BUS009 Study Guide

As a factor of production, capital includes money.

False

Economics is the study of a society's financial institutions.

False

Some global corporations are large enough to create major changes in the external environment.

False

Many people consider knowledge to be a fifth factor of production.

True

Monopolistic competition is a market structure in which entry is easy.

True

People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.

True

The higher the price of a good or service, the greater the amount a producer is willing to supply.

True

_____ refers to a government's programs for controlling the amount of money in circulation.

monetary policy

As one of the factors of production, capital includes all of the following EXCEPT:

money

Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?

social change

_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.

Cost-push

_____ is the quantity of a good or service that people are willing to buy at various prices.

Demand

Labor, as a factor of production, refers to:

all workers in business

In terms of economic trends, the complete opposite to communism is:

capitalism

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

In a(n) _____, a few sellers can exert substantial control over prices.

oligopoly

Within the music industry, four companies (UMG, Sony-BMG, EMI, and Warner) control 90 percent of the music you hear. The music industry operates in a(n) _____ market structure.

oligopoly

Demography is the study of

people's vital statistics

Forty-five percent of the labor force in Armenia is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism. What type of unemployment would such a mismatch of ability and job requirements cause?

structural

Structural unemployment is unemployment that results from:

the changing structure of an industry