MGTA01H3 Chapter 2: Chapter 2

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Purpose of an economic system is to assemble/organize resources; make things people want; and to create profits for businesses. Gross domestic product (gdp) is the value of all goods and services produced in a country in one year. The larger the gdp the more workers using more resources and producing more things . Gross national product (gnp) is the value of all goods and services produced by a firm in that country (ex. Canadian businesses manufacturing in china) in a country no matter the location of the production. Countries with the largest gdp respectfully; the united states of america, china, japan, A recession occurs when a country"s gdp falls for two consecutive terms. Some countries are richer than others because they possess more and relatively cheaper natural resources; they have more money and better technology; they have better trained and educated workers. Productivity gives countries the ability to make things quickly and efficiently.