MGTA01H3 Chapter 5: MGTA01 - Chapter 5

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Chapter 5: understanding the business environment: measuring performance. One purpose of an economic system is to create meaningful employment. Purpose of a(cid:374) e(cid:272)o(cid:374)o(cid:373)i(cid:272) s(cid:455)ste(cid:373) is to produ(cid:272)e the thi(cid:374)gs that a (cid:272)ou(cid:374)tr(cid:455)"s people (cid:374)eed a(cid:374)d (cid:449)a(cid:374)t. Gross domestic product (gdp): the total value of all the goods and services that are produced within a country, during any given period. U. s. a. has the largest gdp (16. 8 trillion) , china (9. 24 trillion) Limitations to gdp what does it not yell us. Gdp tells us about the size of a nations economy. Gdp does not tell us (cid:449)hether a (cid:272)ou(cid:374)tr(cid:455)"s output is gro(cid:449)i(cid:374)g or de(cid:272)li(cid:374)i(cid:374)g. it does (cid:374)ot tell us if the (cid:272)itize(cid:374)s of the country are rich or poor; or if all the resources are being used. Gdp growth: the percentage change, form one period to the next, in the total value of all the goods and services produced within a country.