Intro to Business - Chapter 1

The situation in which the average of all prices of products is rising is called:

inflation

The Federal Reserve System can do all of the following EXCEPT:

lower taxes

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

A market in which there are a large number of firms that differentiate their products is called:

monopolistic competition

_____ is the money a company earns from providing services or selling goods to customers.

Revenue

The unemployment rate is the percentage of the total work force that is not working but is:

actively looking for work

Which of the following factors would most likely result in a shift in the supply curve?

an increase in the price of raw materials used in the production process

Which of the following businesses provides its customers with a good?

bicycle manufacturer

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

federal budget deficit

The most basic measure of economic growth is the:

gross domestic product

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing.

Which of the following statement about oligopolies is true?

In an oligopoly, three or four firms usually dominate the marketplace.

The national debt is the:

cumulative total of past national deficits

A decline in real GDP that lasts for two consecutive quarters is called a(n):

recession

The quality of life is:

the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time

Market equilibrium is:

the point at which quantity supplied equals quantity demanded

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:

socialism

Which of the following statements about strategic alliances is true?

A strategic alliance is sometimes called a strategic partnership.