ADMN 1000H Chapter Notes - Chapter 6: Exchange Rate, Frictional Unemployment, Business Cycle
12 Feb 2017
School
Department
Course
Professor
Document Summary
Economic environment- the economic condition in which an organization operates. Key groups that make up an economic environment are individuals, business and the government. Individuals - decide how to spend their money and on what and since money is limited there is a opportunity cost with their spending choices. Opportunity cost- the cost of the best forgone alternative. 5 factors of production - land , labour,knowledge, capital and entrepreneurship. Labour - physical and mental effort workers provide to create good and services. Capital - includes physical capital like buildings, machines and equipments for producing goods and services. It doesn"t include financial capital like money, stock or bonds. Knowledge- human capital that workers accumulate in terms of skill or on job experience. Knowledge based economies- economies that involve the production, distribution and consumption of knowledge and information. Entrepreneurs- individuals who combine the factors of productions in the pursuit of profits and indirectly serving the interest of society.
