Unit 1 Exam Review BUSI 1301

When the United States levies a tax on coffee from Colombia, this type of tax is a(n)...

export duty

If your work can be "digitized", then your work can be...

globalized

For a business, stakeholders represent...

groups that are affected by a business's operations

Opportunity cost refers to...

have something you want or you will have to give up something

Stagflation can be best described as...

high inflation and a recession

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United states for resale are engaging in...

importing (Trade deficit)

Apple iTunes is a good example of what type of E-Commerce?

Business to Consumer (B2C)

How does monetary policy work?

By changing the interest rate and influencing the money supply

The President is tired of devaluing the dollar and wants to now strengthen it against other foreign currencies. He needs your advice on how to do this. What advice would you give him?

By making other countries dollar the same price as U.S dollars

How should a business person deal with a conflict of interest?

By taking a situation for employer's interest rather than their own

_____________ refers to the willingness and ability of buyers to purchase goods and services.

Demand

For the most part, the United States economy is based on?

Free-Market Economy

The current political administration has just stated that they will continue to devalue the US dollar. What do you expect to happen?

Higher import prices, Oil/Gas prices will continue to rise, Inflation will continue to rise, Interest rates will be low, Gold and Silver will maintain/rise, and pay down/off credit card debt

What does the government hope will result from devaluation of the U.S. dollar?

Imports decrease and exports increase

In a global economy, economists consider ____________ to be key economic resource.

Interest

Entrepreneurs and private-sector investors are entitled to profits, after taxes, and even state-owned enterprises are expected to at least break even. What type of economic system is this?

Mixed economy

Two major policy tools are available for controlling economic activity. They are ___________.

Monetary and Fiscal Policy

Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor and texture. This type of market structure is known as _____________.

Monopolistic Competition

Which of the following is NOT considered a factor of production (Remember The factors of production).

Natural Resources, Human resources, Capital, Knowledge/Innovation, and Entrepreneurs

Which country listed has the lowest national debt when compared their GDP?

Russia

During an economic recovery, consumer spending _________ and unemployment __________.

increased;decreased

The equilibrium/market price is established when the quantity ______________.

is equal

Business ethics...

are the application of moral standards to business situations

Fluctuations in a nation's economy are referred to as its...

business cycle

India has acquired a(n) ___________ in software development with its educated workforce and low wage scale.

comparative advantage

Globalization is viewing the world as...

one giant market

Social responsibility...

the recognition that business activities have an impact on society and the consideration of that impact in business decision making

There are 3 billion people in the world who lack basic access to internet technologies and might never catch up to be a part of the new world economy. This problem is called the...

un-flat world

Tony is upset because his friend Jerry was offered an interest rate 3 percent less than what Tony was offered by the same mortgage company. This mortgage company's actions were...

unethical

Organizations must always look for opportunities to create ______________ for their customers in order to achieve long term success.

value

Online retail sales, known as e-tailing, now account for what percentage of total sales in the United States?

50%

Today, approximately _________ percent of Americans access the internet at home, school, work or public-access sites.

75

On average, how many jobs must the United States create every month just to keep up with the new eligible people entering the job market?

125,000 jobs

The National Debt of the United States is approximately ______________ and the Social Security/Medicare deficit is approximately ______________.

19.9 Trillion; 1.13 Trillion

Online auctions such as eBay are an example of what type of e-commerce.

Consumer to Consumer (C2C)

The United States largest trading partner in terms of both imports and exports is...

Canada

The Wealth of Nations data suggests that the next two emerging economic super powers of the world will be which two countries?

China and India

In a ___________ system, the government owns the majority of the nation's major industries, but still allows private ownership in less crucial areas.

Communist

What are the basic rights within a private enterprise system?

Private Property, Competition, Profits, Freedom of Choice

With unemployment decreasing, durable goods orders increasing, housing rises, and capital spending budgets getting larger, what phase of the general business cycle is the overall economy headed towards?

Recovery

What are the four protected consumer rights?

Safe products, Be informed, To Choose, and Be Heard

Entrepreneurs have the most economic freedom in which type of economy?

Socialism

The e-commerce triangle rests on the following three pillars:

Speed, Efficiency, and Collaboration

Sofia is an investment adviser and wants to recommend a stock she happens to own. How should Sofia best deal with this potential conflict of interest?

Take advantage for the employer's interest rather than her own

A trade deficit occurs when...

a country imports more than it exports

An absolute advantage occurs when a country can maintain ___________.

a product at a lower absolute cost than another

According to economists, inflation is...

a steady rise in the prices of goods and services throughout the economy

When both China and India develop a(n) _________________ huge opportunities will occur in the global economy.

middle class