Business Final

1. What is the primary difference between a good and a service?

A good is tangible and a service is intangible.

11. The main incentive in capitalism is:

Profit.

14. Upward and downward changes in aggregate economic activity, as measured by GDP, are called:

Business cycles.

16. The two types of inflation are:

Demand-pull and Cost-push.

13. Successful owners and managers must continually study which of the following elements of the environment to remain successful?

Demographic change, social change, evolving economic systems, emerging technology.

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

Factors of production.

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

Inflation.

8. Thom Nielsen owns 500 acres of woodland. His forest is an example of which factor of production?

Natural resources.

9. Demography is the study of:

People's vital statistics.

5. _____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Profit.

18. When the price of gasoline rises by 40 percent, but your salary remains the same,it is an example of a decline in your:

Purchasing power.

12. 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.

2. The __________ of any country is measured by the output of goods and services people can buy with the money they have.

Standard of living.

4. The quality of life is:

The general level of human happiness based on such things as life expectancy, education standard as, health, sanitation, etc.

3. Which of the following countries have a high standard of living?

United States.

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

Capitalism.

7. Which of the following is not an example of a factor of production?

Competition.

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

Cost-push.