Open-ended questions

Question 0

Six step decision making process?

Answer 0

1) define the problem 2) identify the choices 3) evaluate advantages and disadv 4) make a choice 5) act on the choice 6) review your decision (reflect)

Question 1

What are the three economic questions that need to be answered?

Answer 1

1) What goods/services will be produced? 2) What wants and needs will be satisfied with the goods/services produced? 3) How will they be produced?

Question 2

List the four major categories of economic activity involved with GDP

Answer 2

1) consumer spending
2) business spending (buildings, equipment)
3) government spending to pay employees
4) exports of a country less the imports into it

Question 3

List and explain four phases of the business cycle

Answer 3

prosperity: good wages, people who want a job have on – recession: economy slows, demand decreades, unemployment rises – depression: prolonged period of high unemployment – recovery: unemployment decreases, gdp rises

Question 4

Three factors that affect currency values

Answer 4

1) balance of payments 2) economic conditions 3) political stability

Question 5

List and describe the formal trade barriers used by the government

Answer 5

quotas: limit on the quantity– tariffs: tax on the product – embargo: stopping the import and export of a product completely

Question 6

Two strategies used by multinational companies

Answer 6

global strategy: uses same product and marketing strategy worldwide –multinational strategy: treats each country differently

Question 7

different levels of the government

Answer 7

federal gov; regulates things such as a traveling trucking company – state gov: regulates business actions within its borders – local gov; city/town council, police/fire

Question 8

Difference between tax revenue and borrowing by the gov

Answer 8

tax revenue: gov creates policies to pay for the service it provides - borrowing: through selling bonds

Question 9

Pick one form of business ownership and definite it and explain adv and disadv

Answer 9

Proprietorship: business owned by one person and its advantages are its easiest to start and end and has very fee legal requirements its disadvantages are no shelter from creditors and youre 100% liable if the business fails

Question 10

List and explain the three types of businesses

Answer 10

producer: creates the products and services – intermediaries: sells the goods and services of producers – service businesses: carries out activities that are consumed by its customers