Introduction to Business Chapter 2

Question 1

_______refers to money spent by a business for an item that will be used over a long period

Accepted Answer

capital spending

Question 2

A period n the business cycle when demand begins to decrease, unemployment begins to rise, etc

Accepted Answer

recession

Question 3

A period of economic recovery

Accepted Answer

is characterized by a rise in GDP

Question 4

The total dollar value of all final goods&services produced n a country during one year is____

Accepted Answer

GDP

Question 5

Inflation can sometimes occur when the demand for goods and services is greater than the supply

Accepted Answer

true

Question 6

The interest rate financial institutions are charged to borrow funds from Fed Reserve banks is

Accepted Answer

discount rate

Question 7

in the U.S., the labor force consist of people above age_who R actively working or seeking work

Accepted Answer

16

Question 8

People who buy bonds are called

Accepted Answer

creditors

Question 9

salaries and wages as well as investment income and government payments to individuals

Accepted Answer

personal income

Question 10

Int he U.S., the personal savings rate is rather high

Accepted Answer

false

Question 11

Inflation

Accepted Answer

can sometimes stimulate economic activity if it is kept low

Question 12

The production output in relation to a unit of inpur

Accepted Answer

productivity

Question 13

Some nations have such abundant resources that they never experience economic bad times

Accepted Answer

false

Question 14

The main cause of unemployment is reduced demand 4 the goods&services being provided by workers

Accepted Answer

true

Question 15

Represents ownership in a corporation

Accepted Answer

stock

Question 16

Only final goods are counted when GPD is measured

Accepted Answer

True

Question 17

The last depression in the U.S. occurred during the 1980s

Accepted Answer

false

Question 18

A decrease in the general level of prices

Accepted Answer

deflation

Question 19

An increase in GDP per capita means that

Accepted Answer

an economy is growing

Question 20

People w/poor credit ratings pay a higher interest rate 2 borrow $ than people w/good credit

Accepted Answer

true

Question 21

The total amount owed by the federal government is called the

Accepted Answer

national debt

Question 22

The sales of durable and nondurable goods bought by consumers is called

Accepted Answer

retail sales

Question 23

The money for capital projects usually comes from

Accepted Answer

all of the above

Question 24

If wages go up faster than gains in productivity cost of producing goods decreases&prices fall

Accepted Answer

false

Question 25

A period n the bus. cycle when people who want 2 work r working, wages r good, &GDP increases

Accepted Answer

prosperity

Question 26

represents debt for an organization

Accepted Answer

bond

Question 27

An increase in the general level of prices

Accepted Answer

inflation

Question 28

A well-run business should never need to borrow money

Accepted Answer

false

Question 29

The movement of the economy from one condition to another and back again is called the

Accepted Answer

business cycle

Question 30

When you buys a corporate bond, you have lent money to the company

Accepted Answer

true

Question 31

Which type of business sells stock

Accepted Answer

corporation

Question 32

Which of the following would NOT be included in a measure of GDP?

Accepted Answer

You give your car a tune-up and change the oil yourself

Question 33

The portion of people in the labor force who are not working

Accepted Answer

unemployment rate

Question 34

A period n the bus. cycle marked by a long period of high unemployment, week sales,&failures..

Accepted Answer

depression

Question 35

A________is a number that compares prices in one year with some earlier base year

Accepted Answer

price index

Introduction to Business Chapter 2

Questions 35

Introduction to Business Chapter 2

Questions 35