Business functions and The Value chains

Gross Domestic Product (GDP)

A key indicator of a country's economic performance, measuring the total value of all goods and services produced.

Productivity

The efficiency with which outputs are produced from inputs.

Business Cycle

The fluctuation in economic activity over time, typically involving periods of expansion and contraction.

Fiscal Policy

Government adjustments to spending levels and tax rates to influence the economy.

Monetary Policy

The process by which a central bank manages the money supply and interest rates to influence economic activity.

Supply and Demand Curves

Graphs that represent the relationship between the quantity of goods that producers are willing to sell at various prices and the quantity that consumers are willing to buy.

Equilibrium

The point at which the supply of a good matches its demand.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Consumer Surplus

The difference between what consumers are willing to pay for a good and what they actually pay.