MGMT 1000 - Chapter 2 Final Review
Exam Questions With Complete Correct
Solutions.
External Environment - Answer Everything outside an organization's boundaries that might effect it
Economic Environment - Answer Conditions of the economic system in which an organization operates
Aggregate Output - Answer Total quantity of goods and services produced by an economic system
during a given period
Business Cycle - Answer Pattern of short-term ups and downs (expansions and contractions) in an
economy
Gross Domestic Product (GDP) - Answer Total value of all goods and services produced within a given
period by a national economy through domestic factors of production
Gross National Product (GNP) - Answer Total value of all goods and services produced by a national
economy within a given period regardless of where the factors of production are located
GDP Per Capita - Answer Gross domestic product per person
Real GDP - Answer GDP calculated to account for changes in currency values and price changes
Purchasing Power Parity - Answer Principle that exchange rates are set so that the prices of similar
products in different countries are about the same
Productivity - Answer Measure of economic growth that compares how much a system produces with
the resources needed to produce it
Exam Questions With Complete Correct
Solutions.
External Environment - Answer Everything outside an organization's boundaries that might effect it
Economic Environment - Answer Conditions of the economic system in which an organization operates
Aggregate Output - Answer Total quantity of goods and services produced by an economic system
during a given period
Business Cycle - Answer Pattern of short-term ups and downs (expansions and contractions) in an
economy
Gross Domestic Product (GDP) - Answer Total value of all goods and services produced within a given
period by a national economy through domestic factors of production
Gross National Product (GNP) - Answer Total value of all goods and services produced by a national
economy within a given period regardless of where the factors of production are located
GDP Per Capita - Answer Gross domestic product per person
Real GDP - Answer GDP calculated to account for changes in currency values and price changes
Purchasing Power Parity - Answer Principle that exchange rates are set so that the prices of similar
products in different countries are about the same
Productivity - Answer Measure of economic growth that compares how much a system produces with
the resources needed to produce it
