Business CH1-3

What are 5 ways to measure a nation's economic activity?

(GDP), standard of living, unemployment rate, rate of inflation, national debt

During depression there is...

High unemployment and low production and services

In command economy

Highly skilled workers, earn the same as low-skilled workers

To avoid failure a business can modify

IT's product, it's services, and it's business

Market research provides information that can help a business

Identify opportunities, evaluate demand, and respond to market goods and needs

People who make the goods and service in which they are paid are ...

Labor resources

An___ is an economic system in which economic decisions are made in the market place

Market economy

The total amount of money a government owes is...

National debt

Coal, iron and oil are___ resources

Non renewable

What is the fundamental difference between personal and decision making process

Not all personal decision require the 5 step-decision making process. However business mangers must make thoughtful decisions that consist with their companies goals not just there own.

Deciding to use a resource for one purpose and giving it up to use it for something else is...

Opportunity cost

The federal reserve is a government agency that guides the economy by

regulating the amount of money in circulation, controlling interest rates, and controlling the amount of money loaned

During the early 1600s, the U.S. economy was

service based

A business may stop manufacturing a product because

there is a decreasing demand for it.

When developing a product or service, a business must do all the following accept

Create a need for the product or service

Any commercial activity the seeks profit by providing goods and services to other for an exchange for money is...

Business

List the 5 essential steps of the decision making process.

1. Identify the situation 2. Identify the possible course of actions 3. Determine the pros and cons 4. Make decisions 5. Evaluate your decision

What are 3 basic economic questions?

1. What should be produced 2. How should it be produced 3. Who should share in what is produced

Describe 3 characteristics of a command economy

1.The government controls and owns all the resources and businesses 2. Highly skilled workers earn the same wages as low skilled workers 3. There is little choice of what to buy

Explain and give and ex, of how a country's economy could depend primarily on its natural resources

Answers may vary but a nations crop could be in such demand worldwide that it's exports could be its primarily source of revamped, ex. May include Latin American countries whose major crops and exports are coffe land bananas of middle east nations that supply oil to other countries

Building, delivery trucks, and equipment are examples of...

Capital resources

Things used to produce goods and resources are...

Capital resources

An economic system in which a central authority makes the key economic decisions

Command economy

How do consumers effect business

Consumer decide what kind of goals and services they want and where they will buy them. When a consumer decides not to purchase a business products or services the business usually fails.

The study of how individuals and groups of individuals strive to satisfy their needs and wants by making choices is...

Economic

Why does unemployment increase during recession

Economic activity slows down, businesses produce less, so they need fewer workers

Figures used to measure economics performed are...

Economic indicators

Explains the difference between entrepreneurial resources and labor resources

Entrepreneurial resources are people who start a business that produce goods and services to satisfy needs and wants. Labor resources are people who produce the goods and services

The __ is the point at which the quantity demand and quantity supplied meet

Equilibrium price

An example of a public want is a family wanting a new car

False

Competition among business hurts consumers

False

Unlike goods, services are performed for free

False

Physical products are...

Goods

the total value of goods and services produced in a country during one year is....

Gross domestic product (GDP)

Competition is possible because companies have the freedom to produce...

Poor quality clothing at low costs

In an market economy, resources are ___owned

Privately owned

Money left after a business has paid the cost of providing its goods and services is

Profit

The reward for satisfying the needs and wants for consumers and businesses is

Profit

A peak of economic activity

Prosperity

wants shared by many people are

Public wants

When economic activity slows down is called

Recession

Some natural resources such at cattle and wheat are...

Renewable

Businesses provide goods and services to satisfy wants and

Resources

What are the 4 major economic shifts ( in chronological order) the united states has experienced

Service based, agricultural based, industry based, and information based economy

Economics with greater governmental control of resources are considered more...

Socialistic

The level of material comfort as measured by the goods and services that are available is

Standard of living

I'm an command economy, resources and business are owned and controlled by...

The government

In the market economy, the higher the price

The less consumers will buy

How do businesses effect companies

The wealth created by a business benefits the entire community because businesses pay taxes and provide jobs

Business supply goods and services:

To make a profit

Most people have unlimited wants for goods and services

True

Resources are items used to make and provide goods and services

True

The result of a government spending more on programs than it collects in taxes

budget deficit

The rise and fall of economic activity over time is called

business cycle

What does a government often do with a budget surplus?

cut taxes, reduce the national debt, or increase spending for certain programs

A general decrease in the price of goods and services is

deflation

Scarcity occurs when

demand exceeds supply

Economic indicators measure

how much a country is producing, whether its economy is growing, how the country compares to others

The act of gathering and Analyzing information about the wants, needs and preferences of consumers in a certain market is..

market research

An ___ is a combination of a market economy and a command economy

mixed economy

Most nations have a

mixed economy

What are 4 stages of the business cycle

prosperity, recession, depression, recovery