Chapter 1

Question 1

Artificial Intelligence

Answer 1

Relates to machine learning that is able to perform activities and tasks that usually require human intelligence such as decisions, visual perception, and speech recognition.

Question 2

Big data

Answer 2

Large volumes of structured and unstructured data that are transmitted at very fast speeds

Question 3

Blockchain

Answer 3

A decentralized record-keeping technology that stores linked blocks of ordered transactions over time

Question 4

Budget deficit

Answer 4

The condition in which a nation spends more than it takes in from taxes

Question 5

Business

Answer 5

Individuals or organizations who try to earn a profit by providing products that satisfy people’s needs

Question 6

Capitalism (free enterprise)

Answer 6

An economic system in which individuals own and operate their own businesses that provide goods and services

Question 7

Communism

Answer 7

First described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources

Question 8

Competition

Answer 8

The rivalry among businesses for consumer’s dollars

Question 9

Demand

Answer 9

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

Question 10

Depression

Answer 10

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

Question 11

Drones

Answer 11

Unmanned aerial devices

Question 12

Economic contraction

Answer 12

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

Question 13

Economic expansion

Answer 13

The situation that occurs when an economy is growing and people are spending more money

Question 14

Economics

Answer 14

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

Question 15

Economic system

Answer 15

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

Question 16

Entrepreneur

Answer 16

An individual who risks money, time, and effort to develop for profit an innovative product or way of doing something

Question 17

Equilibrium Price

Answer 17

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

Question 18

Financial resources (capital)

Answer 18

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

Question 19

Free-market system

Answer 19

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

Question 20

Gross Domestic product (GDP)

Answer 20

The sum of all goods and services produced by a country during a year

Question 21

Human Resources (Labor)

Answer 21

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

Question 22

Inflation

Answer 22

A condition characterized by a continuing rise in prices

Question 23

Mixed economies

Answer 23

Economies made up of elements from more than one economic system

Question 24

Monopolistic competition

Answer 24

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

Question 25

Monopoly

Answer 25

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

Question 26

Natural resources

Answer 26

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

Question 27

Nonprofit organizations

Answer 27

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

Question 28

Oligopoly

Answer 28

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

Question 29

Product

Answer 29

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

Question 30

Open economy

Answer 30

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

Question 31

Profit

Answer 31

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

Question 32

Pure competition

Answer 32

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

Question 33

Recession

Answer 33

A decline in production, employment, and income

Question 34

Socialism

Answer 34

An economic system in which the government owns and operates basic industries, but individuals own and operate most businesses

Question 35

Stakeholders

Answer 35

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

Question 36

Standard of living

Answer 36

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

Question 37

Supply

Answer 37

The number of products (goods and services) that businesses are willing to sell and different prices at a specific time

Question 38

Technology

Answer 38

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

Question 39

Unemployment

Answer 39

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