International Business Chapter 2 Review

A command economy operates on the forces of supply and demand

If you get a full time job after graduating high school the opportunity cost of the decision is

A large agricultural based country is usually more developed than a large manufacturing based

Economics is the study of how

The GDP of France would not include products manufactured in England using French resources

Economy where an individual may own a private business to make a profit

After you take action in the decision making process, why should you review the choice

If the supply of an item decreases the price usually goes up

If consumers want more of a good than the supplied amount

On a graph of supply and demand, the market price is where the supply and demand intersect

Continually rising prices are one sign of a healthy economy

An increase in demand, with no change in supply will usually cause prices to rise

The first step of the decision making process is to evaluate the alternatives

An industry undergoes privatization is changed from private ownership to government ownership

In market economies, most economic decisions are made by the government

The unemployment rate is an indicator of a country’s economic situation because

South Africa has a large percentage of the world’s diamond deposits. This is an example of

Private property, profit motive, and a free, competitive marketplace are characteristics of a

Literacy level is an important measure of a country’s level of economic development

A developing country has an economy between a less developed country and an industrial country

Consumer price index shows

When two countries are compared, the one with the higher total GNP has the stronger economy

Capital resources are expensive and usually used over a period of several years

Capital resources include

The time used to study economics instead of shopping is an example of an opportunity cost