BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Both unemployment and production increase
|
|
|
Total demand exceeds total supply
|
|
|
Total supply exceeds demand
|
|
|
The economic growth rate increases rapidly
|
Detailed explanation-1: -The demand is low and supply is high for unskilled workers in most age groups. Decreased production and increased unemployment occur during recessions.
Detailed explanation-2: -MANAGING THE ECONOMY Economic Growth occurs when a country’s output exceeds its population growth. As a result, more goods and services are available.
Detailed explanation-3: -A market economy is an economic system in which individuals, rather than the state, own most of the resources. This includes land, labor, and capital. In a market economy, individuals control the use and price of these resources through voluntary decisions made in the marketplace.
Detailed explanation-4: -Potential output is the maximum amount of goods and services an economy can turn out when it is most efficient-that is, at full capacity. Often, potential output is referred to as the production capacity of the economy.
Detailed explanation-5: -Defining a Recession Many economists define a recession as a period of time where the real GDP (Gross Domestic Product) goes down for at least two consecutive quarters-or 6 months.