECKPOINTS

LEARNING OBJECTIVE 1: Define economics, and explain why scarcity is
central to economic decision making.

Critical thinking:
(1) Why is entrepreneurship considered a factor of production?
Entrepreneurship is considered a factor of production because it is finite, just like the
other four factors of production, in that not everyone has the spirit of innovation, the
initiative, and the willingness to take the risks involved in creating and operating
businesses. Like the other four factors, entrepreneurship can also be used to satisfy
society’s needs.

(2) If you had an unlimited amount of money, would you ever need to make trade-
offs again? Why or why not?
Students’ responses will vary depending on personal opinions but points to consider
include the fact that economics is defined in terms of scarcity, and scarcity makes
trade-off a necessity.

It’s your business:

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(1) Did you consider opportunity cost when you chose the college or university you
are currently attending?
Students’ responses will vary depending on personal experiences.

(2) What trade-offs did you make in order to read this chapter at this exact moment in
your life? (Think about the decisions you made to get to a point in your life where
you’re taking a business course.)
Students’ responses will vary depending on personal experiences.


LEARNING OBJECTIVE 2: Differentiate among the major types of economic
systems.

Critical thinking:
(1) Why are no economies truly free, in the sense of having no controls or
restrictions?
Because in all economies, local, state, national, and even international governments
intervene in the economy to various degrees, to accomplish goals that leaders deem
socially or economically desirable. These interventions include taxation and price
controls.

(2) What are some possible risks of privatizing basic services such as the
transportation infrastructure?
Some possible risks include that the private entities that are in control of
transportation infrastructure could sacrifice infrastructure quality and safety to
minimize costs and maximize profits. They may also be entities controlled by foreign
governments that may not be friendly towards the U.S. or even become hostile both
politically and militarily.

It’s your business:
(1) What is your emotional reaction to the terms capitalism and socialism? Explain
why you feel the way you do.
Students’ responses will vary depending on personal opinions.

(2) Would you rather pay lower taxes and accept the fact that you need to pay for
many services such as health care and education, or pay higher taxes with the
assurance that the government will provide many basic services for you? Why?
Students’ responses will vary depending on personal opinions.


LEARNING OBJECTIVE 3: Explain the interaction between demand and
supply.

Critical thinking:
(1) How does the interaction of demand and supply keep a market in balance, at least
approximately and temporarily?
The interaction of demand and supply keep a market in balance through the
equilibrium point.

(2) If the prices of complementary products for a given product go up, what effect is
this increase likely to have on demand for that product?

18. Bovee/Thill, Business in Action 8/e Instructor’s Manual
Copyright ©2017 Pearson Education, Inc. 2-14




This increase will likely reduce the demand for that product.

It’s your business:
(1) Are there any products or brands you are so loyal to that you will purchase them
at almost any price? Will you accept less-expensive substitutes?
Students’ responses will vary depending on personal opinions.

(2) Have you ever purchased something simply because it was on sale? Why or why
not?
Students’ responses will vary depending on personal experiences.



LEARNING OBJECTIVE 4: Identify four macroeconomic issues that are
essential to understanding the behavior of the economy.

Critical thinking:
(1) Are colleges and universities an example of pure competition or monopolistic
competition? Why?
They are monopolistic competition since they offer products that can be distinguished
from competing products in at least some small way, such as strengths in certain
majors or facilities.

(2) Are monopolies always harmful to consumers? Why or why not?
Not necessarily. There are some government sanctioned monopolies such as utilities
and the U.S. Postal Service, which are not really harmful to consumers.

It’s your business:
(1) What state of the business cycle is the economy currently in? Is this influencing
your career plans?
Students’ responses will vary depending on personal experiences and opinions.

(2) Have you ever been unemployed (at a time when you were actively looking for
work)? Which of the four categories of unemployment would you have fallen under?
Students’ responses will vary depending on personal experiences and opinions.



LEARNING OBJECTIVE 5: Outline the debate over deregulation, and identify
four key roles that governments play in the economy.

Critical thinking:
(1) Would it be wise for the government to put price controls on college tuition? Why
or why not?
Students’ responses will vary depending on personal opinions as well as how much
of a role they think government should play in the economy.

(2) Under what conditions, if any, should the federal government step in to rescue
failing companies?
Students’ responses will vary depending on how much of a role they think
government should play in private industries.

It’s your business:

19. Bovee/Thill, Business in Action 8/e Instructor’s Manual
Copyright ©2017 Pearson Education, Inc. 2-15




(1) How do you benefit from competition among the companies that supply you with
the goods and services you need?
Students’ responses will vary depending on personal opinions

(2) Does this competition have any negative impact on your life?
Students’ responses will vary depending on personal opinions



LEARNING OBJECTIVE 6: Identify the major ways of measuring economic
activity.

Critical thinking:
(1) Why would anyone bother to monitor lagging indicators?
Lagging indicators are important since they provide confirmation that something
(such as a recession) has occurred in the past.

(2) Why is GDP considered a more accurate measure of a country’s economic health
than GNP?
GDP is considered a more accurate measure since it includes goods and services
produced within a country’s borders, and enables a nation to evaluate its economic
policies and to compare its current performance with prior periods or with the
performance of other nations.

It’s your business:
(1) In your multiple economic roles as a consumer, employee, and investor, is
inflation a good thing, a bad thing, or both? Explain your answer.
Students’ responses will vary depending on personal opinions.

(2) How have increases in college costs affected your educational plans?
Students’ responses will vary depending on personal experiences.

