Bus101 Chapter 1

Competition from companies such as​ BMW, Hyundai, and Honda is a part of Ford Motor​ Company's _____ business environment.

global

Over​ time, prices will tend to be set at the​ _____ price, the price at which the demand and supply curves intersect.

market

The law of supply states that​ _____.

sellers will offer more of a product for sale as the price increases and less of a product if its price decreases

When the price of a product is set below the market​ price, a​ _____ will occur.

shortage

The​ _____ environment includes the​ customs, mores,​ values, and demographic characteristics of the society in which an organization functions.

sociocultural

Inflation is measured by the​ __________.

Consumer price index (CPI)

Which of the following is NOT an element of the external environment that would affect a business?

Corporate culture

The factor of production that includes the physical and intellectual contributions people make while engaged in economic production is known as​ ________.

Labor

Which of the following is the BEST definition of aggregate output?

The total quantity of goods and services produced by an economic system during a given period

What would you need to determine the GDP per capita for a given country for a given year?

The total value of all goods and services a national economy produces during one year using its domestic factors of production plus its population

Which of the following comprises the external environment in which a company operates in proximity to its customers, and gets its revenues?

Domestic business environment

Which of the external environments of business is illustrated by the changes in the supply and demand curves in the housing​ market?

Economic enviroment

To study how individuals and businesses make decisions to best satisfy​ wants, needs, and desires with limited​ resources, you would MOST likely benefit from a class​ on________.

Economics

In your particular​ industry, you notice that there is not either a surplus or a shortage of goods available for​ sale, and that prices are stable. This MOST likely means that your industry is experiencing​ ___________.

Equilibrium

Human resources are examples of .

Factors of production

To determine the for a given country for a given year, you need to know the total value of all goods and services a national economy produces during one year using its domestic factors of production plus its population.

GDP per capita

Which of the following is an example of an economic indicator?

Gross domestic product

is the total value of all goods and services produced within a given period by a national economy through domestic factors of production.

Gross domestic product

​_______ represents the total value of all domestic goods and services produced within a given period by a nation.

Gross domestic product (GPD)

Which of the following is shown on a supply curve graph?

How much of a product will be for sale at different prices

The collapse of the housing bubble and subsequent recession is an example of​ _________.

The business cycle

The pattern of expansions and contractions in a​ nation's economic system is referred to as​ _______.

The business cycle

The domestic business environment is ___________

The external environment in which a company operates in proximity to its customers and gets its revenues

Which of the following BEST defines the business cycle?

The pattern of expansions and contractions within an economy over the short term

Consumers will experience a shortage of products when​ _______.

The quantity of goods demanded exceeds the quantity supplied

Which of the following choices BEST describes productivity?

The relationship between the amount of resources needed to produce a good and the number of goods produced

A business is usually defined as an organization that produces and sells goods and services in order to make a profit for the owners. Profit represents​ __________.

The reward for risking money and time

Speedy Motors is introducing a new hybrid vehicle into the market and wishes to gain a large market share. To gain new customers​ quickly, the company plans to underprice its competitors. This is an example of the law of​ _____.

demand

The term​ ______ refers to the willingness of buyers to purchase a good or service.

demand

The​ _____ business environment includes other businesses within the country in which the business operates.

domestic

During the recession of 2008 through​ 2010, Ford saw sales of its vehicles drop and was forced to reduce production. This decision reflected changes in the​ company's _____ environment.

economic

The economic system in which the government owns and operates all factors of production and makes all business decisions is known as​ _______.

Communism

__________ is a political system in which the government owns and operates all factors of production.

Communism

David​ Rainbolt, the CEO and President of​ BancFirst, referenced the​ "perfect storm" when many homeowners were unable to pay mortgages. One outcome within the housing market was​ ________.

A lower equilibrium price

Which of the following is the BEST definition of an oligopoly?

A market or industry characterized by a handful of sellers with the power to influence the prices of their products

Capital is ___________

A means to finance a new business and sustain that business throughout its life

Which of the following is the BEST definition of a consumer price index?

A measure of the prices of typical products purchased by consumers living in urban areas

Which of the following is the BEST definition of socialism?

A system in which the government owns and operates only selected major sources of production and private ownership of smaller businesses is permitted

When banks relaxed borrowing​ rules, the demand curve for homes shifted to the​ right, causing​ ___________ of homes on the market.

A temporary shortage

When the housing bubble​ burst, the county slid into a recession as​ ________ measured by​ ______, declined.

Aggregate​ output; gross domestic product​ (GDP)

Which of the following is established when a nation allocates resources among its citizens?

An economic system

In​ _______, there are generally only a few large suppliers or sellers of a product or service.

An oligopoly

Which of the following factors of production would you expect a commercial bank to​ provide?

Capital

Because the price of grapes has decreased steadily in recent years, Marco has decided to sell off some of his vineyard because he no longer needs to produce as much. Which of the following supports that Marco has made the right decision?

Law of demand

For which of the following is a fiscal policy used?

Managing a government's revenues

For sellers to sell goods or services and for buyers to purchase goods and services, a method for the exchange that takes place between the two parties, called a ___________ , is used.

Market

Which of the following has a goal of creating shared value between businesses and customers?

Market economy

Which of the following describes the situation when the quantity of goods demanded matches the quantity of goods supplied?

Market price

The U.S. economy is BEST classified as a​ _______.

Mixed market economy

The government bailout of the financial institutions was part of​ __________.

Monetary policy

Which of the following is a characteristic of the economic environment?

Monopolistic competition

Which of the following is a market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors?

Monopolistic competition

Which of the following terms refers to a market or industry in which there is only one producer that can singularly control the prices of its products?

Monopoly

Which of the following is BEST defined as a market or industry where one company can most efficiently supply all needed goods or services?

Natural monopoly

Which of the following statements BEST describes a planned economy?

One in which the government owns and controls factors of production, such as labor

Government regulations are part of the​ __________.

Political-legal enviroment

Which of the external environments of business is illustrated by the changes in the lending practices of financial institutions brought about by the government​ bailout?

Political-legal enviroment

__________ is the difference between a business's revenues and its expenses.

Profit

The difference between a​ business's revenues and its expenses is known as​ _______.

Profit or Loss

__________is the principle that exchange rates are set so that the prices of similar products in different countries are about the same.

Purchasing power parity

What is the BEST example of a perfectly competitive​ market?

Soybeans

Which of the following is NOT an element of the external environment that would affect a business?

Staffing

Which of the following is an example of information resources?

Stock market quote

The ___________ curve is a graph showing how many units of a product will be offered for sale at different prices.

Supply

How does inflation occur?

When the money supply of a country expands but production does not

The National Highway Traffic Safety Commission and the Occupational Safety and Health Administration are part of​ Ford's _____ environment.

​political-legal