What is entrepreneurship?

Refers to the skills of people who run a business

In a business cycle, recession

represents contraction where the economy slows

3 basic economic questions?

What to produce? How to produce? For whom to produce?

The flow of money between people and business

The 4 Stages of the Business Cycle are:

Peak, Recession, Trough, Recovery

A form of government in which the government owns everything

does not provide for everyone's basic needs

Measurement of wholesale price levels in the economy.

What is nationalization?

The process by which the government takes ownership and control of business

An economic system based on private ownership and businesses

What is privatization?

When governments sell off businesses to individuals

What are economic resources?

Land, labour, capital and entrepreneurship

GDP Gross Domestic Product

total value of goods country produces in a year

Business cycle: Expansion...

Wages increase, low unemployment

What is a traditional economy?

An economy that is based on what your ancestors did.

determined by measuring price of a standard group of goods

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Unit 3 Business Basics Part 3 (Economics)

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Questions 24

Answers

1
What is entrepreneurship?
Refers to the people who run a business
An entryway on a ship
Refers to the workers in a company
Refers to the skills of people who run a business
2
In a business cycle, recession
represents the top of the business cycle
represents contraction where the economy slows
represents the bottom of the business cycle
represents expansion in the economy
3
3 basic economic questions?
When to produce? What to produce? For which to produce?
What to produce? How to produce? For whom to produce?
When to produce? How to produce? For what to produce?
What to create? How to crush it? For whom to send it to?
4
What is an economy?
Taxes paid for all people
a community of people
The flow of money between people and business
A financial institution
5
Entrepreneurs take risks.
True
False
6
What is socialism?
the wealthy controlling the society
someone who is in need of social welfare
one person in charge of all wealth
Equal distribution of property
7
The 4 Stages of the Business Cycle are:
Employment, Unemployment, Reemployment, Max employment
Through, Recession, Peak, Recovery
Peak, Recession, Trough, Recovery
Peak, Recession, Peak, Recession
8
Business cycle: Trough...
Economy stops growing
High unemployment, jobs decline
Rock bottom, low spending
Wages increase, low unemployment
9
What is communism?
A form of government that focuses on people's rights
A form of government ruled by a king
A form of government in which the government owns everything
A form of government that allows voting
10
Examples of Capital
Machines
Coal
Gasoline
Money
11
A market economy
does not provide for everyone's basic needs
limits the choices of goods and services available
offers a high degree of certainty for its worker
permits extensive government intervention
12
Producer price index
How much things cost
Measurement of wholesale price levels in the economy.
Measurement of price levels in companies
13
Scarcity is defined as
The ability to scare someone
Trading one item for another
Lacking a resource
Having more than you need
14
What is nationalization?
The process by which private businesses work in market economys
The process by which the government regulates the prices of goods
The process by which the government creates laws to protect worker rights
The process by which the government takes ownership and control of business
15
What is Capitalism?
The name of a government
A name of a political party
Farms and businesses should be owned by the workers
An economic system based on private ownership and businesses
16
What is privatization?
When governments sell off businesses to individuals
When governments reduce spending and increase taxes
When governments remove rules for businesses
When governments take over businesses in a country
17
What are economic resources?
Households and firms
Land, labour, capital and entrepreneurship
Imports and exports
Leakages and injections
18
Goals of a healthy economy:
Increase productivity
All of the above.
Decrease unemployment
Maintain Stable Prices
19
GDP Gross Domestic Product
exports minus imports
total money a country has
total value of goods country produces in a year
20
What won't businesses do under a command economy?
Determine who will buy goods
Set their own price
Make their own decisions
determine how much they will produce
21
Business cycle: Expansion...
Wages increase, low unemployment
Wages decrease, high unemployment
Rock bottom, low spending
Economy stops growing
22
What is a traditional economy?
An economy that is based on what your ancestors did.
An economy that is controlled by the market.
An economy that the government maintains.
There is no such thing as a traditional economy.
23
3 Types of Economic Systems
Resources, Tradition, command
Traditional, Command, Market
Command, services, Market
Competition, Services, Tradition
24
consumer price index
inflation rate
the percentage rate of change in price level over time
determined by measuring price of a standard group of goods
a representative collection of goods and services

Unit 3 Business Basics Part 3 (Economics) Flashcards | StudBud