Economics

Question 1

economic resources

Answer 1

-inputs used to produce goods and services
-land, labor, capital, and entrepreneurship

Question 2

economics

Answer 2

study of how people, businesses, and governments make decisions about the allocation of resources

Question 3

economic activities

Answer 3

-activities that people, businesses, and governments engage in to produce and distribute goods and services
-production, consumption, exchange, distribution, and investment
-driven by desire to make profit or satisfy a need

Question 4

role of business in society

Answer 4

-providing goods and services that people need and want
-create jobs
-tax revenue for gov
-create sense of community
-promote social responsibility and sustainability

Question 5

types of business models

Answer 5

-structure used to generate money
-subscription based
-advertising based: providing free services or products in exchange for displaying ads
-marketplace: connecting buyers and sellers for commission
-product based: selling directly to consumers

Question 6

types of business activities

Answer 6

-activities that a business engages in to generate revenue and profits
-producing goods or services, marketing, sales, customer service, accounting, and other administrative tasks
-2 categories: operational and strategic activities

Question 7

organizational design of businesses

Answer 7

-creating a structure and culture within a business that will enable it to achieve its goals and objectives
-creation of roles, responsibilities, and processes

Question 8

global environment in which businesses operate

Answer 8

-complex and ever-changing landscape
-economic, political, social, technological, and environmental elements

Question 9

factors that affect the business environment

Answer 9

economic, political, social, technological, legal, and environmental factors

Question 10

business ethics

Answer 10

-businesses should act in a way that is fair, honest, and responsible
-corporate social responsibility, workplace safety, environmental protection, and customer privacy
-integrity, respect, and trustworthiness

Question 11

organizations adapt to today’s markets

Answer 11

-clear understanding of their target market, customer needs, and the competitive landscape
-implement strategies to capitalize on opportunities and mitigate risks
-resources and infrastructure to support their strategies
-must analyze to improve

Question 12

impact of small business/entrepreneurship on market economies

Answer 12

-create jobs, stimulate economic growth, and provide goods and services that are not available from larger businesses
-gives competition, results in lower prices, better quality
-

Question 13

private enterprise

Answer 13

type of business organization that is owned and operated by private individuals or groups, rather than by the government

Question 14

factors affecting business risk

Answer 14

-external factors such as economic conditions, competition, and changes in the market
-internal factors such as the company’s financial position, management capabilities, and operational processes

Question 15

relationship between government and business

Answer 15

-gov creates laws that businesses follow
-businesses provides goods, services, jobs
-gov gives incentives to businesses, in return get taxes

Question 16

taxes

Answer 16

-required payment to gov
-based on income, sales, and property
-give the gov with the funds to provide essential services to its citizens

Question 17

productivity

Answer 17

how efficiently resources are used to produce goods and services

Question 18

organized labor and business

Answer 18

-relationship between labor unions and employers
-labor unions: organizations of workers that negotiate with employers to ensure fair wages, working conditions, and other benefits
-businesses: organizations that provide goods and services to consumers

Question 19

impact of the law of diminishing returns

Answer 19

-states as more of a resource is used to produce a product, the marginal output of that product will eventually decrease
-benefit of adding more of a resource will eventually decrease, and the cost of adding more of the resource will eventually outweigh the benefit

Question 20

economic impact of inflation on business

Answer 20

-when cost of goods and services rises, businesses must increase their prices to keep up
-lead to decreased demand
-reduce their profits and make it difficult for them to remain competitive
-can also lead to higher interest rates, which can make it more expensive to borrow money

Question 21

Gross Domestic Product (GDP)

Answer 21

-measure of the total economic output of a country
-add the value of all goods and services produced within a country in a given period of time
-measure economic health, size, performance compared to other countries

Question 22

economic impact of interest-rate fluctuations

Answer 22

-when interest rates rise, leads to increase in borrowing costs, making it more expensive to finance things
-leads to decreased economic activity
-vice versa

Question 23

global trade

Answer 23

buying and selling of goods and services across international borders
-lets countries specialize
-increases competition, lowers price, better quality

Question 24

impact of globalization on business

Answer 24

-opened up new markets, increased competition, and allowed businesses to access resources from around the world
-lower production costs and access to cheaper labor
-diversify their products and services

Question 25

determinants of exchange rates and their effects on the domestic economy

Answer 25

exchange rates: rate at which one currency can be exchanged for another
-economic factors such as inflation, interest rates, government policies, and trade balances
-political factors such as geopolitical tensions and international relations
-strong exchange rate can lead to increased exports, cuz foreign buyers are able to purchase more
-vice versa
-also affects cost of imports as a strong rate makes more expensive and weak rate makes cheaper

Question 26

impact of major trade alliances on business activities

Answer 26

-agreements between two or more countries to reduce or eliminate trade barriers
-make it easier for businesses to access new markets and increase their sales
-help reduce costs and increase efficiency

Question 27

impact of the political environment on world trade

Answer 27

-govs can create policies that either encourage or discourage international trade
-can also create trade agreements that reduce or eliminate tariffs and other trade barriers
-can create regulations that affect the flow of goods and services across borders

Question 28

impact of geography on world trade

Answer 28

-affects the cost of transportation
-availability of resources
-ability of countries to access markets
-ability of countries to form trade agreements

Question 29

impact of a country’s history on world trade

Answer 29

-conflicts can disrupt trade routes
-political and economic policies
-cultural values and beliefs
-relationships with other countries

Question 30

impact of a country’s economic development on world trade

Answer 30

-more developed, can produce more goods and services
-increases demand, leads to more trade
-attracts foreign investment
-creates competition

Question 31

impact of bribery and foreign monetary payments on business

Answer 31

-gives unfair advantage over competition
-lack of transparency and accountability
-decrease in competition
-decrease in public trust

Question 32

requirements for international business travel

Answer 32

-valid passport is required for all international travel, -visa depending on country
proof of citizenship like birth certificate or naturalization certificate
-immunizations may be required
-sponsorship letters may be required from the company or organization sponsoring the business travel