BSN Exam 1 Review

2 main factors of production

Merger between two or more companies that are involved in totally unrelated business activities.

Policies pertaining to taxes and gov spending

total value of final goods and services produced within a nation's borders in a given year

Full responsibility to pay the debts or obligations of a legal entity.

when a country is thriving the federal reserve may decide to

Resources that contribute to wealth

study of an entire country's economy

statistic used to measure the pace of inflation or deflation

trade not restrained by government interference or regulation

who manages money supply and interest rates

Someone who risks time and money to start a business

set of values, beliefs, rules, language, and institutions held by a specific group of people

use of government regulations to limit the import of goods and services

producing a good more effectively or efficiently than one can produce other goods.

difference between money flowing in from exports, & money leaving for imports, plus money flows coming from other

Tax on imported goods

A free market does NOT align with capitalism

The amount of output per unit

Joining of two or more companies in the same industry and/or with similar product lines.

The invisible hand does NOT support the idea of a free market

Key industries are owned by gov and meant for social equality

selling goods to another country

tax revenues < gov spending

A _______ curve shows the relationship between the price of a good and the quantity people are willing and able to buy

prohibit trade with a specific country

When we have a shortage prices will...

reports price changes at the wholesale level

study of how to increase resoures and create conditions to make better use of resources

when a large number of firms produce goods that are similar but customers believe there is a difference

general rise in prices

Revenue of $500 and expense of $300. What is the profit?

supply > demand

most nations today are:

Study of a population by age, gender, etc

owner of a corporation

General well being of society

economy based on a free market, profit, private ownership

a major advantage of corporations

How many goods someone can buy with them money they have

advantage of franchise

idea that when people try to benefit their own lives, they benefit the economy overall

imports > exports

Producing goods using the least amount of resources

quantity of a good or service that producers are willing to sell at different price

A partner who invests money in a business does not take an active role in managing the operation

What determines to produers on how much to produce in a free market?

tariffs are designed to raise money for the government

Corporate structure in which investors have limited liability; similar to S corp without eligibility requirements.

Favorable government policy is