exam 1

Question 1

Free enterprise

Answer 1

system which individuals have the right the to chose what to produce, how to produce it and what price to sell it.

Question 2

Conseptual Skills

Answer 2

ability to see the bigger picture

Question 3

Buisness

Answer 3

the organized effort of individuals to produce and sell for a profit the goods and services that satisfies a society’s needs

Question 4

Social Responsibility

Answer 4

the recognition that business activities have an impact on society and the consideration of that impact in business decision making

Question 5

Profit

Answer 5

what remains after all business expenses have been deducted from sales revenue

Question 6

Stakeholder

Answer 6

all the different groups of people who are affected by the policies and decisions made by an organization

Question 7

Economics

Answer 7

study of how wealth is created and distributed

Question 8

Micro economics

Answer 8

decisions made by businesses and individuals

Question 9

Macro economics

Answer 9

study of the national and global economy

Question 10

Entrepreneur

Answer 10

a person who risks time, effort and money to start and operate a business.

Question 11

Market Economy

Answer 11

an economic system in which businesses and the individual decide what to produce and buy, and the market determines quantities sold and prices.

Question 12

Command Economy

Answer 12

The govt decides what goods and services will be produced, how they will be produced and for whom available goods and services will be produced and who owns and controls the major factors of production.

Question 13

Productivity

Answer 13

the average level of output per worker per hour

Question 14

Gross Domestic Product

Answer 14

the total dollar values of all goods and services produced by all people within the boundaries of a country during a one-year period.

Question 15

Inflation

Answer 15

a general rise in the level of prices

Question 16

Consumer Price Index

Answer 16

monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area

Question 17

Producer Price Index

Answer 17

an index that measures prices that producers receive for their finished goods

Question 18

Business Cycle

Answer 18

the recurrence of periods of growth and recession in a nations economic activity

Question 19

Recession

Answer 19

two or more consecutive 3-month periods of decline in a countries GDP

Question 20

Monetary Policy

Answer 20

policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

Question 21

Federal Defecits

Answer 21

a shortfall created when the federal government spends more in a fiscal year than it recieves

Question 22

National Debt

Answer 22

the total of federal defecits

Question 23

Competition

Answer 23

rivalry amongst businesses for sales to potential customers

Question 24

Market Price

Answer 24

the price at which the quantity demanded is exactly equal to the quantity supplied

Question 25

Product Differentiation

Answer 25

the process of developing and promoting differences between ones product and all other products

Question 26

Oligopoly

Answer 26

a state of limited competition, in which a market is shared by a small number of producers or sellers

Question 27

Monopoly

Answer 27

a market or industry with only one seller with barriers to keep other firms from entering the industry.

Question 28

Standard of Living

Answer 28

a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services

Question 29

Specialization

Answer 29

the separation of a manufacturing process into distinct tasks and the assignments of different tasks to different individuals

Question 30

E-Business

Answer 30

the organized efforts of individuals to produce and sell through the internet

Question 31

Business Ethics

Answer 31

the application of moral standards to business situations

Question 32

Whistle-blowing

Answer 32

informing the press or government officials about unethical practices within one’s organizations

Question 33

Consumerism

Answer 33

all activities undertaken to protect the rights of consumers

Question 34

President who was author of Consumerism

Answer 34

Kennedy

Question 35

Affirmative Action Program

Answer 35

a plan deigned to increase the number of minority employees at all levels within an organization

Question 36

EEOC is what?

Answer 36

Equal Employment

Question 37

Pollution

Answer 37

the contamination of water, air or land through the actions of people in an industrialized society

Question 38

EPA is?

Answer 38

Environmental Protection Agency

Question 39

Social Audit

Answer 39

a comprehensive report of what an organization has done and is doing with regard to social issues that affect it