Chapter 1

Question 1

Business

Answer 1

individuals or organization who try to earn a profit by providing products that satisfy peoples needs

Question 2

Products

Answer 2

a good or service with tangible and intangible characteristics that provide satisfaction and benefits

Question 3

Profit

Answer 3

the difference between what it costs to make and sell a product and what a customer pays for it

Question 4

Nonprofit Organizations

Answer 4

Organizations that may provide goods and services but do not have the fundamental purpose of earning profits

Question 5

Stakeholders

Answer 5

groups that have a stake in the success and outcomes of a business

Question 6

Economics

Answer 6

the study of how resources are distributed for the production of goods and services within a social system

Question 7

Natural Resources

Answer 7

land, forests, minerals, water, and other things that are not made by people

Question 8

Human Resources (Labor)

Answer 8

the physical and mental abilities that people use to produce goods and services

Question 9

Financial Resources (Capital)

Answer 9

the funds used to acquire the natural and human resources needed to provide products

Question 10

Economic System

Answer 10

a description of how a particular society distributes its resources to produce goods and services

Question 11

Communism

Answer 11

first described by Karl Marx as a society in which the people, without regard to class, own all the nations resources

Question 12

Socialism

Answer 12

an economic system in which government owns and operates basic industries but individuals own most businesses

Question 13

Capitalism (Free Enterprise)

Answer 13

an economic system in which individuals own and operate the majority of the businesses that provide goods and services

Question 14

Free-Market System

Answer 14

pure capitalism, in which all economic decisions are made without government intervention

Question 15

Mixed Economies

Answer 15

economies made up of elements from more than one economic system

Question 16

Demand

Answer 16

the number of goods and services that consumers are willing to buy at different prices at a specific time

Question 17

Supply

Answer 17

the number of products - goods and services - that businesses are willing to sell at different prices at a specific time

Question 18

Equilibrium Price

Answer 18

the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to buy at a specific point in time

Question 19

Competition

Answer 19

the rivalry among businesses for the consumers dollar

Question 20

Pure Competition

Answer 20

the market structure that exists when there are many small businesses selling one standardized product

Question 21

Monopolistic Competition

Answer 21

the market structure that exists when there are fewer businesses than in a pure competition environment and the differences among the goods they sell are small

Question 22

Oligopoly

Answer 22

the market structure that exists when there are very few businesses selling a product

Question 23

Monopoly

Answer 23

the market structure that exists when there is only one business providing a product in a given market

Question 24

Economic Expansion

Answer 24

the situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment

Question 25

Inflation

Answer 25

a condition characterized by a continuing raise in prices

Question 26

Economic Contraction

Answer 26

a slowdown of the economy characterized by the decline in spending and during which businesses cut back on production and lay off workers

Question 27

Recession

Answer 27

a decline in production, employment, and income

Question 28

Unemployment

Answer 28

the condition in which a percentage if the population wants to work but is unable to find jobs

Question 29

Depression

Answer 29

a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced

Question 30

Gross Domestic Product (GDP)

Answer 30

the sum of all goods and services produced in a country during a year

Question 31

Budget Deficit

Answer 31

the condition in which the nation spends more than it takes from taxes

Question 32

Standard of Living

Answer 32

refers to the level of wealth and material comfort that people have available to them

Question 33

Open Economy

Answer 33

an economy in which economic activities occur between the country and the international community

Question 34

Technology

Answer 34

includes the methods and processes creating applications to solve problems, perform tasks, and make decisions

Question 35

Artificial Intelligence (AI)

Answer 35

relates to machine (computer) learning that is able to perform activities and tasks that usually require human intelligence

Question 36

Big Data

Answer 36

refers to large volumes of structures and unstructured data this is transmitted at very fast speeds

Question 37

Blockchain

Answer 37

a decentralized record-keeping technology that stores linked block of ordered transactions over time

Question 38

Drones

Answer 38

unmanned ariel devices

Question 39

Entrepreneur

Answer 39

an individual who risks his/her wealth, time, and effort to develop for profit an innovative product or way of doing something