Quiz 1

Question 1

Business

Answer 1

organizations that provide goods and/or services for a profit.

Question 2

Nonprofit Organizations

Answer 2

organizations whose primary purpose is not to distribute profit, but to serve the interest of the general public.

Question 3

Revenues

Answer 3

the total amount of money a business takes in during a given period by selling goods and services.

Question 4

Profit

Answer 4

revenue greater than expenses.

Question 5

Loss

Answer 5

expenses greater than profit.

Question 6

Risk

Answer 6

chance

Question 7

Goods

Answer 7

tangible products. e.g. computers, food, clothing, cars, appliances. ( can be touched )

Question 8

Services

Answer 8

intangible products. e.g. education, health care, insurance, recreation, travel, tourist, etc. ( can’t be touched )

Question 9

Stakeholders

Answer 9

people and organizations that are affected by business decisions. e.g. customers, investors, employees, government, communities.

Question 10

Stockholders

Answer 10

a shareholder.

Question 11

Standard of Living

Answer 11

amount of goods and services people can buy with the money they have.

Question 12

Quality of Life

Answer 12

the level of satisfaction or dissatisfaction one derives from living in a particular place/region. e.g. level of education, housing, roads, health care, communication, transportation, political freedom, safety, etc.

Question 13

5 Factors of Production

Answer 13

1) Land/Natural Resources- forest, minerals.
2) Labor- human production
3) Capitol- machinery and equipment
4) Entrepreneurship- starting a business
5) Knowledge

Question 14

Forces in the Business Environment (7)

Answer 14

Economic Environment- types of economic system: the private enterprise system.

Technological Environment- Informational technology.

Legal and Political Environment- Contract laws (enables businesses to write enforceable contracts)

Competitive Environment-Competition refers to battle among businesses for consumer acceptance.

Social and Cultural Environment- Demography (e.g. diversity, aging, language, goals, values, etc)

Global Environment- The growth of international competition.

Ecological Environment- Climate change.

Question 15

Economics

Answer 15

How society chooses to employ resources to produce goods and services

Question 16

Microeconomics

Answer 16

small economic units, such as individual consumers, families and business.

Question 17

Macroeconomics

Answer 17

study of the country’s overall economic issues.

e.g. competition, government policies, etc..

Question 18

Supply

Answer 18

the amount of product you have to offer.

Question 19

Demand

Answer 19

the amount of the product that people are willing to buy at different prices at a specific time

Question 20

Supply Curve

Answer 20

how many products will be offered for sale at different times.

Question 21

Demand Curve

Answer 21

how many products will be demanded at different prices.

Question 22

Law of Supply

Answer 22

producers will supply more of a product for sale as its price rises and less as it drops.

Question 23

Law of Demand

Answer 23

buyers will purchase more of a product as its price drops and less as its price increases.

Question 24

Equilibrium Price

Answer 24

market price. The price that the business and customers agree on to be a good amount for each.

Question 25

Surplus

Answer 25

exceeds the quantity demanded

Question 26

Shortage

Answer 26

less then demanded

Question 27

Factors that influence supply

Answer 27

Costs of input. e.g. if the cost of fuel rises airlines may respond by cutting back the number of economy seats assigned to its routes, thus, shifting the supply curve to the left

Question 28

Factors that influence demand

Answer 28

consumer Income, customer taste

Question 29

Types of competition in private enterprise systems

Answer 29

Perfect competition, monopolistic (multiple) competition, product differentiation, oligopoly, monopoly(one)

Question 30

Capitalism

Answer 30

the private enterprise system- economic system in which all or most of the factor are privately owned and are operated for profit

Question 31

Communism

Answer 31

(command economy) economic and political system in which the state makes almost all economic decisions and owns almost all economies decisions and owns almost all of the factors of production.

Question 32

Socialism

Answer 32

Economic system based on the premise that some, if not most, basic businesses should be owned by the government so profit can be evenly distributed among the people. -steel mills, coal mines, utilities.

Question 33

Mixed Ecomonies

Answer 33

exist where some allocation of resources is made by the market and some by the government

Question 34

What is productivity? What is its effectiveness for efficiency?

Answer 34

goods and services produces in a nation each year and the inputs needed to produce them.

Question 35

GDP

Answer 35

Gross Domestic Product - Total value of final goods and services produces in a country in a given year.

Question 36

GNP

Answer 36

Gross National Product- Total value of all goods and services produced by a national economy within given period regardless of where the factors of production are located.

Question 37

GDP per Capita

Answer 37

equals the sum total of output of all goods and services and then dividing that output by the population

Question 38

CPI

Answer 38

Consumer Price Index- consists of monthly stats that measure the pace of inflation or deflation

Question 39

PPI

Answer 39

Producer Price Index- measures prices at the producer or wholesale level.

Question 40

Types of inflation

Answer 40

Inflation, Disinflation, deflation, stagflation.

Question 41

Types of unemployment

Answer 41

Frictional, Seasonal, Cyclical, and Structural.

Question 42

Fiscal Policy

Answer 42

refers to government economic policy that determines how the government collects and spends its revenue.

Question 43

Monetary Policy

Answer 43

government policy that determines the size of a nations monetary supply.

Question 44

4 Phases of the Business Cycle

Answer 44

prosperity/boom, recession, depression, recovery, prosperity/boom

Question 45

chairman

Answer 45

girl ?

Question 46

treasurer

Answer 46

something lou ?