20. Developing a
Business Mindset










Chapter 2
Understanding
Basic Economics

Business in
Action 8e
Bovée/Thill

21. Introduction
Copyright © 2017 Pearson Education, Inc.
2-2




• This chapter offers

 A brief introduction to economics from a
business professional’s perspective

 A high-level look at the study of economics,
types of economic systems, and the
interaction of supply and demand
• Understanding basic economic principles
is essential to successful business
management

22. Copyright © 2017 Pearson Education, Inc.
2-3
Learning Objectives




1. Define economics, and explain why
scarcity is central to economic decision
making.
2. Differentiate among the major types of
economic systems.
3. Explain the interaction between demand
and supply.

23. Copyright © 2017 Pearson Education, Inc.
2-4
Learning Objectives (cont.)




4. Identify four macroeconomic issues that
are essential to understanding the
behavior of the economy.
5. Outline the debate over deregulation, and
identify four key roles that governments
play in the economy.
6. Identify the major ways of measuring
economic activity.

24. Copyright © 2017 Pearson Education, Inc.
2-5
What Is This Thing Called
The Economy?




• Economy

 The sum total of all the economic activity
within a given region
• Economics

 The study of how a society uses its scarce
resources to produce and distribute goods
and services

25. Copyright © 2017 Pearson Education, Inc.
2-6
What Is This Thing Called
The Economy? (cont.)




• Microeconomics

 The study of how consumers, businesses, and
industries collectively determine the quantity of
goods and services demanded and supplied at
different prices
• Macroeconomics

 The study of “big picture” issues in an economy,
including competitive behavior among firms, the
effect of government policies, and overall
resource allocation issues

26. Copyright © 2017 Pearson Education, Inc.
2-7
Factors of Production




• Natural resources

 Land, forests, minerals, water, and other
tangible assets usable in their natural state
• Human resources

 All the people who work in an organization or
on its behalf

27. Copyright © 2017 Pearson Education, Inc.
2-8
Factors of Production (cont.)




• Capital

 The funds that finance the operations of a
business as well as the physical, human-
made elements used to produce goods and
services, such as factories and computers
• Entrepreneurship

 The combination of innovation, initiative, and
willingness to take the risks required to create
and operate new businesses

28. Copyright © 2017 Pearson Education, Inc.
2-9
Factors of Production (cont.)




• Knowledge

 Expertise gained through experience or
association

29. Exhibit 2.1 Factors of Production

30. Copyright © 2017 Pearson Education, Inc.

2-10

31. Copyright © 2017 Pearson Education, Inc.
2-11



The Economic Impact of Scarcity





• Scarcity

 A condition of any productive resource that
has finite supply
• Opportunity cost

 The value of the most appealing alternative
not chosen

32. Copyright © 2017 Pearson Education, Inc.
2-12
Economic Systems




• Economic system

 The policies that define a society’s particular
economic structure; the rules by which a
society allocates economic resources

 Free-market, planned

33. Copyright © 2017 Pearson Education, Inc.
2-13
Free Market Systems




• Free-market system

 An economic system in which decisions about
what to produce and in what quantities are
decided by the market’s buyers and sellers
• Capitalism

 Economic system based on economic
freedom and competition

34. Another Random Document on
Scribd Without Any Related Topics

35. * * * * *
"Maasta olet sinä tullut ja maaksi pitää sinun jälleen tuleman…"
kajahtivat rykmentinsaarnaajan hautaussanat, samalla kun jäätyneet
multakokkareet kumahtelivat päällimmäisten ruumisten kontistuneille
jaloille. Paljastetuin päin ja kädet ristissä miekankahvan ympärillä
seisoi Löfving haudan partaalla liikkumatonna kuin kuvapatsas,
tuijottaen kulmat rypyssä alas hautaan. Hänen katseensa oli
pysähtynyt erääseen päällimmäisistä ruumiista. Se oli
nuorenpuoleinen sotilas ja nähtävästi oli sillä ollut tuskallinen
kuolinkamppaus, sillä hampaat, jotka näkyivät sinertyneiden huulten
välistä, oli lujasti yhteen purtu. Lasittuneet silmät olivat puoliavoinna
ja kasvoilla kuvastui kuin jähmettynyt kirous. Ruumiinkantajat eivät
olleet saaneet hänen kuolinasentoon kangistunutta ruumistaan
oikenemaan, sillä polvet olivat koukussa ja nyrkkiin puristettu oikea
käsi ojentui suoraan ylöspäin ikäänkuin uhaten haudan partaalla
seisovia.
Matalana ja tuhruisena kaareutui taivas haudan yllä, räntää satoi
yhä ja allapäin seisoivat pörröiset ja likaiset sotilaat ikäänkuin
jokainen olisi synkkänä arvaillut hetkeä, milloin hänen tuli seurata
noita multaan peittyviä tovereitaan. Alakuloisesti ja soinnuttomasti
kaikuivat hautausvirren sävelet:
    Mustaan multaan tuhvaks',
    Tomuks' tulemaan
    Minun ruumiin' pantu on;
    Lihan' on lahonn',
    Muoton' kauneus pois kadonn',
    Maan mullast' kyll' luotu lienen.
    — — — — —

