Introduction to Business Chapter 2 Review

Question 1

What refers to the steady increase in the production of goods + services in an economic system?

Accepted Answer

Economic Growth

Question 2

Even though wages tend to increase during inflation, prices rise too fast to keep up.

Accepted Answer

True

Question 3

If you purchase a corporate or government bond, you are considered what?

Accepted Answer

Creditor

Question 4

What is the total amount owed by the federal government?

Accepted Answer

National Debt

Question 5

Higher interest rates mean higher business costs.

Accepted Answer

True

Question 6

What is it called when a government spends more than it takes in?

Accepted Answer

Budget Deficit

Question 7

Increasing retail sales usually points toward barometer growth.

Accepted Answer

False

Question 8

If wages go up faster than prices, businesses hire fewer workers so unemployment worsens.

Accepted Answer

True

Question 9

In times of inflation, the buying power of the dollar increases.

Accepted Answer

False

Question 10

Improvement in management techniques can result in more output per worker.

Accepted Answer

True

Question 11

When saving money in a savings account at a bank, what does the bank pay you to use your money?

Accepted Answer

Interest

Question 12

In the discovery stage, consumers regain confidence about their futures and begin buying again

Accepted Answer

False

Question 13

What represents the cost of money

Accepted Answer

Interest Rate

Question 14

Schools, public buildings, and restaurants are projects the government uses borrowed money for.

Accepted Answer

False

Question 15

When the demand for goods and services is greater than the supply, deflation tends to rise.

Accepted Answer

False

Question 16

People with poor credit ratings pay lower interest rate than people with good credit rates.

Accepted Answer

False

Question 17

What consists of all people above the age of 16 who are actively working or seeking work?

Accepted Answer

Labor Force

Question 18

What involves spending by businesses for items such as land, buildings, and new products?

Accepted Answer

Capital Projects

Question 19

If a company has higher earnings, more people will want to....

Accepted Answer

Buy its stock

Question 20

What is it called when a government spends less than it takes in?

Accepted Answer

Budget Surplus

Questions 20