Examination 1 Flashcards
Efficiency canbestbe defined as?
producing items using the least amount of resources.
In a _______, consumers ultimately decide what should be produced.
free market system
________ is the study of how to increase resources and create conditions that will make better use of resources.
Resource development
To help employees become moreeffectively productive, companies may form cross_______ teams that draw on people from different departments to work on a special project.
functional
The trend toward two-family income has led to?
flexible work schedules, pregnancy benefits, and elder-care programs.
The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce mosteffectively and efficiently, is known as?
comparative advantage theory
These days, the leading commercial firms are found in the _______ sector.
service
In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the?
balance of payments.
Which statement best characterizes Adam Smith’s concept of the “invisible hand”?
The quest for personal gain works for the common good
Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula’s home nation. In global trade, this is known as?
dumping
Often, the _______ the risk, the _______ the rewards.
higher; higher
When the government of Indonesia imposes a tax on imported electronics products to help its young electronics industry compete in the global marketplace, it’s imposing a/an _______ on foreign electronics products.
protective tariff
Typically, the quantity of products people are willing to buy will _______ when prices__________?
decrease; increase
The _______, created in 1995, is assigned the task of mediating international trade disputes.
WTO
In general, a person who owns and operates his or her own business can be thought of as a/an?
entrepreneur
Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?
Monopolistic competition
Americans are often accused of being ethnocentric. This means that?
Americans feel their culture is superior to other cultures
Uniform product codes are also known as?
bar codes
Which of the following about a capitalist system is correct?
It relies on honesty, integrity, and high ethical standards.
Among developed nations, the United States is typical in that it has a _______ economy.
mixed
The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.
common market
The five factors of production include land, _______, capital, entrepreneurship, and _________.
labor; knowledge
When the value of exports from a country exceeds the value of imports into that country, there’s?
a trade surplus
The number of businesses owned by immigrants, minority groups, and women has _______ in recent years.
increased
The _______ denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulate each other, alternating with a period of decline accompanied by diminishing demand and supply.
business cycle
