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Business 101 > Chapter 1 > Flashcards

Chapter 1 Flashcards

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1
Q

brain drain

A

loss of the best and brightest people

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2
Q

Communism

A

economic and political system in which government makes almost all economic decisions and owns almost all the major factors of production

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3
Q

capitalism

A

all or most factors of production and distribution are owned by individuals

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4
Q

invisible hand

A

the process that turns self-directed gain into social and economic benefits for all when a person prospers

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5
Q

Under free market capitalism, people have four basic rights:

A
  1. The right to own property 2. The right to own a business and keep all that business’s profits 3. The right to freedom of competition 4. The right to freedom of choice
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6
Q

Socialism

A

economic system based on the premise that some, if not most, basic business should be owned by the government so that profits can be more evenly distributed among the people.

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7
Q

Business

A

any activity that seeks to provide goods and services to others while operating at a profit

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8
Q

Goods

A

tangible products such as computers, food, clothing, cars and appliances

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9
Q

Services

A

intangible products such as education, healthcare, insurance, recreation, and travel and tourism.

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10
Q

Revenue

A

total amount of money a business take in during a given period by selling goods and services

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11
Q

Profit

A

The amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation

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12
Q

Loss

A

A loss occurs when a business’s expenses are more than its revenues

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13
Q

Entreprenuer

A

A person who risks time and money to start and manage a business

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14
Q

Risk

A

the chance an entrepreneur takes of losing time and money on a business that may not prove to be profitable.

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15
Q

Standard of living

A

refers to the amount of goods and services people can buy with the money they have

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16
Q

Stakeholders

A

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

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17
Q

Nonprofit organization

A

an organization whose goals do not include making a personal profit for its owners or organizers

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18
Q

Business environment

A

consists of surrounding factors that either help or hinder the development of business

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19
Q

What are the five elements of the business environment?

A
  1. economic and legal 2. technological 3. competitive 4. social 5. global
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20
Q

Effectiveness

A

producing the desired result

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21
Q

efficiency

A

producing goods and services using the least amount of resources

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22
Q

Productivity

A

the amount of output you generate given the amount of input

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23
Q

Demography

A

the statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.

24
Q

Economics

A

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

25
Q

macroeconomics

A

looks at the operation of a nation’s economy as a whole

26
Q

microeconomics

A

looks at the behavior of people and organizations in markets for particular products or services.

27
Q

Resource development

A

the study of how to increase resources

28
Q

factors of production

A

are the resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge

29
Q

command economies

A

the government largely decides what goods and services will be produced, who gets them, and how the economy will grow

30
Q

Free-market economies

A

the market largely determines what goods and services get produced, who gets them, and how the economy grows

31
Q

Supply

A

refers to the quantities of products manufacturers or owners are willing to sell at different prices at a specific time.

32
Q

Demand

A

refers to the quantity of products that people are willing to buy at different prices at a specific time

33
Q

Market price

A

determined by supply and demand. It is the price toward which the market will trend

34
Q

Perfect competition

A

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

35
Q

Monopolistic competition

A

large number of sellers produce very similar products that buyers nevertheless perceive as different

36
Q

Oligopoly

A

a degree of competition in which just a few sellers dominate the market

37
Q

Monopoly

A

one seller controls the total supply of a product or service, and sets the price

38
Q

Gross domestic product

A

total value of goods and services produced in a country in a given year

39
Q

unemployment rate

A

percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks

40
Q

Inflation

A

general rise in the prices of goods and services over time

41
Q

Disinflation

A

occurs when price increases start slowing

42
Q

Deflation

A

prices are declining

43
Q

Stagflation

A

economy is slowing but prices are going up somehow

44
Q

consumer price index (CPI)

A

monthly statistics that measure the pace of inflation and deflation

45
Q

core inflation

A

CPI minus food and energy costs

46
Q

producer price index

A

measures the change in prices at the wholesale level

47
Q

recession

A

two or more consecutive quarters of decline in GDP

48
Q

depression

A

a severe recession, usually accompanied by deflation

49
Q

Fiscal policy

A

refers to federal governments efforts to keep the economy stable by increasing or decreasing taxes or government spending

50
Q

Keynesians economic theory

A

theory that a government policy of increasing spending and cutting taxes could stimulate the economy in recession

51
Q

National debt

A

the sum of government deficits over time

52
Q

monetary policy

A

management of the money supply and interest rates by the Federal Reserve Bank

53
Q

What are the two branches of economics?

A

Macroeconomics and microeconomics

54
Q

What are the the most important factors of production?

A

Entrepreneurship and knowledge

55
Q

What are the key economic indicators in the US?

A

Gross domestic product (GDP) and consumer price index (CPI)

56
Q

What are the four phases of business cycles?

A

Economic boom, recession, depression, recovery

57
Q

What is the history of economic development in the US?

A

Agricultural workers displaced by improve tech. Then, manufacturing productivity improved which also displaced workers. This led to the development of the service industry. The service industry is now giving way to an information-based global revolution.

Business 101 (3 decks)

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