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Intro To Business Chapter 1-3
Study Guide Review Question; 1-30 True & False, 31-90 Multiple Choise
Terms in this set (90)
Things that are required in order to live are know as wants
Goods and services are purchased by business as well as by individuals
Buildings, equipment, and supplies are examples of natural resources
All economic resources have a limited supply
The basic economic problem result for not having enough resources to satisfy every need
The final stop of the decision making process is to select the best choice from among the alternatives
Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs
Communism refers to the private ownership of resources individuals, rather than by the government
A person who buys and uses goods and services is called a consumer
Generally, a lack of competition will result in lower prices for goods and services
Economic growth refers to a steady increase in the production of goods and services in an economic system
One components of gross domestic product is the value of a country's exports plus the value of imports into the country
The more goods and services produced, the healthier an economy is considered to be.
Mikayla is a 14-year-old student. She would no be considered part of the labor forces in the united states.
In the United States, all people over the age of 21 who do no have a full-time job, paying job are considered "unemployed"
An ability to produce more goods and services makes it possible to reduce the number of hours in a workweek.
Stanley received a monthly social security check from the U.S. government. This would not be counted when measuring Stanly's personal income.
Business cycles are the recurring ups and downs of gross national product. (Gross Domestic Product.)
During periods of deflation, prices drop so demand increases greatly.
The money for capital projects comes form two main sources: Stock investments and bonds.
Most business activities occur with a country's own borders.
A country can have an absolute advantage in only one area.
Without foreign trade, all of the items you buy would cost less, because they would not need to be shipped here for other lands.
A nation with a trade surplus is said to have a favorable trade position.
It is possible for the United States to have a trade surplus with one country and a trade deficit with another.
Some countries limit the amount of money their citizens can take out of the country when they travel.
Because of the international trade, all nations of the world can use the same banking systems (payments)
When a country has a favorable balance of payments, the value of its currency is usually constant if rising
Countries that devote most of their economies to agricultural usually provide more and better goods and services for their citizens
A joint venture is an agreement between two or more countries to remove duties and trade barriers on product traded among them
Which if the following is an economic need?
are things you can see and touch.
The United States
The largest producer of goods and services in the world is
People producing goods and services are called
If everybody had an unlimited supply of economic cesrouces, which of the following would not exist?
made an economis tradeoff
Jonah had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friend. Jonah has
Define the problem
What is the first step of the decisio-making process?
Review the decision
What is the final step of the decision-making process?
People deal with the problem of scarcity
in every nation on earth,
What combination of resources will best suit its circumstances, which wnats and needs are crutial, which goods and services to produce
All nations must decide
The goverment of Erwhown owns and controls all economic resources and decides how those resources will be used. The goverment even assigns people specific jobs nad career. Erwhon uses which type of economic system?
the people of the country
who owns the economic resources in a market economy?
Which type of economy is usually centered mainly on meeting peoples's basic needs?
Private enterprise; capitalism; free enterprise
Another name for the economic system in the united states is
Which of the following is NOT an especially important principle of the US econeomic system?
The right of private property
In the US, you can own anything you wnat and decide what you wnat to with it, as long as it does not violate the law. This descirbes the principle of
The rivalry among business to sell their goods and services is know as
Business will be willing to suply larger quantities of the product
Generally, as the price of a product increases,
Many companies begin producing a product in relatively high demand
Which of the follwing scenarios will probably cause prices to drop?
B flat records and tapes
Which of gthe following is probably a competitor to Mary's CD shop?
GDP measures a country's output during
the value of the work you do for yourself
GDP does not include
a fully assembled washing machine
which of the following items would be counted when measuring gdp?
GDP per capita
Diving GDP by the total population of a country results in the country's
Linsay, a stay at home mom with two children
All of the follwoing people are part of the labor force EXCEPT
Becuase the cost of producing goods increase
if wages increase fast than gains in productivity , prices will rise, why?
In the early 1890's, The average ecomplee in the united states worker about how many hours per week?
a company pays for raises for top managment by laying off 60 percent of its emplyees
whihc of the following probably would probably result in a DECREASE in worker productivity?
indicates general consumer spending patterns in the economy
At the peak of the business cycle is
high demand for goods and services
Which of the following is not a characterists of a depression?
If GDP growth slows for at least ___ quartes in a calnder yera, the economy is probbaly is a recission
The ripple effect
A recession often affects some groups of workers in related businesses. The drop in related businesses is called
Is most harmful to poeple living on fixed incomes
Unemplyment will worsen becuase business will tend to hire fewer workers
Suppose wages are going faster than prices. WHat is the most likely effect?
The interest rate banks charge their business customers is the
The supply and demand for money
The major influence of the level of interest rates is
A small business purchases two new pickup trucks
Which of the follwoing is an ecamply of a capital project?
If you purchase a corporate or goverement bod, you are
Is lent to businesses to fund capital pprojects
The money peolpe deposit in bancks and other finanacial institutions
The making , buying, and selling of goods and services within a country is called
The united states conducts trade with over __ countries.
Which of the following countries has an absoluter advantage in coffee production?
Goods and services sold to other countries are called
1 out of 6
about hoe many US jobs depend on international business?
balance of trade
the difference between a countrys total exports and total imports is called the
balance of payments
The difference between the amount of money that comes into a country and the amount that goes out it is called
Suppose you want to make a currency exchange for 50 britich pounds. You must exchange $87.50 US. dollars to get the 50 pounds. WHat is the value of 1 pound today, in realtion to the US dollar.?
increase demand for the nations products and currency
Which of the following scenarios are likely to cause the value of a country's currency to rise?
Which of the follwoing is not a cultural/ social factor of the affects iinternational business?
Literacy lever, technology and agricultural dependency
The key effect on a country's level of economic development are
A tax that a goveremtn places on certain imported product is called an
A limit that a goverment places on the quantity of a product that may be exported or imported during a given period called a
A selected are where products can be imported duty-free and then stroed, assembled or used in manufacturing
What is a free-trade zone?
Have a common external duty on products being imported from nonmembers countries
Commom market members
Selling a right to use some intanginle propery for a fee or royalty is called
Strengthening import quotas
Which of the following is not a goal of the world Trade Organization?
has a low financial investment, so the potentioal financial return is often low
The international trade organization was created in 1944 to provide loans for rebuilding after World War 2.
A country in which an MNC places business activities is called the
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