Ch 1-4 Flashcards
An organizations external environment consists of everything that might affect it (True/False).
True
What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?
Human Resources
Who is the person who accepts the risks and opportunities inherent in a new business opportunity?
Entrepreneurs
What factor of production is used to generate forecasts based on specialized knowledge and economic data?
Information resources
Which economic system emphasizes the private ownership of most factors of production?
Capitalism
The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment (True/False).
False
Physical resources include the data and other information used by businesses (True/False).
False
In a market system, individuals are limited as to what they can buy and in how they can spend their money (True/False).
False
China functions as a communistic economy and political system (True/False).
False
What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?
The market price
What is the primary force that determines what a firm buys and sells?
Laws of supply and demand
Graphically, what has been achieved when price of goods demanded is equal to the quantity of goods supplied?
Equilibrium price
What is the term used to describe a market condition where buyers are able to satisfy the demand of the consumer, yet have some product remain unsold?
Surplus
Economic systems differ in how factors of production are used (True/False).
True
When a new product has high demand in the market, how should a company react?
Increase the supply of the product.
