BUS 5 Strategic Planning (1) Flashcards
1
Q
Affect short run aggregate supply
A
- Changes in input (resource) prices
* Supply shocks
2
Q
GDP expenditure approach
A
*Sum total exp in domestic economy
G ovt purchases I nvestment (private / domestic) C onsumpion (personal exp) E xports (net exp-imp)
3
Q
GDP income approach
A
*Sum value of resource costs and incomes generated during period
I ncome of proprietors
P rofits corps I nterest (net) R ental income A djustments (net foreign income) T axes (indirect business taxes) E mployee comp (wages) D epreciation (cap consumption allowance)
4
Q
Nominal vs Real GDP
A
- Nominal = GDP current dollars
- Real DGP = Nominal GDP / GDP Deflator (price index) x 100
- Real interest rate = nominal - inflation
5
Q
Demand Curve
A
*Demand inverse of Price
*WRITEN Wealth Related goods Income (consumer) Tastes (consumer) Expectations Number (buyers in market)
6
Q
Supply Curve
A
*Price direct of Quantity
*ECOST Expectation (price supply firm) Costs (production) Other goods (demand) Subsidies (or taxes) Technology
7
Q
Cross elasticity of demand (supply)
A
- % change in quantity of good due to price change of another good
- Quantity Demanded C=% change # units (supply or demand) X / % change price of Y
8
Q
Porter 5 external forces
A
- Barriers market entry
- Market competitiveness
- Existence of substitutes
- Bargaining power of customers
- Bargaining power of suppliers
9
Q
Porter 4 factors affect global enviroment
A
- Factor of production (strong set of factors of production, skilled labor force)
- Domestic demand (Demand high)
- Related and supporting industries (material inputs exist within the nation)
- Firm strategy structure and rivalry (laws and regulations)
10
Q
Monopoly
Monopolistic
Oligopolistic
A
Monopoly: Marginal Rev = Marginal Cost
Monopolistic: Different Products
Oligopolistic: Significant Barriers, Fixed Prices, Small Number of firms with majority over market
