Chapter 1

Question 1

Number of products-goods or services- that businesses are willing to sell at diff prices at a specific time.

Answer 1

Supply

Question 2

Groups that have a stake in the success and outcome of a business.

Answer 2

Stakeholders

Question 3

When the govt owns and operates basic industries but individuals own most businesses.

Answer 3

Socialism

Question 4

A decline in production, employment, and income.

Answer 4

Recession

Question 5

When there are many small businesses selling one standardized product.

Answer 5

Pure competition

Question 6

Difference between what it costs to make and sell a product and what a customer pays for it.

Answer 6

Profit

Question 7

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

Answer 7

Product

Question 8

When there are very few businesses selling a product.

Answer 8

Oligopoly

Question 9

Organizations that may provide goods and services but don’t have the fundamental purpose of earning profits.

Answer 9

Non profit organization

Question 10

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

Answer 10

Natural resources

Question 11

When there is only one business providing a product in a given market.

Answer 11

Monopoly

Question 12

When there are fewer businesses than in a pure competition environment and the differences among the goods they sell are small.

Answer 12

Monopolistic competition

Question 13

Economies made up of elements from more than one economic system.

Answer 13

Mixed economies

Question 14

A condition characterized by a continuing rise in prices.

Answer 14

Inflation

Question 15

The physical and mental abilities that people use to produce goods and services also called labor.

Answer 15

Human resources

Question 16

Sum of all goods and services produced in a country during a year.

Answer 16

Gross domestic product

Question 17

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

Answer 17

Free market system

Question 18

The funds used to aquire the natural and human resources needed to provide products also called capital.

Answer 18

Financial resources

Question 19

Amount of products businesses are willing to provide equals amount of products consumers are willing to buy at a specific point in time.

Answer 19

Equilibrium price

Question 20

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

Answer 20

Entrepreneur

Question 21

When a nation spends more than it takes in from taxes.

Answer 21

Budget deficit

Question 22

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

Answer 22

Businesses

Question 23

Individuals own and operate the majority of businesses that provide goods and services.

Answer 23

Capitalism or free enterprise

Question 24

A society where the people without regard to class own all nations resources. Karl Marx.

Answer 24

Communism

Question 25

Rivalry among businesses for consumer dollars.

Answer 25

Competition

Question 26

Number of goods and services that consumers are willing to buy at diff prices at a specific time.

Answer 26

Demand

Question 27

Condition of the economy in which unemployment is high, consumer spending is low and business output is sharply reduced.

Answer 27

Depression

Question 28

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

Answer 28

Economic contraction

Question 29

When an economy is growing and people are spending more money and their purchases stimulate the production of goods and services which stimulates employment.

Answer 29

Economic expansion

Question 30

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

Answer 30

Economic system

Question 31

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

Answer 31

Economics

Question 32

When a percentage of the population wants to work but can’t find a job.

Answer 32

Unemployment