Principles of Business -- Unit 1 Test Review

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.

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

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

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

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

Government plays a role in all economic systems.

All economic resources have a limited supply.

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

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

All written contracts are legal.

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

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

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

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

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

Ethics are principles of morality or rules of conduct.

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

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

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

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

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

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

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.