36. Kun toimitus oli päättynyt, ampuivat Sprengtportin rakuunat kolme
yhteislaukausta. Laihat ja takkuiset hevoset nostivat laukausten
pamahtaessa nuupollaan riippuvia päitään ja haudan yli levisi kitkerä
ruudinsavu.
"Ruudinsavussa saavat he edes hautaan peittyä, vaikka eivät
saaneetkaan sen keskellä kuolla", virkahti Löfving Hohdille.
Sotilaat tarttuivat lapioihinsa ja alkoivat peittää vainajia. Majuri
Sprengtport käski luutnanttinsa viedä rakuunat takaisin leiriin,
laskeutui itse satulasta ja lähestyi Löfvingiä. Katkerasti hymähtäen
lausui hän tälle:
"Jahka vielä saamme muutamia tällaisia hautoja luoda, niin —"
"Maa on piankin venäläisten hallussa Viipurista Tornioon saakka",
keskeytti hänet Löfving.
"Niin, ja sota päättynyt, sillä sotajoukkomme on vajonnut maan
alle", täydensi Sprengtport.
"Sen sijaan, että sen olisi tullut vallottaa Pietari", lisäsi Löfving.
"No, ovathan kenraalimme sen monta kertaa jo vallottaneet",
naurahti
Sprengtport.
"Mielikuvituksessaan ja korskeissa puheissaan", jatkoi Löfving.
"Niin, ja nämä ovat niiden voittojen jälkirääpiäisiä."
"Mutta, totta puhuen, majuri", alkoi Löfving hetken kuluttua,
"luuletteko tämän onnettomasti aletun sodan saavan enää parempaa

37. käännettä, kun sotaliikkeet taas kuun tai parin perästä alkavat?"
"Sitä en ollenkaan usko", vastasi Sprengtport totisena.
"Sotajoukkomme kykenisi vielä johonkin… ja oikeastaan paljoonkin,
jos johto olisi toinen. Mutta herrat Tukholmassa ovat nyt yhtä
epäröiviä ja neuvottomia kuin he olivat sodan alussa korskeita ja
voitonvarmoja."
Hetken kuluttua lisäsi hän ääntään alentaen: "Uskokaa minua,
Löfving, että ennen kuin ensi kesän kukat ovat ehtineet kuoleutua,
on tämä sota saanut mitä häpeällisimmän lopun. Mutta tämä vain
meidän kesken, ymmärrättehän."
"Josko ymmärrän. Sotamiehissämme on jo liiaksikin tällaista
uskoa, etten minä suinkaan mene sitä lisäilemään. Niin, väittävätpä
he suorastaan, että ylipäällystö aikoo myydä koko maan venäläisille."
"Niin, sitä he ovat väittäneet aina Lappeenrannan tapauksista
saakka. Se on tietysti, kuten hyvin tiedätte, kokonaan tuulesta
temmattu luulo ja meidän upseerien velvollisuus on saada
sotamiehet siitä vakuutetuiksi."
"Olen tehnyt voitavani sotilasten parissa", vastasi Löfving, "mutta
jos heistä yhden nurjan luulon saa nyhdetyksi, ilmestyy sijalle toinen
kahta hullumpi. Luottamus esivaltaan on pahasti järkähtänyt ja se
kai lieneekin tämän sodan huomattavin tulos, ainakin tähän saakka."
"Se on totta", myönsi Sprengtport. "Ja lisäksi tämä sota on saanut
aikaan sen, että se on entistä selvemmin osottanut meille niiden
kuussatavuotisten siteiden, jotka meitä liittävät Ruotsiin, pahasti
lahonneen."

38. Löfving säpsähti ja tuijotti ääneti majuria silmiin. Sitten lausui hän:
"Tekin, majuri, olette siis ajatellut sitä."
"Hm, luulenpa, että se ajatus on pesiytynyt jo sangen monen
suomalaisen sydämeen", vastasi majuri.
"Se on isonvihan ansiota", lausui siihen Löfving.
"Niin on, ja tämä sota heikontaa yhä enemmän niitä siteitä. Mutta
katsokaahan, Löfving!"
Sprengtport oli jonkun aikaa tuijottanut hautakumpuun, jonka
ääreltä sotilaat olivat jo lapioineen poistuneet. Eräästä kohti pisti
mullan alta näkyviin likainen ja luiseva nyrkki, jota Sprengtport osotti
Löfvingille.
"Se on nähtävästi sen sotilaan käsi, josta minä hautaustoimituksen
aikana en saanut katsettani irrotetuksi ja jonka näkeminen toi
mieleeni niin karmeita ajatuksia", lausui Löfving.
"Hm, minuun tekee sen vaikutuksen, kuin tuo nyrkki olisi koko
Suomen kansan puolesta työntynyt mullan alta esiin", virkkoi
Sprengtport. "Sietäisi olla esikunnan, herrain sitä näkemässä."
"Ja koko hallituksen", lisäsi Löfving.
"Niin, se olisi varmaankin esivallalle Tukholmassa terveellinen
memento!" lopetti Sprengtport.
Hän kiipesi jälleen satulaan ja lausui liikkeelle lähtiessään:
"Uutta aikaa kohti me joka tapauksessa kuljemme. Ennen pitkää
kääntyy historian lehti Suomen kansalle, mitä sitten tulevaisuus

