GEB 1011 - Exam 1 Review

Effectiveness means producing the desired result.

Often in business the greater the risk, the ________.

Customers, staff, stockholders, suppliers, creditors, who stand to gain or lose by the policies of a business represent

Which of the following continents is home to the largest percentage of the world's population?

Occurs when a country has a monopoly on producing a product or is able to produce it at costs well below other countries

The United States' highest trade deficit is with China.

The quantity of a good or service that producers are willing to sell at different prices during a specific time period

Deflation means prices are declining and is an indication that economic conditions are deteriorating.

The United States is the largest exporter in the world.

Michelle recently started selling her invention. Michelle is a(n) 

One advantage of free trade is

Erin, an American citizen, says that her laptop was made in Japan. Erin purchased a(n)

A favorable balance of trade occurs when the value of

The measure of the general well-being derived from political freedom, safety, edu, and a clean environment

) ________ is considered by some to be the father of modern economics.

A typical demand curve shows that

A key to economic growth and development is to

Frictional unemployment occurs because the economy is experiencing a recession.

The practice of selling a product in foreign countries for a lower price than the good is sold in the producing country

A business incurs a ________ if its costs and expenses exceed its revenues.

Successful firms follow a customer-driven strategy, as opposed to the management-driven strategy used in the past.

The three countries participating in NAFTA are

A free-trade agreement is likely to result in

Exporting is the selling of products to another country.

Starting a business always involves ________

The major advantage rich nations have over poor nations is an abundance of land and labor.

Importing is the selling of products to another country.

A favorable balance of trade occurs when the value of a nation's exports exceeds its imports.

Socialism and communism are both variations of a free-market economy.

Honda and Hyundai have insourced for years to design and manufacture cars in the United States. Insourcing

The standard of living for a nation's people depends mainly on:

A free market is one in which decisions about what to produce and in what quantities are made by

Since 1975, the U.S. has had a(n) ________.

One of the greatest concerns associated with capitalism is that

One of the major advantages to firms involved in e-commerce is that the technology is still so new that the online firms

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to

Historically jobs lost in one sector of the economy have been replaced by increased employment opportunities in other se

An oligopoly is a market that is characterized by

The foundation of the U.S. economic system is based on

The total amount of money that businesses take in by selling goods and services is called ________.

) The theory of comparative advantage exists because

Inflation refers to a general rise in the prices of goods and services over time.

The United States enjoys a trade surplus in the global market.

________ studies the operation of a nation's economy as a whole.

The name of a free-market economic system in which most of the factors of production & distribution owned by individuals

A common characteristic of most entrepreneurs is that they:

Outsourcing means selling goods and services to people in other countries.

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Producing a high-quality product will ensure success in the competitive environment.

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

________ looks at the behavior of individual people and organizations in specific markets.

The study of how society employs limited resources to produce goods & services,& how it distributes them among citizens

The ________ is the total value of a nation's exports compared to its imports measured over a specific period of time.

Like most nations, the United States has a mixed economy.

In a mixed economy, the government's goal is to grow the economy and maintain some measure of social equality.

The total value of a country's output of final goods and services in a given year is known as the gross domestic product

When competing in global markets, business organizations utilize a variety of strategies to reach foreign buyers.

Contract manufacturing requires heavy start-up costs by the domestic company.

For-profit businesses and nonprofit organizations are similar in that they both:

The market situation in which there are many sellers in a market and no seller is large enough to dictate the price

An advantage of licensing is that licensors spend little or no money to produce and market their products. These costs a

An economy is said to be in a recession if GDP declines for two or more consecutive quarters.

An increase in productivity means that workers is now able to produce more goods and services in the same amount of time

Kira is a financial planner who helps people find ways to save for retirement and lower their taxes. Kira is employed in

________ exists when the entire supply of a good is controlled by a single seller.