Economic Factors
Definition
These are elements that have an impact on an economy or business operations within it. They include things like inflation rates, interest rates, foreign exchange rates, unemployment levels, etc.
Analogy
Economic factors are like weather conditions for a picnic. Just as wind speed, temperature or chance of rain can affect your outdoor plans, economic factors can influence how businesses operate and economies perform.
Related terms
Inflation Rate: The rate at which general level of prices for goods and services is rising.
Interest Rates: The proportion of a loan charged as interest to the borrower.
Gross Domestic Product (GDP): The total value of all goods produced and services provided in a country during one year.
"Economic Factors" appears in:
Subjects (2)
Study guides (1)
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.