3rd Six Weeks

Question 1

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal or real terms, the latter of which is adjusted for inflation.

Answer 1

Economic Growth

Question 2

A quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Often expressed as a percentage, it indicates a decrease in the purchasing power of a nation’s currency.

Answer 2

Inflation

Question 3

The share of the labor force that is jobless, expressed as a percentage.

Answer 3

Unemployment Rate

Question 4

This measure records nation’s transactions with the rest of the world – specifically its net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments – over a defined period of time, such as a year or a quarter.

Answer 4

Current account

Question 5

This means that the general price level in an economy does not change much over time. In other words, prices neither go up or down; there is no significant degree of inflation or deflation.

Answer 5

Price Stability

Question 6

Voluntary private household consumption, or the exchange of money for goods and services in an economy.

Answer 6

Consumer Spending

Question 7

The total value of all goods and services produced.

Answer 7

Gross Domestic Product

Question 8

An economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.

Answer 8

Capitalism

Question 9

The monetary reward business owners receive in return for taking the risk involved in starting a business.

Answer 9

Profit Motive

Question 10

The split between the capitalist class, which own the business, and the working class.

Answer 10

Two-Class System

Question 11

The rivalry between companies selling similar products and services.

Answer 11

Competition

Question 12

Where marketers develop different price strategies to beat the competition.

Answer 12

Price Competition

Question 13

Where marketers try to promote the product by exhibiting its distinguishing features.

Answer 13

Non-Price Competition

Question 14

A financial institution that accepts deposits and provides security and convenience to their customers.

Answer 14

Commercial Banks

Question 15

A financial intermediary that performs a variety of services for businesses and some governments.

Answer 15

Investment Banks

Question 16

A company that exists to pool risk by collecting premiums from a large group of people who want to protect themselves and/or their loved ones against a particular loss, such as a fire, car accident, illness, lawsuit, disability or death.

Answer 16

Insurance Companies

Question 17

An intermediary between buyers and sellers to facilitate securities transactions.

Answer 17

Brokerages

Question 18

A corporation or a trust through which individuals invest in diversified, professionally managed portfolios of securities by pooling their funds with those of other investors.

Answer 18

Investment Companies

Question 19

A legally binding contract documenting the terms of a loan agreement, outlining all of the terms associated with the loan.

Answer 19

Credit Agreement

Question 20

Business risks such as fires and other unforeseen events that can force vulnerable businesses to relocate or close.

Answer 20

Business Interruption

Question 21

Risk of damage to or the destruction of property, caused either by a person who is not its owner or by natural phenomena.

Answer 21

Business Risk: Property Loss

Question 22

Risk of having to provide medical treatment costs and lost productivity, inflating business insurance premiums.

Answer 22

Business Risk: Injury

Question 23

Companies being at risk of lawsuits for accidental injury, libel or slander and other unanticipated results of day-to-day business.

Answer 23

Business Risk: Liability

Question 24

A business being instantly crippled by a loss of data or data theft.

Answer 24

Business Risk: Security Breach

Question 25

The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact.

Answer 25

Risk Management

Question 26

Coverage that protects businesses from losses due to events that may occur during the normal course of business.

Answer 26

Business Insurance

Question 27

The maintenance of a desired level of quality in a service or product, especially by means of attention to every stage of the process of delivery or production.

Answer 27

Quality Assurance Program

Question 28

Someone who creates and supplies goods or services.

Answer 28

Producer

Question 29

A merchant middleman who sells chiefly to retailers, other merchants, or industrial, institutional, and commercial users mainly for resale or business use.

Answer 29

Wholesaler

Question 30

A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business.

Answer 30

Retailer

Question 31

An individual who buys products or services for personal use and not for manufacture or resale.

Answer 31

End Consumer

Question 32

When the economy is growing.

Answer 32

Expansion

Question 33

When the economy is transitioning into the contraction phase.

Answer 33

Peak

Question 34

When the economy is weakening.

Answer 34

Contraction

Question 35

When the business transitions into the expansion/recovery phase.

Answer 35

Trough