39. mukanaan tuoneekaan."
"Voiko rehellisyyden ja uskollisuuden palkka olla muuta kuin
hyvä?" kysyi Löfving, joka asteli majurin ratsun rinnalla.
"Niin luulisi", vastasi Sprengtport, "ja parastahan meidän on
toivominen tulevaisuudelta, niin pimeältä kuin nyt kaikki näyttääkin."
He etääntyivät kylää kohti ja häipyivät räntäsateeseen.
Hautakumpu kohosi autiona kentän keskellä ja sen kupeesta
piipotti rannetta myöten lujaan puristunut, luiseva nyrkki.
Räntähiutaleita tippui nyrkille ja valui hiljalleen alas, muodostaen
likaisia juomuja pitkin kämmenselkää.
Syysiltana
Pari vuotta Turun rauhan jälkeen asteli eräänä syyspäivänä
Porvoon pitäjän Gammelbackan isäntä, Porvoon komppanian majuri,
Maunu Vilhelm Sprengtport talonsa pihalla ja haukotteli itsestään
päivällisunen tähteitä. Hohoi, kuinka pitkiksi ne kävivät nämä
alakuloiset syyspäivät miehelle, joka suurimman osan elämätänsä oli
istunut satulassa ja rientänyt taistelusta taisteluun. Pelikumppania ei
ollut läheisyydessä ja yksitoikkoiseksi kävi katsastaa töiden kulkua,
varsinkin kun huolellinen isäntärenki teki sen tarpeettomaksi.
Metsästelemäänkään ei hän kyennyt, sillä leini oli tehnyt jalat
kankeiksi ja muita ruumiinosia haittasivat monet vanhat haavat.
Kiltisti sai hän pysyä alallaan piha-aitauksen sisäpuolella ja vartoa
viimeistä marssiin-komentoa. Kohta täytti hän kuusikymmentä vuotta

40. ja tukka oli jo ohimoilta aivan valkea. Eikä ihmekään, sillä olipa hän
osaltaan kokenut niitä vaivoja, joita karoliinien osaksi oli niin
runsaasti suotu. Kahteen erään oli hän isonvihan vuosina ollut
vankeudessa Siperian äärillä, saaden toisella kertaa istua rautoihin
lyötynä pimeässä tornissa ja elää lähes pari vuotta pelkällä vedellä ja
leivällä. Rauhanteon jälkeen oli hän perheineen saanut nähdä nälkää
sekä myöhemmin elää kituutella luutnantin palkalla, vaikka olikin
majuri arvoltaan. Vasta viime sodan aikana hän oli saanut arvoaan
vastaavan virankin, kun sitä vastoin monet hänen entisistä
tovereistaan, joilla oli suhteita yläilmoissa, olivat jo aikoja kohonneet
eversteiksi ja kenraaleiksi. Mutta mitäpä siitä. Tasan ei käy onnen
lahjat ja pääasiahan oli, että hänellä nyt vanhoilla päivillään oli katto
päänsä päällä ja huoleton, joskin vaatimaton leipä syötävänä. Ja
kaupanpäällisiksi loppumaton varasto kirjavia muistoja eletyn elämän
varrelta, joilla sopi lyhentää pitkiä talvi-iltoja vanhan toverin
tavatessaan.
Hän haukotteli jälleen pitkään ja hartaasti, sytytti sitten suuren
piippunsa ja lähti känsäkeppiinsä nojaten astelemaan riihelle, jonne
rengit ajoivat pellolta kauroja. Sieltä lehahti vastaan kotoinen ja
unettava riihituoksu. Keltaiset kauralyhteet kahahtelivat sisään
syydettäessä ja varpuset räyskyttelivät katonräystäällä, odottaen
pääsevänsä maahan varisseiden jyvien kimppuun.
"Taitaa tulla hyvä kaurasato", sanoi majuri lyhdettä kourien.
"Hyvä tulee", vastasi renki. "Ainakin kaksikymmentä tynnyriä
lähtee alavainiosta."
"Onpa siinä hevosille rouskuttamista."
"On, ja vielä myytäväksikin."

41. Tähän katkesi tuo arkipäiväinen sananvaihto, rengin lähtiessä
uutta kuormaa hakemaan. Varpuset pyrähtivät räystäältä maahan ja
majuri lähti nousemaan takaisin pihaan.
Ilma oli tuollainen tyynen lakea syysilma, jolloin ei paista päivä,
mutta ei ole varsinaisesti pilvessäkään. Metsät alkoivat jo kellastua ja
tuolla ja täällä liipotteli irtautunut koivunlehti hiljalleen maahan.
Sänkivainioilla vaakkuivat varikset ja ylhäältä vastasi siihen omalla
sävelellään etelää kohti purjehtiva kurkilauma.
Pihaan päästyään silmäili majuri joka ilmansuunnalle, tarkasteli
alallaan pysyvää tuuliviiriä tallinpäädyssä ja seurasi sitten katseellaan
kurkiparvea, kunnes se häipyi näkyvistä. Alakuloinen ikävä yritti taas
purkautua pitkään haukotukseen, mutta se keskeytyi kuitenkin
alkuunsa, kun hän merenrantaan vievää tietä pitkin näki lähenevän
vieraan. Se astui keveästi ja terävään ja näytti herrasmieheltä.
Hyvillään asettui majuri kuistille istumaan ja odottamaan tulijaa.
"Astuu aivan kuin Hommanäsiläinen", ajatteli majuri, "mutta ei
suinkaan hän ole vielä ehtinyt Tukholmasta palata." Mutta kun vieras
oli päässyt pihaan, huomasi hän, että tulija oli kuin olikin
Hommanäsin isäntä, kapteeni Tapani Löfving.
"Katsopas vain!" huudahti majuri ihastuneena ja nousi tulijaa
tervehtimään. "Olen tässä ikävääni haukotellut ja katsellut joka
ilmansuunnalle, eikö mistään näkyisi tulevaksi puhekumppania ja nyt
tulit sinä, veikko, kuin taivaasta pudoten. Mutta kuinka sinä olet
ehtinyt jo Tukholmasta palata?"
"Hm, minä olen jo siksi monesti ja monenlaisella kyydillä kulkenut
Turun ja Tukholman välin, ettei se matka minulta pitkiä aikoja vie",
vastasi Löfving. "Jo toissa päivänä palasin kotiin ja koska arvelin

