Business Essentials, 12/e

Economic Indicators

1. Objective 1-4 Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system.

Because economic forces are so volatile and can be affected by so many things, the performance of a country’s economic system varies over time. Sometimes it gains strength and brings new prosperity to its members (this describes the U.S. economy during the early years of the twenty-first century); other times, it weakens and damages fortunes (as was the case during 2009–2010). And, at still other times, it provides moderate growth, helping some members of society but not others (as is the case at present). Clearly, then, knowing how an economy is performing is useful ...