Principles of Business -- Unit 1 Test Review

Generally, a lack of competition will result in lower prices for goods and services.

A joint venture is an agreement among two or more countries.

A person who buys and uses goods and services is called a consumer.

All written contracts are legal.

Money for capital projects comes from: stock investments, bonds, and personal savings.

In the US, people over the age of 21 who do not have a full-time, paying job are “unemployed.”

Info the government collects in a census can help a business decide where customers live.

One component of GDP is the value of a country’s exports plus imports into the country.

Things that are required in order to live are known as wants.

Government plays a role in all economic systems.

Mikayla is a 14-year-old student and would not be considered part of the labor force in the US.

Economic growth refers to an increase in the production of goods and services in a system.

Top management has little impact on the ethical conduct of a business.

Ethics are principles of morality or rules of conduct.

Buildings, equipment, and supplies are examples of natural resources.

The major challenge facing businesses today involves learning how to manage a workforce.

During periods of deflation, prices drop so demand increases greatly.

Socially responsible actions benefit employees and the community and cost nothing.

A public utility company is a company that is owned by the government.

When a country has a favorable balance of payments, the value of its currency is constant.

Today it is difficult to define economies in terms of national borders.

Communism refers to the private ownership of resources by people rather than by the government.

An ability to produce more goods and services in less time makes it possible to reduce hours.

Countries that devote most of their economies to agriculture provide more and better goods.

All economic resources have a limited supply.