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Intro to Business Chapter 1 Business Essentials Flashcards | StudBud
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Intro to Business Chapter 1 Business Essentials
Intro to Business Chapter 1 Business Essentials
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End of Chapter 1 Review for Business Essentials Textbook by Ebert/Griffin
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
When there are many small firms in a specific industry, what is likely to occur?
An oligopoly
Competitive advantage
Perfect competition
Private enterprise
2
Which term refers to the pattern of short-term ups and downs in an economy?
Balance of payments
Aggregate output
Demand and supply schedule
Business cycle
3
What is needed to gain a competitive advantage over competitors?
Ability to produce goods and services 2 sell at fixed profit
Ability 2 produce goods and services 2 sell at a high profit
Ability to produce goods or services efficiently at a profit
Ability to leverage the internet to sell in a global market
4
In perfect competition, which of the following conditions must prevail?
The number of firms in the industry must be limited.
All firms must adhere to cost and pricing standards.
It is relatively difficult to enter the industry.
All firms in a given industry must be small.
5
When a new product has high demand in the market, how should a company react?
Increase the supply of the product.
Create an artificial shortage of the product.
Maintain the current supply until demand falls.
Decrease the supply of the product.
6
Total quantity & quality of goods & services that people in an economic system can purchase?
Standard of living
Demand and supply schedule
Business cycle supply
aggregate output
7
Why is (GNP) considered a less valuable indicator of domestic economic performance than (GDP)?
GNP only considers economic performance within United States
GNP is not adjusted for inflation.
GNP does not consider where economic performance was located
GNP does not compare output to population rates.
8
Economic systems differ in how factors of production are used.
True
False
9
What term denotes a nation's basis for allocating its resources among its citizens?
Ownership processes
Distribution network
National regulations
Economic system
10
The process for converting government enterprises into individually owned firms known as?
Profit maximization
Demand assessment
Privatization
Entrepreneurship
11
Which type of system depends on individual producers & consumers to create supply and demand?
Private economy
Socialism
Market economy
Planned economy
12
Inflation results in increased purchasing power for the consumer.
False
True
13
Government can influence the availability of capital through use of the Federal Reserve System.
False
True
14
What is the point at which the supply curve and the demand curve intersect on a graph?
Equilibrium price
Decision point
Perfect price
Parity point
15
What occurs when the quantity demanded exceeds the quantity supplied?
Shortage
Demand deficit
Surplus
Equilibrium point
16
The person who accepts the risks and opportunities inherent in a new business opportunity?
Entrepreneurs
Capital managers
Human resources
Home country economic systems managers
17
The amount of money that a government owes its creditors is referred to as that country's
GNP.
consumer price index.
inflation rate.
national debt.
18
What marks the key difference between economic systems?
The way goods are transported within their borders
The way rules and regulations are legislated
The way basic necessities are determined
The way the factors of production are managed
19
This is an indication of national economic growth, shown by measuring aggregate output?
Real growth rate
Gross domestic product
Gross national product
Economic indicators
20
In a market system, individuals R limited by what they can buy & how they can spend their money
False
True
21
In a market economy, a centralized government controls factors of production & decision making.
False
True
22
Product differentiation is common in a market characterized by monopolistic competition.
True
False
23
Which is the BEST explanation for why standard of living only increases through productivity?
Goods are available without having additional resources.
Purchase power increases when there is more consumer choice.
Prices are determined by the standard of living.
Productivity increases the money supply in an economy.
24
What does productivity measure?
How much a system produces w/ resources needed to produce it
The standard of living relative to purchasing power parity
How much gross national product results from inputs of labor
Total value of goods & services produced by national economy
25
Which environment is NOT important dimension of a business organization's external environment?
The corporate cultural environment
The global business environment
The technological environment
The sociocultural environment
26
What is the primary force that determines what a firm buys and sells?
Economic resources
Laws of supply and demand
Equilibrium price
The private enterprise system
27
Physical resources include the data and other information used by businesses.
True
False
28
The main measure for growth in the business cycle is aggregate output.
False
True
29
What would lead some to be an entrepreneur & influence choice of goods or services to produce?
Freedom of choice
Competition
Monopolistic competition
Profit
30
What type of policy is made up of fiscal and monetary policy?
Tax
Employment
Trade
Stabilization
31
Which of the following is one of the elements required in private enterprise?
The opportunity for market leadership
Freedom from foreign competition
Numerous regulatory agencies
The right to ownership of property
32
Which measure indicates the prices of products purchased by consumers living in urban areas?
Economic indicators
Consumer price index
GDP per capita
Standard of living
33
Buyers are able to satisfy the demand of the consumer, yet have some product remain unsold?
Equilibrium price
Demand deficit
Shortage
Surplus
34
Total quantity of goods/services produced by an economic system during a given period?
Gross domestic product
The consumer price index
The business cycle
Aggregate output
35
Where can a firm find statistical information on the strength and performance of an economy?
Standard of living indexes
Gross domestic product
Business cycle reports
Economic indicators
36
What is the willingness and ability of producers to offer a good for sale referred to as?
Supply
Private enterprise
Law of supply
Free market economy
37
What is profit?
Revenue generated by goods and services
Increases in a corporation's stock price
Difference between revenues and expenses
Increases in income from year to year
38
The primary measure of growth in the business cycle is inflation.
False
True
39
Tax increases and decreases are a form of fiscal policy.
True
False
40
The following represents the ownership of resources used in a private enterprise system?
Increased profits
Private property rights
Freedom of choice
Perfect competition
