Chapter 2

Question 1

Managerial and Financial Analysis

Question 2

ECONOMIC ENVIRONMENT

Question 3

environment.

Question 4

The economic environment refers to external factors and the broader economic trends that can

Question 5

impact a business. Economic environment can be classified into microeconomic and macroeconomic

Question 6

Economics Defle eonom

Question 7

Eonomy and the Business Perspective

Question 8

Microeconomics Dne

Question 9

Tie the study of how to allocate scare resources to satisfy potentially unlimited wants. The subject

Question 10

of economics might be split into:

Question 11

CHAPTER 2

Question 12

Micro means small. It deals with the behaviour of an individual and a firm. e4 demand

Answer 12

supp

Question 13

Macroeconomics Deine macroeconomjs

Question 14

Real

Question 15

Prosperity

Question 16

Recoveny+

Question 17

lohat S eo nomil

Question 18

Macro means large. It is a study of economy as a whole. It is concerned with national income

Question 19

economic growth

Answer 19

rate ofinflat ion

Question 20

INDICATORS OF PHASES OF ECONOMIC / BUSINESS CYCLE

Question 21

ak)

Question 22

The focus of this chapter is macro-economic factors that are analysed on the basis of economic

Question 23

indicators.

Question 24

imi ted at Ke amout

Question 25

tno econe)

Question 26

Recession-

Question 27

The economic cycle: It is the natural fluctuation ofeconomy between periods of growth and eon

Question 28

recession. Factors such as GDP

Answer 28

interest rate

Question 29

help to determine the current stage of economic cycle.

Question 30

Olat are he hca

Question 31

elonom

Question 32

* When national income increases from one year to the next

Answer 32

there is economic growth.

Question 33

When national income falls from one year to the next

Answer 33

there is economic recession (or in extreme

Question 34

cases

Answer 34

economic decline)

Question 35

Down um

Question 36

(Trough)

Question 37

enyiroment

Question 38

(Peak)

Question 39

-Recovery

Question 40

Con s

Question 41

GOP

Question 42

Time