Business Essentials Chapters 1 & 2 Review

Spending by businesses for items such as land, buildings, and equipment.

Productivity would likely increase as a result of

Production output in relation to a unit of input. (Basically how much one worker can produce.)

Quantity of a good or service that producers are willing and able to provide.

Things available to be used to produce goods and services.

Quantity of a good or service that consumers are willing and able to buy.

What is the basic economic problem?

Equity refers to

In which type of economy are the people given the most economic freedom?

The place where supply and demand are equal.

Things that add comfort or pleasure to life.

The total value of all goods and services produced in a country in one year.

Economic system in which the resources are owned and controlled by the people of that country.

Private ownership of resources by individuals rather than by the government.

A period in which demand, production and GDP growth decreases & unemployment begins to rise for 2 consecutive quarters.

In which of the following types of economies is the government's role the largest?

Economy in which goods and services are produced in the same way it has always been done.

Process of choosing which needs and wants will be satisfied.

A period marked by high unemployment, weak consumer sales, and business failures.

A period in which unemployment begins to decrease, consumer demand increases and GDP begins to rise.

Which of the following is a natural resource?

Deflation results in lower buying power of money.

Phase of the business cycle in which unemployment is low, businesses are producing lots and wages are good.

Represents the debt of an organization.

Economy in which resources are owned and controlled by the government.

Most economies in the world are mixed economies.

The method a country uses to answer the three economic questions.

Person who buys goods and services.

As competition increases, prices will usually

The unemployment rate includes people who are retired, too young to work and people who choose to stay home.