Midterm 2, MGM 101
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1. External Environ- Consists of everything outside an organization that might affect it
ment
2. Organizational Separates the organization from it's environment; it's everything outside an orga-
boundaries nization's boundaries that might affect it
3. Economic Envi- Conditions of the economic system in which an organization operates
ronment
4. Aggregate out- Total quantity of goods and services produced by an economic system during a
put given period
5. Business cycle Pattern of short term ups and downs (expansion and contractions) in an economy
6. Gross Domestic Total value of all goods and services produced within a given period by a national
Product (GDP) economy through domestic factors of production
7. Business Cycle's Peak, Recession, Through, Recovery
4 Phases
8. Gross National Total value of all goods and services produced by a national economy within a
Product (GNP) given period regardless of where the factors of production are located
9. Real Growth Growth rate of GDP adjusted for inflation and changes in the value of a country's
Rates currency
10. GDP per capita Gross domestic product per person (Total GDP divided by total population)
11. Real GDP GDP calculated to account for changes in currency values and price changes
12. Purchasing Pow- The principle that exchange rates are set so that the prices of similar products in
er Parity different countries are about the same
13. Productivity A measure of economic growth that compares how much a system produces with
the resources needed to produce it
, Midterm 2, MGM 101
Study online at https://quizlet.com/_cajr9z
14. Balance of Trade The total of a country's exports minus its imports
15. National Debt The total amount of money that a country owes its creditors
16. Budget Deficits The result of the government spending more in one year than it takes in during
that year
17. Inflation Occurrence of widespread price increase throughout the economic system
18. Consumer Price A measure of the prices of typical products purchased by consumers living in
Index (CPI) urban areas
19. Deflation A period of generally falling prices
20. unemployment The level of joblessness among people actively seeking work in an economic
system
21. Fiscal Policies Policies used by a government regarding how it collects and spends revenue
22. Monetary Poli- Policies whereby the government controls the size of the nation's money supply.
cies
23. Research and De- Those activities that are necessary to provide new products, services, and process-
velopment es.
24. Political-Legal Conditions reflecting the relationship between business and government, usually
Environment in the form of government regulation.
25. Socio-cultural en- Conditions including the customs, values, attitudes, and demographic character-
vironment istics of the society in which an organization functions.
26. Micheal Porter's Model used to analyze competitive situations in an industry
Five Forces
Study online at https://quizlet.com/_cajr9z
1. External Environ- Consists of everything outside an organization that might affect it
ment
2. Organizational Separates the organization from it's environment; it's everything outside an orga-
boundaries nization's boundaries that might affect it
3. Economic Envi- Conditions of the economic system in which an organization operates
ronment
4. Aggregate out- Total quantity of goods and services produced by an economic system during a
put given period
5. Business cycle Pattern of short term ups and downs (expansion and contractions) in an economy
6. Gross Domestic Total value of all goods and services produced within a given period by a national
Product (GDP) economy through domestic factors of production
7. Business Cycle's Peak, Recession, Through, Recovery
4 Phases
8. Gross National Total value of all goods and services produced by a national economy within a
Product (GNP) given period regardless of where the factors of production are located
9. Real Growth Growth rate of GDP adjusted for inflation and changes in the value of a country's
Rates currency
10. GDP per capita Gross domestic product per person (Total GDP divided by total population)
11. Real GDP GDP calculated to account for changes in currency values and price changes
12. Purchasing Pow- The principle that exchange rates are set so that the prices of similar products in
er Parity different countries are about the same
13. Productivity A measure of economic growth that compares how much a system produces with
the resources needed to produce it
, Midterm 2, MGM 101
Study online at https://quizlet.com/_cajr9z
14. Balance of Trade The total of a country's exports minus its imports
15. National Debt The total amount of money that a country owes its creditors
16. Budget Deficits The result of the government spending more in one year than it takes in during
that year
17. Inflation Occurrence of widespread price increase throughout the economic system
18. Consumer Price A measure of the prices of typical products purchased by consumers living in
Index (CPI) urban areas
19. Deflation A period of generally falling prices
20. unemployment The level of joblessness among people actively seeking work in an economic
system
21. Fiscal Policies Policies used by a government regarding how it collects and spends revenue
22. Monetary Poli- Policies whereby the government controls the size of the nation's money supply.
cies
23. Research and De- Those activities that are necessary to provide new products, services, and process-
velopment es.
24. Political-Legal Conditions reflecting the relationship between business and government, usually
Environment in the form of government regulation.
25. Socio-cultural en- Conditions including the customs, values, attitudes, and demographic character-
vironment istics of the society in which an organization functions.
26. Micheal Porter's Model used to analyze competitive situations in an industry
Five Forces
