Chapter 1-4

Question 1

What is “Standard of Living”

Answer 1

Amount of goods and services people can buy with the money they have.

Question 2

What is “Quality of life”?

Answer 2

Refers to the general well-being of a society in terms of its political freedom natural environment, education, healthcare, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide

Question 3

What is the difference between a nonprofit and a for-profit?

Answer 3

A nonprofit organization has goals that do not include making a personal profit for its owners or organizers

Question 4

What are the factors of production?

Answer 4

Land labor capital entrepreneurship and knowledge

Question 5

What are the benefits of owning your own business?

Answer 5

Freedom to make your own decisions opportunity and possible wealth

Question 6

What are the differences between communism capitalism and socialism?

Answer 6

Long drawn out answer I’m sure I know

Question 7

Define economics.

Answer 7

Economics is the study of how society chooses to employee resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

Question 8

Describe the steps of the business cycle.

Answer 8

And economic boom, a recession, depression and recovery.

Question 9

What are the basic Rights under capitalism?

Answer 9

The right to own private property, the right to own a business and keep all of that business is profits, the right to freedom of competition, the right to freedom of choice.

Question 10

What is perfect competition?

Answer 10

Perfect competition exists when there are many sellers in the market and none is large enough to dictate the price of the product.

Question 11

What is a monopolistic competition.?

Answer 11

Monopolistic competition a large number of sellers produce very similar products that buyers nevertheless perceived as different such as hotdog sodas personal computers and T-shirts

Question 12

What is an oligopoly?

Answer 12

It is a degree of competition in which just a few sellers dominate a market such as tobacco gasoline and automobiles.

Question 13

What is an ethical dilemma?

Answer 13

To choose between equally unsatisfactory alternatives.

Question 14

What is exporting?

Answer 14

Exporting is the selling a product to another country.

Question 15

What is a depression?

Answer 15

Recession is two or more consecutive quarters of decline in the GDP.

Question 16

What is a depression?

Answer 16

A depression is a severe recession usually accompanied by deflation. it is rare.

Question 17

What is the difference between comparative and absolute advantage?

Answer 17

Comparative advantage theory states that a country should sell to other countries those products it produces most affectively and efficiently and buy from other countries those products it cannot produce as effectively or is efficiently. An absolute advantage is when it can produce a specific product more efficiently than and all other countries.

Question 18

What is the difference between franchising and licensing?

Answer 18

D

Question 19

What is the difference between licensing and franchising?

Answer 19

A firm may decide to compete in the global market by licensing the right to manufacture its product or use it’s trademark in a foreign company for a license fee or royalty. Franchising is a contractual agreement whereby someone with a good idea for a business sells others the right to use the businesses name and sell a product or service in a given territory in a specified manner. Coca-Cola is an example of a license. McDonald’s is an example of a franchise.

Question 20

What is the difference between compliance-based and integrity-based Ethics?

Answer 20

Compliance-based has to do with government regulations. Integrity base to find the organizations guiding value comes from within.

Question 21

What are the three ethics questions,?

Answer 21

One is my proposed action legal, to follow the Golden rule three will I be OK with myself after I make this decision.

Question 22

What are JFK’s responsibility to customers?

Answer 22

responsibility to customers one right to safety to right to be informed three right to choose for right to be heard

Question 23

What is the difference between loss, revenue and profit?

Answer 23

Loss-business expenses are more than revenues.
Revenue-total amount taken in
Profit-amt. left over after expenses