Term
| Domestic Business Environment |
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Definition
| the environment in which a firm conducts it's operations and derives it's revenue. |
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Term
| Political-Legal Environment |
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Definition
| the relationship between business and government. |
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Term
| Global Business Environment |
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Definition
| the international forces that affect a business. |
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Term
| Technological Environment |
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Definition
| all the ways by which firms create value for their customers. |
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Term
| Sociocultural Environment |
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Definition
| the customs, mores, values, and demographic characteristics of the society in which an organization functions. |
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Term
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Definition
| relevant conditions that exist in the economic system in which a company operates. |
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Definition
| the resources used in the production of goods and services. |
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Term
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Definition
| physical and mental capabilities of people as they contribute to economic production. |
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Term
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Definition
| funds needed to create and operate a business enterprise. |
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Term
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Definition
| individual who accepts the risks and opportunities involved in creating a new business venture. |
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Definition
| tangible items that businesses use in the conduct of their business. |
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Term
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Definition
| relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. (i.e. North Korea) |
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Term
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Definition
| economy in which individuals control productions and allocation decisions through supply and demand. |
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Definition
| private ownership and encourages entrepreneurship by offering profits as an incentive. |
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Term
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Definition
| buyers will purchase (demand) more of a product as it's price drops and less of a product as it's price rises. |
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Term
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Definition
| producers will offer (supply) more of a product for sale as it's price rises and less of a product as it's price drops. |
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Term
| Market Price (Equilibrium Price) |
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Definition
| profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal. |
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Term
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Definition
| economic system that allows individuals to pursue their own interests without undue governmental restriction. |
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Definition
| vying among businesses for the same resources or customers. |
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Term
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Definition
| market or industry characterized by numerous small firms producing an identical product. |
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Term
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Definition
| market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors. |
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Term
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Definition
| market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products. |
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Term
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Definition
| market or industry in which there is only one producer that can therefore set the prices of it's products. |
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Term
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Definition
| a statistic that helps assess the performance of an economy. |
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Term
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Definition
| short-term pattern of economic expansions and contractions. |
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Term
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Definition
| the total quantity of goods and services produced by an economic system during a given period. |
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Term
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Definition
| the total quantity and quality of goods and services people can purchase with the currency used in their economic system. |
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Term
| Gross Domestic Product (GPD) |
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Definition
| total value of all goods and services produced within a given period by a national economy through domestic factors of production. |
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Term
| Gross National Product (GNP) |
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Definition
| 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. |
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Term
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Definition
| gross domestic product (GDP) adjusted to account for changes in currency values and price changes. |
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Term
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Definition
| gross domestic product (GDP) measured in current dollars or with all components valued at current prices. |
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Term
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Definition
| the principle that exchange rates are set so that the prices of similar products in different countries are about the same. |
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Term
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Definition
| a measure of economic growth that compares how much a system produces with the resources it needed to produce it. |
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Term
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Definition
| the economic value of all the products that a country exports minus the economic value of all the products it imports. |
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Term
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Definition
| condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate. |
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Term
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Definition
| occurs when widespread price increases occur throughout an economic system. |
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Term
| Consumer Price Index (CPI) |
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Definition
| a measure of the prices of typical products purchased by consumers living in urban areas. |
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Term
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Definition
| a period during which aggregate output, as measured by GDP, declines. |
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Term
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Definition
| a prolonged and deep recession. |
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Term
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Definition
| policies that a government uses to direct how it collects and spends revenue. |
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Term
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Definition
| policies that a government uses to direct how it collects and spends revenue. |
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Term
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Definition
| government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices. |
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