Business 1201

Approximately what portion of the U.S. total production is made up of things other than consumer goods?

30%

best describes the relationship between productivity and economic growth

An increase in productivity results in economic growth because a larger number of goods and services are produced by a given labor force.

factor of production

Any resource used in the productive process, which includes land, labor, capital, and entreprenuership.

What is the focus of the study of microeconomics?

Decisions made by individuals

What is the likelihood of a business that is started today still being in operation ten years from now?

It is unlikely because over half of all new small businesses fail.

monopolistic competition

In monopolistic competition there are many buyers along with a relatively large number of sellers.

What are the characteristics of perfect competition?

Many buyers and many sellers

Marion owns stock in a corporation that builds houses. He read in the finance pages of the newspaper today that the country has experienced two or more consecutive three-month periods of decline in the gross domestic product, that interest rates for home loans remain high, and that unemployment is rising. If you were his stockbroker, would you advise him to sell his stock?

Marion should sell his stock. The signs he has seen show that the country is entering a recession so fewer people will be able to buy houses and the company may become financially unstable.

resources must a business combine in order to be successfully organized?

Materials, human, financial, and informational

At what stage in the business cycle do companies become more focused on value in their production decisions?

Recession

three types of business organizations today?

Services, marketing intermediaries, and manufacturing

In the colonial period, cash crops, primarily tobacco, grown in Virginia were traded almost exclusively with England with the majority of goods being imported into America from England. How have changes in the global market affected U.S. importing today?

The United States has more trading partners with imports and exports travelling throughout the world.

What is the best definition of productivity?

The average level of output per worker per hour

technological challenges facing businesses

The current technological environment is undergoing constant change in manufacturing equipment, distribution of products, and communication with customers.

Ford, Chevrolet, and Dodge, are among the top U.S. auto manufacturers and sellers. Because the production of vehicles requires a sizeable investment, it is difficult to enter this market and the sellers are quite large. Which of the following best describes the market or industry in which these companies operate?

These businesses operate in an oligopoly.

What are government tax dollars used for?

To purchase products and resources needed to provide services

The definition of deflation is

a general decrease in the level of prices.

Our economic system provides freedom that allows businesses to

adapt

A market in which there are few sellers is called

an oligopoly.

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

business

Due to the forces of competition, providing products and services that meet the needs of customers is essential for a business to survive in a(n) ______ economy

capitalistic

Which of the following is a feature of laissez-faire capitalism?

competition

Which of the following is a characteristic of a depression?

high unemployment

For U.S. government entities such as the federal government, states, and municipalities to provide services, they collect revenue from

individuals and businesses in the form of taxes.

The competition among businesses to sell their goods or services to potential customers

is referred to as rivalry.

When Exxon/Mobil, Shell, and a few other firms dominate the American oil market, this is an example of

oligopoly

The attempt by a seller to set its product apart from the competition to obtain limited control over the price of the product is known as

product differentiation.

During the economic periods of ______ , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.

prosperity

Rebekah has very little money but would like to start a business that will meet the needs of customers. She has reviewed a variety of economic and business publications and found one business area that seems to fit her capital requirements. Businesses in this area employ 86 percent of the nation's workforce. She now just needs to determine the specific type of business in this area she will open. What type of business will she open?

service business

Elizabeth lives in a country where individuals may own their own property. Some of the very wealthy people own oil refineries and have stock in computer companies but the government owns the railroads, airports, ports, and roads in addition to the utility companies, communications companies, banking, and steel production facilities. What kind of economy best characterizes this nation?

socialist

The subjective measure of how prosperous a society or individual is in terms of obtaining want-satisfying services and goods is called

standard of living

best explains the use of gross domestic product (GDP) in world economic analysis?

the GDP figure facilitates comparisons between the United States and other countries because it is the standard used in international guidelines for economic accounting.

The national debt can be defined as

the total of all federal deficits in the United States.

According to the authors, many individuals, business leaders, and politicians,________that the future of the nation's economy__________ .

worry, could lead to another bumpy road and recession

closely explains the purpose of economics as used by experts?

Experts use economics to explain the choices we make and how these choices change as we cope with the demands of everyday life.

Businesses in Finland sell a wide variety of products with manufacturing, woods, telecommunications, metals, engineering, and electronics being the primary exports. Businesses are free to sell any legal product they want in any manner they desire as long as it does not violate any laws or ordinances. The nation has a very liberal welfare policy with most citizens, even at an early age, receiving monthly pension checks from the government. What type of economic system is employed in Finland?

Finland has a free market capitalistic economy.

is the total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period - usually a one-year period.

Gross Domestic Product

What is the term applied to the efforts of individuals to produce and sell products and services that satisfy societal needs through the Internet?

e-business

What is the name given to the study of how wealth is created and distributed?

economics

______is the study of how wealth is created and distributed.

economics

Samuel Slater's contributions to the development of American business included, among other things, the use of

factory system

When the U.S. government spends more than it receives within a fiscal year, this is called the

federal deficit

When a government influences savings and changes the levels of government spending, this is referred to as

fiscal policy

When a nation reduces income taxes for individuals so they will have more income to spend as a means of stimulating the economy, the nation is exercising its

fiscal policy

What is the term given to the finances of a firm that has expenses in excess of its sales revenues?

loss

_______ are affected by anything that affects supply and demand.

market places

Sam's Club stores would most likely be classified as

marketing intermediaries

Sam's Club stores would most likely be classified as

marketing intermediaries.

When a business cycle enters a trough of a recession or depression, the federal government can use _______ and ________ to offset its effects.

monetary and fiscal policies

The Federal Reserve's actions to set interest rates and the size of the money supply in the nation is called

monetary policy

Which of the following would be considered capital or capital goods?

money

Terrence and Solet are walking down the sidewalk in the retail district of their city. Solet has entered all of the 20 clothing stores on the street and shopped in each of them. Terrence notices that there are many clothing stores on the street and more clothing stores further up the street. He also notices that the street is packed with people shopping for clothes. He ponders these facts and thinks about the marketing situation. What kind of market competition is represented by these stores?

monolistic

A market in which similar but not identical products are available for sale would be known as a

monopolistic competition

Mary chooses to work only 30 hours a week as an administrative assistant while trying to shield herself from additional responsibilities at work. Mary seems to value

more free time

During which phase of the business cycle does a business typically introduce new products?

peak