42. veljen täällä kovin kaipaavan shakkitoveria, niin päätin pistäytyä
tuomaan Tukholman terveisiä."
"Siinä teit sinä sangen veljellisesti, sillä kovin pitkiksi venyvät
nämä syysillat. Terve tulemastas vielä kerran ja käykäämme nyt
sisälle ottamaan tilkkanen vasta käynyttä oluttamme."
He astuivat majurin omaan huoneeseen, jonka kalustoon kuului
melkein koko seinän pituinen, kulunut nahkasohva, pari keinutuolia,
shakkipöytä ja piippuhylly. Seinällä riippui majurin miekka, pari
pistoolia ja musketti sekä kaksi kuparipiirrosta, joista toinen esitti
Kaarle kahdettatoista rusoposkisena nuorukaisena, päässä tuuhea
peruukki.
Saatuaan piiput palamaan istuutuivat he vastapäätä toisiaan ja
majuri kysyi:
"Tokko hyödyit mitään Tukholman matkastasi?"
"En kerrassaan mitään", vastasi Löfving. "Palasin sieltä päinvastoin
matkakulujani köyhempänä."
Löfving oli myöskin niitä unhotettuja suomalaisia karoliineja, jotka
isonvihan jälkeen saivat nälkää nähdä. Hänet oli kyllä korotettu
kapteeniksi, mutta mitään paikkaa vastaavine tuloineen hänelle ei
ollut löytynyt. Yli puolikymmentä vuotta oli hän elellyt ulkomaillakin,
missä hänen ansionsa paremmin tunnustettiin. Holsteinin herttua oli
näet maksanut hänelle kuutena vuotena eläkettä. Kun Ruotsin
hallitus ei hänen uudistettuihin pyyntöihinsä ollut mitään vastannut,
oli hän lopulta pyytänyt eroa Ruotsin alamaisuudesta, mennäkseen
syntymäkaupunkiinsa Narvaan ja ruvetakseen Venäjän palvelukseen.
Tämä oli vihdoinkin auttanut sen verran, että hänelle oli annettu

43. elinajakseen Hommanäsin tila Porvoon pitäjässä. Miekkamiehenä
kiireestä kantapäähän oli hän tietysti ottanut osaa viime sotaan,
vaikkakin ilman minkäänlaista palkkaa. Olipa hänet kerran
suorapuheisuutensa takia sekä epäiltynä sotilasten kiihottamisesta
vangittukin ja oli hän saanut viisi kuukautta virua kahleissa
Hämeenlinnassa. Sieltä jotenkuten vapaaksi päästyään sekä
Tukholmassa itsensä puhdistettuaan oli hän ehtinyt vielä mukaan
tuon onnettoman sodan loppunäytöksiin, puhdistaen muun muassa
Hailuodon vihollisista. Rauhan tultua oli hän taas elellyt maatilallaan.
Mutta kun tuo pieni ja huonossa kunnossa oleva tila ei antanut
riittävätä leipää hänen perheelleen, oli hän päättänyt vielä kerran
kääntyä vallanpitäjien puoleen, anoen arvoaan vastaavaa
upseerinvirkaa tuloineen tai eläkettä. Paremmin onnistuakseen oli
hän ystävänsä Sprengtportin neuvosta lähtenyt itse persoonallisesti
Tukholmaan.
"Hallitusherroilla on siellä tärkeämpääkin tehtävää kuin muistaa
meitä maan matosia täällä Suomen puolella", jatkoi Löfving. "Siellä
käy muuten kaikki entiseen tapaan. Hatut taistelevat myssyjä ja
myssyt hattuja vastaan ja vastapuoluelaisen kunnia ei siellä paljon
paina. Samanlaisia juonimaakareita ne ovat kummatkin, niin että
tästä puolin minä en aio pitää suden paremmin kuin lampaankaan
puolta."
"Hm, hm, saattaapa niin olla", hymähteli Sprengtport, siivilöiden
savuja tupakasta kellastuneiden viiksiensä läpi. "Mutta etkö
kääntynyt itse hänen majesteettinsa puoleen?"
"Mitäpä se olisi hyödyttänyt, sillä hänen majesteettinsa on
kuningas ilman valtaa. Säätyjen riidellessä ja valtaneuvosten
hallitessa ei hän tee muuta kuin syö ja lihoo. Tukholmalaiset

44. kertoivat hänen kuluttavan päiviään siten, että hän aamupuolen
päivää istuu ikkunan ääressä ja katsoo torille. Siihen kyllästyttyään
siirtyy hän peremmäksi huonetta ja kun yksi tuoli liiaksi lämpenee,
muuttaa hän toiselle tuolille. Siihen menee häneltä muu osa päivää.
Sitten hänellä on ne omat naisvehkeensä. Viimeksi kuuluu hän
pitäneen yhteyttä muutaman huonomaineisen kamarineitsyen
kanssa ja sanoivat kreivitär Tauben sen johdosta surreen itsensä
kuoliaaksi."
Löfving ruiskautti pitkän syljen uunin alle ja irvisti halveksivasti.
"Onpas sitä, onpas sitä", sanaili Sprengtport harvakseen. "Suuresti
ovat ajat muuttuneet siitä kun me olimme nuoria."
He maistoivat olutta, jota vanha palvelijatar oli tuonut, sytyttivät
jälleen pitkävartiset piippunsa ja savurenkaita puhallellen
keinahtelivat hetken ääneti.
"Suuresti ovat muuttuneet ajat ja olot, niin ettei kaikiste tahtoisi
silmiään uskoa", tarttui Löfving ystävänsä sanoihin. "Kuinka mahtava
olikaan Ruotsi meidän lapsuutemme aikana ja mitä siitä on nyt enää
jälellä! Ainoastaan varjo entisestä. Kuinka siellä nyt esimerkiksi
peljätään Venäjää, jota ennen kohdeltiin ylimielisellä halveksunnalla.
Sain muun muassa kuulla, että hallitus, ja varsinkin kruununprinssin
puolue, sillä sellainenkin siellä nykyään on entisten lisäksi, on
liittoaikeissa lähennellyt Preussin kuningasta, mutta kun keisarinna
Elisabet siitä tiedon saatuaan oli lausunut paheksumisensa ja
vihannut uudella sodalla, oli hallitus heti pelästyneenä peräytynyt
aikomuksestaan."
"Niin, niin, kovin on ränsistynyt Ruotsin leijona", myönsi
Sprengtport, "eikä se kykene enää kauan Suomea käpälissään

