business text one

standard of living

A loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services is known as:

Specialization

A manufacturing technique, separating processes into distinct tasks to improve productivity, is called:

recession

As buying power decreases, consumers tend to become more value-conscious and reluctant to purchase frivolous or nonessential items. And companies and government at all levels often postpone or go slow on major projects during a recession. In response to a recession, many businesses focus on producing the products and services that provide the most value to their customers.

2

In general, economists define a recession as _______ or more consecutive three-month periods of decline in a country's GDP.

conceptual skills

In order to perform management functions, a manager must possess the ability to think in abstract terms in order to see the "big picture." This skill is known as a(n):

manufactoring business

Intel, for example, produces computer chips that, in turn, are sold to companies that manufacture computers.

perfect competition

Number of Business Firms or Suppliers: many Real-World Examples: Corn, wheat, peanuts, many agricultural products

monopolistic competition

Number of Business Firms or Suppliers: many ex. Clothing, shoes

Oligopoly

Number of Business Firms or Suppliers: few ex. Automobiles, cereals

positives of new century

On the plus side, technology became available at an affordable price. Both individuals and businesses could now access information with the click of a button. They also could buy and sell merchandise online.

adapt

Our economic system provides freedom that allows businesses to

marketing intermediaries

Sony Corporation is a manufacturer that produces stereo equipment, televisions, and other electronic products. These products may be sold to a marketing intermediary—often referred to as a retailer—such as Best Buy or Walmart, which then resells the manufactured goods to consumers in their retail stores.

buisness

Studying _____ can help you develop skills and acquire knowledge to prepare for your future career, regardless of whether you plan to work for a multinational Fortune 500 firm, start your own business, work for a government agency, or manage or volunteer at a nonprofit organization.

equalibrium price

The price at which the quantity demanded is exactly equal to the quantity supplied is called the____________________.

the gross domestic product (GDP).

The total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period (e.g., one-year) is called:

controlling

To be an effective manager, which of the following is one of the four basic management functions that a manager must be able to perform?

It must be organized, it must satisfy needs, and it must earn a profit.

To be successful, a business must perform three activities.

. Peak, recession, the trough, and recovery

What are the four phases in the typical business cycle?

stakeholders

What is the term for all of the different people or groups of people that are affected by the policies, activities, and decisions of a business and whose concerns the business needs to address?

buisness owners

When considering the relationship between profits and business risks, which group of people is paid last?

fical policy

When the government attempts to influence the amount of savings and expenditures by altering the tax structure it is using _______ to offset the effects of a recession or depression.

The producer price index (PPI)

Which measure is an accurate predictor of both changes in the consumer price index (CPI) and prices that consumers will pay for many everyday necessities?

Profit is what remains after all business expenses have been deducted from sales revenue.

Which of the following statements best defines "profit"?

Monopolistic competition

Which term describes the purely competitive market structure where many buyers are trying to satisfy a similar need with uniquely branded products from a relatively large number of sellers (e. g., sports-drinks)?

mixed economy

While the United States' economic system is rooted in laissez-faire capitalism, its government collects taxes and provides services (such as national defense and education), making the United States a ___________________________.

Monopoly

a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry

monopolistic competition

a market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors

Entrepreneur

a person who risks time, effort, and money to start and operate a business

depression

a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession

federal deficit

a shortfall created when the federal government spends more in a fiscal year than it receives

stakeholders

all the different people or groups of people who are affected by an organization's policies, decisions, and activities

human resources

are the people who furnish their labor to the business in return for wages.

marketing intermediaries

buy products from manufacturers and then resell them.

depression

characterized by extremely high unemployment rates, low wages, reduced purchasing power, lack of confidence in the economy, lower stock values, and a general decrease in business activity.

fiscal policy

government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending

peak period

he economy is at its highest point and unemployment is low. Total income is relatively high. As long as the economic outlook remains prosperous, consumers are willing to buy products and services

material resources

include the raw materials used in manufacturing processes as well as buildings and machinery.

financial resources

is the money required to pay employees, purchase materials, and generally keep the business operating.

informational resources

is the resource that tells the managers of the business how effectively the other three resources are being combined and used

economics

is the study of how wealth is created and distributed.

Monopoly

number of suppliers: one ex. Software protected by copyright, many local public utilities

trough

of a recession or depression is the turning point when a nation's production and employment bottom out and reach their lowest levels.

negatives of new century

social unrest, political uncertainty on the national, state, and local levels, global terrorism, and the threat of wars around the globe.

Entrepreneurship

the activity that organizes land and natural resources, labor, and capital. It is the willingness to take risks and the knowledge and ability to use the other factors of production efficiently.

the ownership of the factors of production and how they answer four basic economic questions that direct a nation's economic activity

the economic systems of the world have differed in essentially two ways:

perfect competition

the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product

Capitial

the money, facilities, equipment, and machines used in the operation of organizations. Although most people think of capital as just money, it can also be the manufacturing equipment in a Pepperidge Farm production facility or a computer used in the corporate offices of McDonald's.

profit

what remains after all business expenses have been deducted from sales revenue

negative profit

which results when a firm's expenses are greater than its sales revenue, is called a loss.

recovery (expansion)

-is the movement of the economy from the trough, when a nation's production and employment bottom out and reach their lowest levels, to the next peak in a business cycle. -During the recovery stage of a business cycle, high unemployment rates decline, income increases, and both the ability and the willingness to buy rise.

monetary policy

Federal Reserve's decisions that determine the size of the supply of money in the nation and the level of interest rates

Human resources, material resources, informational resources, and financial resources

For a business to organize and be successful, which of the following four resources must it effectively combine and use?

material resources

For example, Mrs. Fields Cookies needs flour, sugar, butter, eggs, and other raw materials to produce the food products it sells worldwide.

fiscal policy

For example, during the economic crisis that began in 2008, both the Federal Reserve's monetary policies (lower interest rates) and the government's fiscal policies (increased spending) were used to stimulate the economy.

Land and natural resources

elements that can be used in the production process to make appliances, automobiles, and other products. Typical examples include crude oil, forests, minerals, land, water, and even air.

Macroeconomics

examines the economic effect of national income, unemployment, inflation, taxes, government spending, interest rates, and similar factors on a nation and society.

Microeconomics

for example, examines how the prices of homes affect the number of homes individuals will buy.

manufactoring business

process various materials into tangible goods, such as delivery trucks, towels, or computers.

service business

produce services, such as haircuts, legal advice, or tax preparation. -H&R Block provides tax preparation and software and digital products to both businesses and consumers in the United States, Canada, and Australia.

factors of production

resources used to produce goods and services

Competion

rivalry among businesses for sales to potential customers

business

the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs

e-business

the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs through the facilities available on the Internet

buisness cycle

the recurrence of periods of growth and recession in a nation's economic activity

Economics

the study of how wealth is created and distributed

Microeconomics

the study of the decisions made by individuals and businesses

Macroeconomics

the study of the national economy and the global economy

labor

the time and effort that we use to produce goods and services. It includes human resources such as managers and employees.

national debt

the total of all federal deficits

economy

the way in which people deal with the creation and distribution of wealth

Oligopoly

there are few sellers in an oligopoly, the market actions of each seller can have a strong effect on competitors' sales and prices

Recession

two or more consecutive three-month periods of decline in a country's GDP