Principles of Business -- Unit 1 Test Review

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

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

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

All economic resources have a limited supply.

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

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

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

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

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

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

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

Ethics are principles of morality or rules of conduct.

Government plays a role in all economic systems.

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

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

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

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

All written contracts are legal.

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.

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

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

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

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

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