45. pitelemään. Kaksi kaistaletta on kotka jo riistänyt isänmaastamme ja
kolmannella kertaa menee se kokonaan."
"Usein olen muistanut niitä sanoja, jotka lausuit siellä Myllykylän
haudalla", virkkoi Löfving tovin kuluttua. "Ja yhä enemmän on
minulle alkanut sen jälkeen selvitä, että Suomi kulkee uutta
tulevaisuutta kohti. Mikä se sitten tulleekin olemaan, mutta yhteyttä
Ruotsin kanssa ei voi enää kovin pitkälle jatkua."
"Miksi eivät suomalaiset ota itselleen omaa kuningasta?" kuului
samassa kirkkaalla äänellä lausuttu kysymys sohvan nurkasta.
Hämmästyneinä kääntyivät molemmat sotavanhukset puhujaa
kohti. Heitä kohtasivat Sprengtportin nuorimman pojan, pienen Yrjö
Maunun kirkkaat ja totiset silmät. Hän oli edellisen keskustelun
aikana hiipinyt huoneeseen ja sijottunut isän nahkasohvalle,
kummankaan kiinnittämättä häneen mitään huomiota.
"Aijai, sinä pieni politikoitsija, mitä vaarallisia oppeja sinä julistat!"
torui isä hellästi. "Tule tänne nyt tervehtimään setä Löfvingiä ja
sitten saat mennä heti nukkumaan rangaistukseksi siitä, että
sekaannut vanhempain keskusteluun."
Kun Yrjö Maunu oli lähtenyt huoneesta, virkkoi Löfving:
"Siinä me sen nyt kuulimme. Onhan kirjotettu, että lasten ja
imeväisten suusta olet sinä totuuden valmistanut."
"Sinä, veikko, olet aina sangen kärkäs kaikellaisille ennustuksille ja
unennäöille", naurahti Sprengtport. "Mutta joka tapauksessa saa Yrjö
Maunu, jos hänellä elämän päiviä riittää, nähdä ja kokea paljon
sellaista, josta meillä on ainoastaan omat aavistuksemme. Niin, niin,

46. tulevan sukupolven tehtäväksi jää uuden Suomen luominen. Me
olemme jo tehtävämme tehneet ja saamme rauhassa odottaa
viimeistä hälytystä. Ja nyt shakkilaudan ääreen."
He siirsivät tuolinsa lähemmäs pöytää ja alkoivat syysillan
hämärtyessä asetella nappuloita paikoilleen.
Siteet katkeavat
"Hyvät herrat, jos minä olisin alusta alkain saanut olla ylimpänä
määrääjänä, niin me olisimme tällä hetkellä vielä koreasti Suomen
mantereella, niin, sen eteläosassa, ja Ruotsi olisi vielä pitkiksi ajoiksi
pysyttänyt Suomen yhteydessään."
Nämä sanat lausui maaliskuun 16 päivän iltana v. 1809
kenraalimajuri v. Döbeln kävellen tuimasti edestakaisin Eckeröön
pappilan salissa. Hän viskasi hansikkaansa vihaisesti pöydälle,
kohensi sidettä otsallaan ja alahuuli yrmysti esiin työntyneenä jatkoi
kävelyään. Hänen kuulijansa, esikuntapäällikkö eversti
Schultzenheim sekä armeijaosaston intendentti, eversti Fock,
hätkähtivät tästä odottamattomasta purkauksesta ja kumpikin etsi
turhaan soveliaita sanoja vastaukseksi tähän päällikkönsä omituiseen
ja arkaluontoiseen väitteeseen.
Viime päivinä olivat tapaukset seuranneet nopeasti toisiaan.
Döbeln oli pienine armeijoineen varustautunut lujaan
puolustusasemaan Ahvenan mantereelle, jota venäläisten uusi
ylipäällikkö, kenraali Knorring, mukanaan itse sotaministeri
Araktshejeff, läheni suurine valtausarmeijoineen, Heidän

