Unit 1 chapter 1 & 2 review
Finance
A business function that includes all business activities that involve money is _________
Non price
A competitive advantage based on factors other than price is ________ competition
Inflation
A general rise in prices throughout an economy is called
Oligopoly
A market structure with a small number of business selling the same or similar products
Depression
A period of economic contraction that is severe and lasts a long time is called
Recession
A period of significant decline in the total output, income, employment, and trade in an economy
Weaker economy
A rising unemployment indicates a
Economics
A science that examines how goods and services are produced, sold, and used
Labor force
All the people in a nation who are capable of working and want to work
Business cycle
Alternating periods of expansion and contraction in an economy
Service
An action or task that is performed, usually for a fee
Capitalism
An economic system where the economic resources are privately owned by individuals rather than the government
Market
Anywhere a business exchange takes place
Price fixing
occurs when two or more businesses in an industry agree to sell the same good or service at a set price
Business
term for all the activities involved in developing and exchanging products
Commerce
the activities involved in buying and selling goods on a large scale
commerce
the activities involved in buying and selling goods on a large scale
Federal reserve system
the central bank of the United States is the
Gross domestic product
the market value of all final goods and services produced within a country in a given period of time
Businesses
Entrepreneurs take risks to start and run ____________________. A) economic resources B) opportunity costs C) factors of production D) businesses
Tax and spending
Fiscal policy involves _________ decisions made by the government
Output
Gross domestic product is also known as economic
Market
In a ____________ economy, individuals free to make their own economic decisions. A) market B) command C) centrally-planned D) traditional
Antitrust
Laws that promote fair trade and completion among business ate known as ______ laws
Monopoly
Market structure with one business that has complete control not a markets entire supply of goods and services
Wages
Money earned in exchange for work are ___________
Profit
Money that a business has left over after all the expenses and costs of running the business are paid
Shares
Ownership of a corporation is divided into
Goods and services
Products are commonly known as ___________. A) needs and wants B) goods and services C) factors or production D) functions of business
Inflation rate
Rate of change in prices calculated on a monthly or yearly basis
Need
Something a person must have to survive
Externality
Something that is not directly connected to economic activity, but that affects people, is called 5
Fiscal policy
Tax and spending decisions made by the president and Congress
Interest
The amount a borrower pays for a loan is
Profit
The driving force in choosing to start a business is _______. A) supply and demand B) market forces C) competition D) profit
Gdp
The economic growth rate of a country shows the amount and direction of the change in ______
Factors of production
The economic resources a nation uses to make good fed and supply services for its population
Command
The government makes all the economic decisions for its citizens in a __________ economy
Supply equals demand
The market price for a product is determined at a point where A) demand exceeds supply B) supply exceeds demand C) supply equals demand D) there is both a shortage and surplus
Productivity
The more products a worker produces in a given amount of time, the higher the workers _______
End of expansion
The peak of a business cycle marks the
Supply and demand
The price of product is determine by the law of ____________.
Indicators
The strength of an economy can be measured using the certain economic _______-
Opportunity cost
The value of the net best option that is not selected is ____________________. A) profit B) standard of living C) opportunity cost D) time utility
Needs and wants
Utility describes the characteristics of a product that satisfy ______. A) scarcity B) needs and wants C) opportunity costs D) supply and demand
Shortage
When demand for a product becomes greater than available supply, a(n) _________ develops A) surplus B) shortage C) equilibrium D) competition
Scarcity
When demand is higher than the available resources
Trade-off
When something is given up in order to gain something else
Specialization
Which is not a stage for the business cycle Specialization Expansion Peak Recession
Capitalism
Which of the following is NOT a function of business? A) capitalism B) marketing C) finance D) production
What are the factors of production?
Which of the following is NOT an important economic question related to scarcity that every nation must answer? A) what should we produce? B) how should we produce it? C) for whom should we produce it? D) what are the factors of production?
Promote monopolies
Which of the following is not a role of government in an economy Promote competition Provide a legal framework Promote monopolies Manage the economy
Stock market
Which type of spending is not a component of gdp A) consumer B) business C) government D) stock market
Capital
________ is all of the tools, equipment, and machinery used to produce goods and services
Place
___________ utility is added when products are available at convenient places
Customer
an individual or group who buys products
Product
anything that can be bought or sold
Monetary policy
Central bank regulation of money supply and interest rates
