MGTA01H3 Chapter 2: MGTA03 – Chapter 2
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MGTA01H3 Full Course Notes
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Mgta03 chapter 2: understanding the environment of business. *define and explain all terms for chapters 1 and 2* The purpose of an economic system: to assemble/organize resources, to make things that people want, encouraging people to buy what they want, creating profits for suppliers. Gross domestic product =a large number formed from a crude measure of all the things made here at home. Gross domestic product (gdp): the dollar value of all the goods and services produced in a country in one year. Gdp only asks: did we make a lot in the last year? and what is the dollar value of what was produced? . Gdp does not ask: is what we made harmful or bad? . The larger the gdp: the more workers there are, the more resources being used, the more things of value being produced. Gdp growth: more people producing more (economic expansion) Falling gdp: fewer people buying less (economic recession)
