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DC Business > Ch. 1 > Flashcards

Ch. 1 Flashcards

1
Q

Business

A

an organization that strives for a profit by providing goods and services desired by its customers.

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2
Q

Goods

A

are tangible items manufactured by businesses, such as laptops.

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3
Q

services

A

are intangible offerings of businesses that can’t be held, touched, or stored. Physicians, lawyers, hairstylists are examples of those who provide services.

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4
Q

standard of living

A

of any country is measured by the output of goods and services people can buy with the money they have.

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5
Q

revenue

A

the amount of money a company brings in

Revenues - costs = profit

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6
Q

non-profit organization

A

is an organization that exists to achieve some goal other than the usual business goal of profit.

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7
Q

Factors of production

A

Natural resources
Labor (human resources)
Capital
Entrepreneurship
Knowledge

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8
Q

Business environmental influences (PESTLE)

A

Politcal & legal
demographic
social
technology
global
competitive

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9
Q

Political & legal influences

A

the amount of government activity, types of laws, & political stability.

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10
Q

demographic influences

A

vital statistics, such as their age, gender, race and ethnicity, and location.

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11
Q

social influences

A

attitudes, values, ethics, and lifestyles - influence

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12
Q

technology influences

A

application of science and engineering skills and knowledge to solve production and organizational problems.

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13
Q

global influences

A

social issues that affect those in other countries, their cultural norms, consumer trends and economic status.

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14
Q

competitve influences

A

What are competitors doing?

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15
Q

economic system

A

The combination of policies, laws, and choices, and by its government to establish the systems that determine what goods and services are produced and how they are allocated.

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16
Q

economics

A

the study of how a society uses scarce resources to produce and distribute goods and services.

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17
Q

Capitalism

A

Businesses are privately owned
freedom of trade

strong incentives to work hard to earn profit

companies are managed by private owners

ex: US

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18
Q

Communism

A

government owns all or most enterprises

complete government control of markets

no incentive to work hard or produce quality products

centralized management by the government bureaucracy. little or no flexibility in decision-making at the factory level.

no growth and perhaps disappearance

Ex: cuba, north korea

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19
Q

Socialism

A

basic industris such as railroads are owned by government

some markets are controlled and some are free.

private-sector incesntives are the same as capitalism

significanat government planning and regulation

stable with probable slight growth

Ex: Finland, India

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20
Q

Mixed Economy

A

private owenership of land and businesses, but government control some enterprises

some markets such as nuclear energy are regulated by the government

private sector incentives are the same as capitalism

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21
Q

Capitalism

A

the private enterprise system, is based on competition in the marketplace and private ownership of the factors of production (resources).

22
Q

4 capitalist rights

A

Right to own property
Right to make a profit
Right to make free choices
Right to compete

23
Q

Macroeconomics

A

the study of the economy as a whole. It looks at aggregate data for large groups of people, companies, or products considered as a whole.

24
Q

microeconomics

A

focuses on individual parts of the economy, such as households or firms.

25
Q

economic growth

A

an increase in a nation’s output of goods and services. The more the nation produces, the higher its standard of living.

26
Q

GDP

A

Gross domestic product. The total market value of all final goods and services produced within a nation’s borders each year. When GDP rises, the economy is growing.

27
Q

growth

A

an increase in a nation’s output of goods and services. The more the nation produces, the higher its standard of living.

28
Q

Macroeconomic goals

A

Economic growth
Full employment
Price stability

29
Q

Business cycles

A

the upward and downward changes of economic activity

30
Q

Recession

A

A decline in GDP that lasts for two consecutive quarters

31
Q

Economic unemployment rate

A

the rate indicates the percentage of the total labor force that is not working but is actively looking for work.

32
Q

5 types of unemployment

A

frictional
structural
cyclical
seasonal

33
Q

Frictional Unemployment

A

short-term unemployment that is not related to the business cycle
- People who are unemployed while waiting to start a better job
- Those who are reentering the job market
- Those entering for the first time, such as new college graduates

34
Q

Structural unemployment

A

caused by a mismatch between available jobs and the skills of available workers in an industry or a region
- Unrelated to business cycle but is not involuntary.

35
Q

Cyclical unemployment

A

occurs when a downturn in the business cycle reduces the demand for labor throughout the economy
- In large recession, cyclical unemployment is widespread, and even people with good job skills can’t find jobs

36
Q

Seasonal unemployment

A

occurs during specific times of the year in certain industries

37
Q

purchasing power

A

the value of what money can buy. It’s affected by:
Inflation
income

38
Q

Inflation types

A

Demand - pull
cost - push

39
Q

Demand inflation

A

occurs when the demand for goods and services is greater than the supply
- Buyers have more money available than the amount needed to buy
- Demand, which exceeds the supply, tends to pull prices up

40
Q

Cost inflation

A

Is triggered by increases in production costs, such as expenses for materials and wages
- Theses increases push up the prices of final goods and services
- Wage increases are a major cause

41
Q

monetary policy

A

refers to a government’s programs for controlling the amount of money circulation in the economy and interest rates
- Changes in the money supply affect both the level of economic activity and rate inflation

42
Q

federal reserve system

A

the banking system of the United States, prints money and controls how much of it will be in circulation
- The increase or decrease of money in circulation affects inflation
- The Fed can use monetary policy to contract or expand the economy.

43
Q

contractionary policy

A

increase interest rate, increase unemployment, increase inflation, decrease spending
- The result is slows economy

44
Q

expansionary policy

A

decrease interest rate, decrease unemployment, decrease inflation, increase spending
- The result is growing economy

45
Q

fiscal period

A

the government’s program of taxation and spending taxes are the major source of revenue for our government

46
Q

demand

A

the quantity of a good or service that people are willing to buy at various prices
- The higher the price the lower the quantity demanded
- On a graph the demand curve slopes a graph of this relationship is called a demand curve

47
Q

supply

A

the quantity of a good or service that businesses are willing to make available at various prices.
- The higher the price the higher the price, the greater the number a supplier will produce
- On a graph the supply curve slopes

48
Q

equilibrium point

A

where the supply and demand curves intersect

49
Q

relationship management

A

building, maintaining, and enhancing interactions with customers and other parties to develop long-term satisfaction through mutually beneficial partnerships

50
Q

strategic alliances

A

cooperative agreements between business firms

DC Business (1 decks)

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