MGTA01H3 Chapter Notes - Chapter 5: Business Cycle, Underemployment, Lorenz Curve

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Bill Mc Conkey

Document Summary

Mgta01 chapter 5: understanding the business environment: measuring performance. Judging the effectiveness of an economic system by observing: ho(cid:449) (cid:373)u(cid:272)h goods a(cid:374)d se(cid:396)(cid:448)i(cid:272)es it"s p(cid:396)odu(cid:272)i(cid:374)g. Increasing or decreasing availability of goods and services provided to the population: quantity of goods and services available per person. If the goods and services are distributed equally among the population. Measuring total production gross domestic product: gross domestic product (gdp): the total value of all of the goods and services that are produced within a country, during any given period, the us has the largest gdp, followed by china. In terms of canada, we have a medium sized population but a large economy. Limitations of gdp what it does not tell us: gdp o(cid:374)l(cid:455) tells us a(cid:271)out the size of a (cid:374)atio(cid:374)"s e(cid:272)o(cid:374)o(cid:373)(cid:455) It does(cid:374)"t tell us a(cid:271)out a (cid:272)ou(cid:374)t(cid:396)(cid:455)"s output g(cid:396)o(cid:449)th or decline, a(cid:271)out its (cid:272)itize(cid:374)"s (cid:449)ealth, nor whether all of the (cid:272)ou(cid:374)t(cid:396)(cid:455)"s (cid:396)esou(cid:396)(cid:272)es a(cid:396)e (cid:271)ei(cid:374)g e(cid:395)uall(cid:455) (cid:271)us(cid:455) a(cid:374)d p(cid:396)odu(cid:272)ti(cid:448)e.