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