ADMS 1000 Chapter Notes - Chapter 6: Financial Statement, Structural Unemployment, Producer Price Index

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Reading 5 - chapter 6 - economic forces. Economic environment: the economic conditions in which an organization operates. Key groups that make up an economic environment are individuals, businesses, and the government. Individuals forced to make spending decisions because money is limited resource. Decisions on daily necessities of life such as food, clothing and dental care, to more luxurious items. Opportunity cost: the cost of the best foregone alternative. Choosing to purchase certain goods and services automatically precludes the possibility of purchasing others instead. Five factors of production: the five key inputs in an organization, which include natural resources, labour, capital, knowledge, and entrepreneurs: natural resources: one of the five factors of production. Includes land and raw materials that are found either below or above the ground, such as soil, rocks, minerals, vegetables, and so on. Can include living organisms like fish and agricultural producs: labour: one of the five factors of production.