Chapter 15

Question 1

Profit

Answer 1

Equals total revenues minus total costs

Question 2

Microeconomics

Answer 2

The study of the behaviour of individual businesses and households

Question 3

The law of demand

Answer 3

When consumers will demand less of a product as its price increases and more as its price falls

Question 4

Market equilibrium

Answer 4

Supply = Demand

Question 5

Market surplus

Answer 5

Supply > Demand

Question 6

Market Shortage

Answer 6

Supply < Demand

Question 7

The Bottom Line

Answer 7

Net Profit or Loss

Question 8

Law of supply

Answer 8

increase of production, increase in price, decrease in production, decrease in price

Question 9

assets

Answer 9

Financial Resources

Question 10

Liabilities

Answer 10

Obligations to pay others

Question 11

Service

Answer 11

An intangible product such as fitness assessments advice or yoga class

Question 12

Goods

Answer 12

A tangible product such as a soccer ball, football helmet, or pair of basketball shoes

Question 13

Private programs

Answer 13

Paid for entirely by the participants, due to the fact the benefits are felt by participants only, not by the general public

Question 14

Merit Programs

Answer 14

Partially subsidized by tax dollars, but also has users fees attached to help recover the production costs

Question 15

Statement of cash flow

Answer 15

Use to show the in and out of cash during a given period of time

Question 16

Balance sheet

Answer 16

Refers to the financial condition of the organization on a particular date, showing assets, liabilities and owners equity

Question 17

Public Programs

Answer 17

Provides the financial results of the organization over a period of time indicates the bottom line