Kirsten, a Manager, Is Writing an Analysis of Her Employer's

question 42

Multiple Choice

Kirsten, a manager, is writing an analysis of her employer's current and possible future revenues. Which of the following could she identify as an economic factor in her firm's external general environment?

• A) the government regulations and laws in the country in which the firm exists
• B) the stage of the business cycle that the country is in
• C) the values and norms prevalent in the society in which the firm operates
• D) the bargaining power of the firm's suppliers and buyers

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Definitions:

Potential GDP

The highest level of real GDP that can be sustained over the long term without increasing inflation, assuming full employment of resources.

Expansionary Policy

A macroeconomic policy that aims to stimulate the economy by increasing government spending, decreasing taxes, or lowering interest rates to boost economic activity.

Anticipated Policy

Economic or governmental policies expected to be implemented in the future, which can influence current economic behaviors and decisions.

Wages

The compensation paid to employees for their labor, typically quantified as an hourly, daily, or piece-rate basis.