The Economic Environments Facing Business.ppt

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opyright2013pearsoneducation,inc.publishingasprenticehall,4-24,grossnationalincome,grossnationalincome(gni)thebroadestmeasureofeconomicactivityforacountrygrossnationalproduct(gdp)thetotalvalueofallfinalgoodsandservicesproducedwithinanationinaparticularyeargrossdomesticproduct(gdp)thetotalmarketvalueofgoodsandservicesproducedbyworkersandcapitalwithinanationsborders,copyright2013pearsoneducation,inc.publishingasprenticehall,4-25,improvinganalysis,gnidatashouldbeadjustedforthegrowthrateoftheeconomythenumberofpeopleinacountrythelocalcostofliving,copyright2013pearsoneducation,inc.publishingasprenticehall,4-26,improvinganalysis,gnipercapita,2009,copyright2013pearsoneducation,inc.publishingasprenticehall,4-27,improvinganalysis,gnipercapitaadjustedforpurchasingpowerparity,copyright2013pearsoneducation,inc.publishingasprenticehall,4-28,broaderconceptionsofperformanceandpotential,greeneconomicsgaugeeconomicperformanceintermsoftheeffectofcurrentchoicesonlong-termsustainabilitysustainabledevelopmentmeettheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneedshappynomicsimportanceofemotionalprosperityinadditiontofinancialprosperity,copyright2013pearsoneducation,inc.publishingasprenticehall,4-29,featuresofaneconomy,managersshouldalsoconsiderinflationunemploymentdebtincomedistributionpovertybalanceofpayments,copyright2013pearsoneducation,inc.publishingasprenticehall,4-30,inflation,inflationameasureoftheincreaseinthecostoflivingdeflationwhenpricesforproductsgodownnotupreflationincreasethemoneysupplyandreducetaxestoaccelerateeconomicactivity,copyright2013pearsoneducation,inc.publishingasprenticehall,4-31,unemployment,unemploymentrateshareofunemployedworkersseekingemploymentforpayrelativetothetotalcivilianlaborforcemiseryindexthesumofacountrysinflationandunemploymentrates,copyright2013pearsoneducation,inc.publishingasprenticehall,4-32,debt,debtthetotalofagovernmentsfinancialobligationsinternaldebtexternaldebtgrowingpublicdebtsignalstaxincreasesreducedgrowthrisinginflationincreasingausterity,copyright2013pearsoneducation,inc.publishingasprenticehall,4-33,incomedistribution,incomedistributionestimatestheproportionofthepopulationthatearnsvariouslevelsofincomeginicoefficientmeasurestheextenttowhichthedistributionofresourcesdeviatesfromaperfectlyequaldistribution,copyright2013pearsoneducation,inc.publishingasprenticehall,4-34,poverty,povertythestateofhavinglittleornomoneyandfewornomaterialpossessionsextremepovertylessthan$1.25perdaymoderatepovertylessthan$2.00perdaytodaytheworldpopulationis80%poor,10%middleincome,and10%richbaseofthepyramidfrugalengin