Chapter 2 (2.1-2.5) Flashcards
external environment
factors beyond an organizations boundries (no control)
organizational boundaries
separates the organization from environment
ALL ENVIRONMENTS
economic, tech, politcal-legal, socio-cultural, business, global, emerging challenges and opportunities
KEY ECONOMIC GOALS
economic growth, economic stability, full employment
business cycle
pattern of short term ups and downs (peak, recession, trough, recovery)
aggregate output
measure of economic growth; total quantity of goods and services produced
standard of living
total quality/quantity of goods and services that a country’s citizens can purchase with their currency
productivity
measure of growth that compares the output of an economic system with the resources that are needed to produce the output
gross national product (GNP)
value of all goods and services produced by a national economy within given period regardless of production location
gross domestic product (GDP)
value of all goods and services produced by a national economy within given period with domestic factors
balance of trade
value of all exports - imports
national debt
money government owes its creditors
THREATS to economic stability
inflation, deflation, unemployment
inflation
increase in price in an economic system (CPI used to measure)
deflation
decrease in price
