Exam 2: Understanding the Environments of Business

GNP is the total value of all goods and services produced by a national economy within a given period,regardless of where the factors of production are located.

Although many people associate technology with manufacturing,it is also a significant force in the service sector.

From Confederation (1867)to 1981,Canada's total accumulated debt was only ________,but in the period 1981-1994,annual deficits were in the ________ range.

________ includes human knowledge,work methods,physical equipment,electronics and telecommunications,and various processing systems that are used in performing business activities.

Canada usually has a ______ balance of trade.It is therefore a ________ nation rather than a ________ nation.

Research and development (R&D)includes activities that are necessary to provide new products,services,and processes.Two types of R&D include

In recent years,the economic environment has been characterized by

The primary objective of an ESOP is to

Ben is unemployed,but he is currently in a training program designed to increase the skills he needs to perform the kinds of jobs that are available.Ben is experiencing __________ unemployment.

What is a process?

What are the three primary factors that threaten economic stability?

Political stability is an important factor in international firms because no business wants to set up shop in another country unless trade relationships with that country are well defined and stable.

The economy in Palau has been stagnant for some time.The national bank thinks that increasing the money supply will encourage investment within the country,but some economists oppose this idea,arguing that it will cause inflation.Which of the following would support the argument that increasing the money supply will cause inflation?

How is the effectiveness of the government's attempts to manage Canada's economy measured? Briefly explain each tool.

Socio-cultural factors influence the way workers in a society feel about their jobs; the job can have meaningful social significance or it can simply be a means to an end.

What is reflected in the real GDP?

Canada's R&D expenditures (as a percent of GDP)lag behind those of the U.S.because many Canadian businesses are subsidiaries of large U.S.companies,and those companies carry out their R&D in the United States.

The proportion of personal income that consumers spend on necessities like food and housing has declined during the past 40 years.

Which of the following best describes the term standard of living?

What is cyclical unemployment?