47. tarkotuksenaan oli marssia suoraa päätä Tukholmaan ja pakottaa
siellä Ruotsi rauhantekoon.
Neljä päivää sitten oli v. Döbeln, kuultuaan venäläisten lähenevän
kolmelta suunnalta, pitänyt pääkortteerissaan Jomalassa tulisen
puheen joukoilleen, kehottaen heitä puolustautumaan viimeiseen
saakka. Mutta pari päivää sen jälkeen, kun kaikki oli jo valmiina
taistelua varten, oli hän saanut Tukholmasta herttua Kaarlen ja
Adlercreutzin allekirjottaman kirjeen, jossa ilmotettiin, että kuningas
oli erotettu valtaistuimelta sekä käskettiin hänen viipymättä
peräyttää joukkonsa Ruotsin mantereelle. Tästä tiedonannosta oli
hän silmittömästi suuttunut, sillä niin kykenemättömäksi hallitusta
hoitamaan kuin hän tiesikin kuninkaan, oli hän kuitenkin saattanut
toivoa sodan pitkittymistä sekä jotakin onnellista käännettä
tapausten kulussa niin kauan kuin itsepäinen Kustaa Aadolf oli
hallituksen ohjaksissa. Mutta nyt seuraisi varmasti pikainen ja tölppö
rauha sekä samalla Suomen luovuttaminen Venäjälle.
Tulistuksissaan tästä odottamattomasta asiain käänteestä oli hän
lähettänyt Tukholmaan eronpyynnin päällikkyydestä. Mutta sitä
odottaessaan täytyi hänen kumminkin totella saamiaan määräyksiä.
Niin katkeraa kuin hänestä olikin miekan lyönnittä jättää tämä
viimeinen kolkka Suomen suuriruhtinaskunnasta ryhtyi hän kuitenkin
järjestämään peräytymisretkeä. Joukot saivat käskyn kokoontua
Eckerööhön, josta sitten lähdettäisiin tuolle nelipenikulmaiselle
taipaleelle Ahvenanmeren yli.
Mutta venäläiset olivat tällä välin ehtineet uhkaavan lähelle.
Suurena puoliympyränä olivat he jo astuneet Ahvenan mantereelle ja
Döbelnin pieni armeija oli vaarassa milloin hyvänsä joutua

48. saarroksiin. Näytti miltei mahdottomalta ehtiä kuormasto, tykistö ja
sairaat kuljettaa Ruotsin puolelle.
Tässä tukalassa asemassa päätti Döbeln käyttää kieltään, kun
hänen ei kerta oltu sallittu miekalla asioitaan hoitaa. Niinpä oli hän
tänään aamusella noussut satulaan ja yhdessä everstiluutnantti
Lagerbringin kanssa ratsastanut Klemetsbyyhyn, missä oli
venäläisten pääkortteeri, saadakseen aikaan muutaman päivän
aselevon. Hän olikin onnistunut taivuttamaan kenraali Knorringin
kolmen päivän aselepoon, jonka kuluessa venäläiset pysyisivät
alallaan, mutta Döbelnin joukkoineen tuli jättää Ahvenanmaa. Mutta
juuri kun sopimus piti allekirjotettaman, saapui paikalle sotaministeri
Araktshejeff, joka keskustelujen aikana oli ollut ulkona joukkoja
tarkastamassa. Röyhkeästi hän purki tehdyn sopimuksen ja vaati
Döbelniä joukkoineen antautumaan vangiksi. Vimmastuneena
tällaisesta häikäilemättömyydestä joutui Döbeln kiivaaseen
sananvaihtoon venäläisten kenraalien kanssa ja lopuksi, äärimmilleen
kiihtyneenä, löi kätensä miekanhuotralle ja painaen hatun päähänsä
lähti muitta mutkitta pois. Pihalla satulaan noustessaan oli hänellä
kuitenkin malttia pyytää Lagerbringia, jolla oli sujuva ja kohtelias
käytös, jäämään venäläisten pääkortteriin sekä koettamaan
kaikenlaisilla keskusteluilla viivyttää venäläisten etenemistä.

49. Hevonen vaahdossa oli hän itse äsken saapunut Eckerööhön sekä
jakanut käskyjä liikkeelle lähdöstä. Kun hän sen jälkeen astui
pappilan saliin, näkyi hänen kasvoillaan ja kaikissa eleissään vielä
ankara kiihtymys, minkä syyksi kumpikin saapuvilla oleva upseeri
mielessään luki nuo hänen alussa mainitut kiivaat sanansa.
Lyhyin ja tuimin askelin edestakaisin kävellen sekä kiivaasti
heiluttaen vasenta kättään, jatkoi hän hetken kuluttua:
"Mutta kaikkihan on alusta aikain käynyt päin mäntyyn! Silloin
tällöin joku loistava yritys, joka kuitenkin kohta epäröimisellä ja
saamattomuudella pilattiin. Ja niin paljon miehuutta ja kuntoa kuin
Suomen sotajoukossa olikin! Mutta nyt se on kaikki tuhlattu
hukkaan. Kaikki mainiot tilaisuudet ja kaikki toimintahalusta palavat
voimat jätetty käyttämättä! Saamattomuutta, epäröimistä, hitautta ja
— niin, suoranaista anteeksiantamatonta tuhmuutta ylimmässä
johdossa! Kas, siinä siemenet niihin hedelmiin, joita me nyt päivä
päivältä saamme poimia. Mutta niinhän se on aina ollut, että milloin
kohtalo on nähnyt hyväksi ahdistaa jonkun valtakunnan vararikkoon,
silloin se on asettanut aasit valtapaikoille."
Hän pysähtyi, irrotti siteen otsaltaan ja painoi sormin ohimoaan,
jossa puoliavoimena punotti Porrassalmella saatu arpi. Hänen
terävissä silmissään hehkui kuumeenomainen tuli, kun hän
matalammalla äänellä, ikäänkuin itsekseen puhuen, jatkoi:
"Ja meillä ovat asioita johtaneet juuri sellaiset aasit, joiden korvien
läpi eivät edes toisten antamat järjelliset neuvot ole voineet tietä
löytää. Mitä! Emmekö vielä yhdennellätoista hetkellä olisi yhdellä
iskulla voineet muuttaa sodankulkua, jos olisi noudatettu minun
ehdotustani siirtää sotanäyttämö rohkealla vedolla Etelä-Suomeen?

