Understanding the Environments of...
True or False

1 .       The external environment consists of everything inside and outside an organization's boundaries that might affect it. 


2 .       The two key goals of the U.S. economic system are economic growth and economic stability. 


3 .       When the population grows more quickly than output, output per capita goes up and the system provides relatively more of the goods and services that people want. 


4 .       GDP or Gross Domestic Product refers to 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. 


5 .       Purchasing power parity gives us an idea of what people can actually buy with the financial resources allocated to them by their respective economic systems. 


6 .       A positive balance of trade results when a country exports more than it imports. 


7 .       When unemployment is high, there is a shortage of labor available for businesses to hire. 


8 .       According to your text, economists predict that the most successful businesses will be those that are able most effectively to master new technologies and keep abreast of their competitors. 


9 .       Businesses have increasingly found that they can be more competitive if they can systematically increase cycle times. 


10 .       In the United States, there is very little regulation of business activity. 


11 .       In some countries, accepting bribes for political favors is an accepted way of doing business. 


12 .       A firm's core competencies are the skills and resources with which it competes best and creates the most value for owners. 


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