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