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Intro to Business Chapter 1 Business Essentials Flashcards | StudBud
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Intro to Business Chapter 1 Business Essentials
Intro to Business Chapter 1 Business Essentials
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End of Chapter 1 Review for Business Essentials Textbook by Ebert/Griffin
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
Which measure indicates the prices of products purchased by consumers living in urban areas?
GDP per capita
Economic indicators
Consumer price index
Standard of living
2
This is an indication of national economic growth, shown by measuring aggregate output?
Economic indicators
Gross domestic product
Real growth rate
Gross national product
3
What occurs when the quantity demanded exceeds the quantity supplied?
Equilibrium point
Shortage
Demand deficit
Surplus
4
Tax increases and decreases are a form of fiscal policy.
False
True
5
Where can a firm find statistical information on the strength and performance of an economy?
Standard of living indexes
Economic indicators
Business cycle reports
Gross domestic product
6
Total quantity & quality of goods & services that people in an economic system can purchase?
Business cycle supply
Standard of living
Demand and supply schedule
aggregate output
7
In a market system, individuals R limited by what they can buy & how they can spend their money
False
True
8
Inflation results in increased purchasing power for the consumer.
False
True
9
What would lead some to be an entrepreneur & influence choice of goods or services to produce?
Profit
Freedom of choice
Monopolistic competition
Competition
10
What is the point at which the supply curve and the demand curve intersect on a graph?
Equilibrium price
Decision point
Perfect price
Parity point
11
What is the primary force that determines what a firm buys and sells?
The private enterprise system
Equilibrium price
Laws of supply and demand
Economic resources
12
What is the willingness and ability of producers to offer a good for sale referred to as?
Free market economy
Private enterprise
Supply
Law of supply
13
What type of policy is made up of fiscal and monetary policy?
Tax
Employment
Trade
Stabilization
14
The person who accepts the risks and opportunities inherent in a new business opportunity?
Human resources
Home country economic systems managers
Entrepreneurs
Capital managers
15
Which type of system depends on individual producers & consumers to create supply and demand?
Planned economy
Private economy
Market economy
Socialism
16
What term denotes a nation's basis for allocating its resources among its citizens?
National regulations
Economic system
Distribution network
Ownership processes
17
What does productivity measure?
How much gross national product results from inputs of labor
Total value of goods & services produced by national economy
The standard of living relative to purchasing power parity
How much a system produces w/ resources needed to produce it
18
Which of the following is one of the elements required in private enterprise?
The right to ownership of property
The opportunity for market leadership
Freedom from foreign competition
Numerous regulatory agencies
19
Product differentiation is common in a market characterized by monopolistic competition.
True
False
20
Why is (GNP) considered a less valuable indicator of domestic economic performance than (GDP)?
GNP is not adjusted for inflation.
GNP only considers economic performance within United States
GNP does not compare output to population rates.
GNP does not consider where economic performance was located
21
Physical resources include the data and other information used by businesses.
False
True
22
Which is the BEST explanation for why standard of living only increases through productivity?
Prices are determined by the standard of living.
Productivity increases the money supply in an economy.
Goods are available without having additional resources.
Purchase power increases when there is more consumer choice.
23
The amount of money that a government owes its creditors is referred to as that country's
GNP.
consumer price index.
inflation rate.
national debt.
24
Government can influence the availability of capital through use of the Federal Reserve System.
False
True
25
The main measure for growth in the business cycle is aggregate output.
False
True
26
Buyers are able to satisfy the demand of the consumer, yet have some product remain unsold?
Surplus
Shortage
Demand deficit
Equilibrium price
27
What is profit?
Revenue generated by goods and services
Increases in a corporation's stock price
Increases in income from year to year
Difference between revenues and expenses
28
In a market economy, a centralized government controls factors of production & decision making.
True
False
29
Which term refers to the pattern of short-term ups and downs in an economy?
Business cycle
Balance of payments
Aggregate output
Demand and supply schedule
30
What marks the key difference between economic systems?
The way basic necessities are determined
The way rules and regulations are legislated
The way goods are transported within their borders
The way the factors of production are managed
31
What is needed to gain a competitive advantage over competitors?
Ability 2 produce goods and services 2 sell at a high profit
Ability to produce goods and services 2 sell at fixed profit
Ability to leverage the internet to sell in a global market
Ability to produce goods or services efficiently at a profit
32
The primary measure of growth in the business cycle is inflation.
True
False
33
The process for converting government enterprises into individually owned firms known as?
Demand assessment
Entrepreneurship
Privatization
Profit maximization
34
Which environment is NOT important dimension of a business organization's external environment?
The corporate cultural environment
The sociocultural environment
The global business environment
The technological environment
35
When there are many small firms in a specific industry, what is likely to occur?
Private enterprise
Perfect competition
An oligopoly
Competitive advantage
36
Economic systems differ in how factors of production are used.
False
True
37
The following represents the ownership of resources used in a private enterprise system?
Increased profits
Freedom of choice
Private property rights
Perfect competition
38
When a new product has high demand in the market, how should a company react?
Create an artificial shortage of the product.
Maintain the current supply until demand falls.
Decrease the supply of the product.
Increase the supply of the product.
39
Total quantity of goods/services produced by an economic system during a given period?
Aggregate output
The business cycle
The consumer price index
Gross domestic product
40
In perfect competition, which of the following conditions must prevail?
All firms must adhere to cost and pricing standards.
It is relatively difficult to enter the industry.
All firms in a given industry must be small.
The number of firms in the industry must be limited.
