Unit 1 Test

Question 1

An organization that uses productive resources to produce a good and/or service to satisfy consumer needs and wants in exchange for added value, usually in the form of monetary (money) profit

Answer 1

Business

Question 2

Something that is tangible (in physical nature) and of value

Answer 2

Good

Question 3

An action performed that is intangible and of value

Answer 3

Service

Question 4

A necessity

Answer 4

Need

Question 5

Something one would like to have

Answer 5

Want

Question 6

The net gain obtained by subtracting expenses

Answer 6

Profit

Question 7

Total income

Answer 7

Revenue

Question 8

Total cost a business incurs

Answer 8

Expenses

Question 9

A business with the purpose of making a profit for their owners

Answer 9

For-Profit

Question 10

Businesses formed for religious, charitable, educational, governmental, or other purposes

Answer 10

Non-Profit

Question 11

A basic foundation of the study of economics. Our wants are theoretically unlimited but our resources to meet those wants are limited or scarce

Answer 11

Scarcity

Question 12

Something that occurs anytime buyers and sellers willingly meet to negotiate and exchange things of value. A way of determining how we organize and distribute our scarce resources to meet our unlimited wants and needs

Answer 12

Market

Question 13

The wealth and resources of a country or region especially in terms of the production and consumption of goods and services. Generally it will have less or more markets in their composition

Answer 13

Economy

Question 14

The central authority (government) determines who owns the means to produce goods and services, what to produce, how to produce, and who to produce for.

Answer 14

Socialized Economy

Question 15

Determined through the interactions of free markets. What to produce is determined by what can make the most value n the economy. Production is done in the most effective way that can generate maximum profit. Sell to whoever will pay the most.

Answer 15

Market Economy

Question 16

The study of how we deal with scarcity in our world. That is, how we deal with having unlimited wants and limited resources

Answer 16

Economics

Question 17

The quantity of goods and/or services that consumers are willing and able to buy at various prices.

Answer 17

Demand

Question 18

The quantity of goods and/or services that producers are willing and able to sell at various prices.

Answer 18

Supply

Question 19

The point at which a supply curve and a demand curve meet is called the equilibrium

Answer 19

Equilibrium

Question 20

A business with one owner who gains all of the benefits of the business and assumes all of the risk

Answer 20

Sole Proprietorship

Question 21

A business owned by a legal entity that is separate from its owner

Answer 21

Partnership

Question 22

A legal entity that is separate and distinct from its owners. Under the law, they possess many of the same rights and responsibility as individuals. They can enter into contracts, loan, borrow money, sue and be sued, employees own assets, and pay taxes.

Answer 22

Corporation

Question 23

No separation between the owners personal assets. This means that if the business goes into debt by borrowing money or assets from someone else, and the business can’t get out of debt then the person owed money can take all of their assets.

Answer 23

Unlimited Liability

Question 24

Shareholders personal assets (house, cash, etc.) are separate from the assets of the corporations. So if the corporation owes money, the shareholders are not personally liable for these losses. This means that they cannot lose their house, car, etc.

Answer 24

Limited Liability

Question 25

A corporation whose shares are bought and sold on public stock exchange (stock market) corporations enter a stock market with an initial public offering (IPO) they tend to be very large in market size (market cap.)

Answer 25

Public Corporation

Question 26

A corporation which does not sell shares on a public stock exchange. These corporations often leverage private investors to purchase their shares. These corporations range in size to very small to multinational and massive.

Answer 26

Private Corporation

Question 27

Created/operated by our Federal Government. These corporations are often created to organize resources that will enhance the public good.

Answer 27

Crown Corporation

Question 28

An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities

Answer 28

Franchise

Question 29

The willing exchange of goods and/or services for perceived value

Answer 29

Trade

Question 30

The next most valuable option you have given up when you make an exchange

Answer 30

Opportunity Cost

Question 31

International trade left to it’s natural course without tariffs, quotas, or other restrictions

Answer 31

Free Trade

Question 32

A trading partnership based on dialogue, transparency, and respect that seeks greater equity in international trade.

Answer 32

Fair Trade

Question 33

refers to the process of interactions and integrations among people, companies, and governments worldwide. It encompasses economic, social, and cultural aspects resulting in increased international connectivity. One key to global corporations as it relates to this is the reduction/elimination of trade carriers.

Answer 33

Globalization

Question 34

Refers to the long-term viability of a community, social institution, or societal practices. It is the idea that humans need to find ways to support life today in ways that allow for future generations to live without harm

Answer 34

Sustainability

Question 35

This measures the average economic output per person, providing insight into the standard of living and economic health of a country.

Answer 35

GDP Per Capita