Business Test prt. 2

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.

demand-pull

In perfect competition, there is

a large number of sellers producing nearly identical products

When demand and supply meet, the price of the product or service is established. This is the point of

Equilibrium

Upward and downward changes in aggregate economic activity, as measured by GOP, are called

business cycle

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

cost-push

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

Which of the following is the best example of a good

the life guarding class you took last summer

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play

Because the government owns the factors of production in public lands, postal service, and some water resources, Great Britain is considered a(n)

mixed economy

_____ refers to a government's programs for controlling the amount of money in circulation.

monetary policy

When a single firm accounts for 100 percent of industry sales, it is an example of

a pure monopoly

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

The implementation of an expansionary policy by the Federal Reserve would result in:

lower interest rates

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

profit

Today companies are focusing on ________, which involves building, maintaining, and enhancing interactions with costumers and other parties so as to develop long-term satisfaction through mutually beneficial partnerships

relationship management

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing.

The quantity of a product or service that businesses will make available at various prices is called:

supply

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?

$125

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

inflation

When the Federal Reserve implements a(n) ______, it increases the growth of the money supply.

expansionary policy