The General Environment Includes Those Sectors That Might Not Have

question 28

True/False

The general environment includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it.

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Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service, usually set below the equilibrium price to make goods more affordable.

Excess Demand

A situation where the quantity demanded of a good exceeds the quantity supplied at a given price, often leading to upward pressure on prices.

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, leading to a stable market condition.

Minimum Wage

The lowest legal wage that can be paid to most workers.