50. Minun voittoni jälkeen Juuttaalla se olisi käynyt mainiosti päinsä.
Silloin olisi kaksikin tietä Päijänteen seutuville ollut vielä avoinna.
Mutta ei! Tuuma oli tietysti aivan liian uskalias. Varovaisuutta! Niin,
aasien varovaisuus on oikealla nimellään hitautta ja saamattomuutta.
Ja muutoin he ovat minun ehdotuksistani epäilleet aina, että täällä ei
kaikki ole muka oikein reilassa."
Döbeln viittasi otsaansa sekä naurahti lyhyesti ja katkerasti.
"Mutta miksi kaiken on pitänyt käydä näin?" huudahti hän hetken
kuluttua kiihkeästi ja pysähtyi upseerien eteen. "Miksi yksikään
kykenevämpi käsi ei ole tarttunut tapausten kulkuun? Miksi ei
Viaporissa paremmin kuin maa-armeijassakaan noussut ketään, joka
olisi sanonut: ei niin, mutta näin!"
"Niin, miksi ei esimerkiksi herra kenraali sitä tehnyt?" uskalsi
Schultzenheim hymyillen huomauttaa.
"Tepä sen sanoitte!" huudahti Döbeln ja jäi tuijottamaan
intendenttiään silmiin. — "Miksi en minä sitä tehnyt, vaikka se
lakkaamatta eli mielessäni ja vaikka minä tunsin niin hyvin omat
voimani kuin ulkonaiset olosuhteet monta kertaa myötäisiksi
vallankeikaukselle? Olihan sille hyvä maaperä siinä katkeruudessa,
joka jäyti useimpain mieltä armeijassa, kun asiain nähtiin menevän
päinvastoin kuin niiden olisi pitänyt. Ja kuitenkaan ei kukaan tehnyt
pienintäkään yritystä. Oliko se saamattomuutta? En tiedä, mutta
ainakin minut valtasi ratkaisevina hetkinä omituinen raukeemus,
aivan kuin jotakin näkymätöntä olisi tullut siihen väliin."
Syntyi pitempi äänettömyys, minkä kestäessä Döbelnin katse
levotonna harhaili tyhjyydessä, kuin etsien selitystä sille

51. salaperäiselle, joka oli estänyt häntä ratkaisevina hetkinä
toimimasta.
"Se oli kohtalo", keskeytti vihdoin Schultzenheim hiljaisuuden.
"Niin juuri, kohtalo se oli, itse Fatum!" huudahti Döbeln, pyörähti
sitten kantapäällään ja jatkoi, äänessään tyyntynyt ja alistuvainen
sävy: "Kohtalon vallat olivat päättäneet erottaa Suomen Ruotsista ja
siihen me, maan matoset, olemme saaneet tyytyä. Kohtaloa vastaan
on itse Bonapartekin voimaton, niin loistava sotapäällikkö kuin hän
onkin."
Hetken kuluttua oli Döbelnin äänessä sen tavallinen, kylmänkö
sävy, kun hän lausui:
"Niin, huomenna meidän, viimeisten ruotsalaisten, on jätettävä
tämä viimeinen lieve Suomen maata. Sitä ennen meille on kuitenkin
suotu yhden yön lepo."
Hän toivotti hyvää yötä ja enempää puhumatta poistui
makuuhuoneeseensa.
* * * * *
Kovan lumipyryn ja pakkasen vallitessa lähtivät seuraavana
aamuna viimeiset v. Döbelnin joukot hyvässä järjestyksessä
marssimaan länttä kohti. Kuormasto ja tykistö olivat jo aikaisemmin
lähteneet liikkeelle. Itse Döbeln kulki esikuntineen jälkijoukossa. Kun
he olivat saapuneet Eckeröön länsirannalle ja jälkijoukon sotilaat
parhaillaan marssivat alas jäätikölle, pysäytti Döbeln ratsunsa ja
kääntyi tähystämään itää kohti.

52. "Sinne jää nyt Suomi oman onnensa nojaan", virkkoi hän hetken
kuluttua. "Mikä lieneekin sen sitten oleva?"
"Tietysti siitä tekaistaan venäläinen kuvernementti", arveli eversti
Fock välinpitämättömästi.
"Ei!" huudahti Döbeln niin kiivaasti, että ympärillä olevat
hätkähtivät. "Minä, joka niin monena ratkaisun hetkenä olen nähnyt,
mihin suomalaiset kelpaavat, uskallan vakuuttaa, ettei heitä ole
häviöön määrätty. Heille on kohtalo asettanut oman osan historiassa,
mutta mitä laatua se on, sitä ei ole meidän suotu tietää."
Kun kaikki sotilaat olivat ehtineet alas jäälle, jatkoi Döbeln:
"Näin ne siis katkeavat seitsensatavuotiset siteet. Mutta: Sic
volvere Parcas!"
Hän kannusti hevostaan ja ajoi alas jäätikölle.
Virstan pituisena kapeana nauhakkeena liikehti pienoinen
sotajoukko, lähes ainoa, joka emämaasta oli Suomen avuksi
lähetetty, vaivaloisesti rosoisen jäälakeuden yli takaisin
isänmaahansa. Tuuli lennätti lumiryöppyjä pitkin aavaa jäätikköä ja
hetken kuluttua kohosi Sandgrundenin luona näkyviin sankka metsä
kasakan piikkejä kuin esikuvana siitä vallasta, jonka varjossa kohtalo
oli vielä vuosisadan ajan päättänyt kypsyttää Suomen kansaa sen
omaa itsenäistä tulevaisuutta varten.

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