Business 100 Chapters 1-3

The total value of the goods exported by Maulini, a South American country, in the last fiscal year was lower in comparison to the total value of the goods imported by it. Given this information, Maulini had a _____ in the last fiscal year.

trade deficit

In the context of key economic considerations when entering a foreign market, the energy infrastructure in a country most likely includes _____.

utilities

_____ is an agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses.

A strategic alliance

Identify a true statement about the Federal Reserve.

It manages the monetary policy of the United States

Identify a true statement about balance of payments.

It typically corresponds to the balance of trade

In the context of supply and demand, which of the following statements is true of the free market system?

People tend to buy more products with lower prices

Which of the following is a feature of capitalism?

Private-sector businesses are free to make their own choices regarding what they will produce.

In the context of international trade restrictions, _____ are taxes levied against imports.

Tariffs

In the context of the strategies for reaching global markets, which of the following is a disadvantage of foreign outsourcing?

The adherence to ethical standards by foreign producers is at risk.

In the context of the strategies for reaching global markets, which of the following statements is true of direct investment?

The cost involved in direct investment is high.

Which of the following is a recent advancement in the Western European countries that developed powerful socialist economies in the decades after World War II?

They have imposed stiff austerity measures to control government spending

Balance of trade incorporates trade with all foreign nations.

True

Identify a true statement about the debt ceiling.

Voting on the debt ceiling happens separately from voting on taxes and spending.

The economic system of the United States is called _____

capitalism

In the context of economic systems, the two key phases of a business cycle are:

contraction and expansion

A(n) _____ is a structure for allocating limited resources.

economic system

Microeconomics focuses on:

individual businesses

In the context of the economic differences among nations in international trade, effectively serving less-developed markets requires:

innovation

The basic mission of the _____ is to promote global economic cooperation and stable growth.

international monetary fund

A _____ is formed when two or more companies share resources, risks, and profits without actually merging, to pursue specific opportunities.

joint venture

Clark and Nestor start a catering business together. They sign a legal contract that states that the business is owned by them. The agreement also states that they will have an equal share in the profits of the business and will be equally liable for any losses incurred by the business. This scenario exemplifies _____.

partnership

In the context of factors of production, the value of all natural resources tends to:

rise with high demand, low supply, or both.

In the context of key economic considerations when entering a foreign market, the transportation infrastructure in a country most likely includes _____.

roads

Giovani, a baker, makes exactly 20 loaves of brown bread each day. These loaves of bread are delivered to the 20 individuals who have placed an order with him. The quantity associated with such a demand and supply pattern is called _____.

the equilibrium quantity

Which of the following countries is involved in countertrade?

An Asian country that provides sugarcane to an African country in exchange for jute

In the context of international trade, which of the following statements is true of comparative advantage?

As technology changes, nations may gain or lose comparative advantage in various industries.

Which of the following is a similarity between socialism and communism?

Both have a strong involvement of the government.

Despite the growth rates in many high-population countries being weak, most of these nations remain ahead of the United States in terms of development and prosperity.

False

Gross domestic product (GDP) measures the total value of all imports and exports of a nation on a quarterly basis

False

In the context of the strategies for reaching global markets, importing is a strategy to seek foreign customers.

False

Mora, an American jewelry manufacturing company, wants to import diamonds from Renoria, an Asian country. However, the officials in charge of the trade in Renoria agree to formalize the transaction only if they are paid a certain amount of money for their personal benefit. Since American businesses are prohibited from offering bribes to any foreign nation, Mora has to look to another exporter of diamonds. In the given scenario, Mora is most likely facing the barrier of _____.

Legal differences

Alice, the global marketing director of a multinational electronic goods manufacturing firm, is assigned the task of expanding her firm in new markets. She learns that hiring labor is expensive and that the required technical manufacturing equipment is unavailable in the international market. In this scenario, which of the following is most likely affecting the global trade of Alice's firm?

Limited access to factors of production

Trade restrictions were created to:

Protect domestic industry

Identify a true statement about pure market economies.

They do not make sufficient provision for the old, the young, and the sick

The controversial $700 billion economic bailout plan passed by Congress in early October 2008 was called the _____.

Troubled Assets Relief Program

In the context of capitalist economy, the right to free choice directly feeds competition

True

Social security taxes are a source of revenue for the U.S. federal government

True

In the context of factors of production, which of the following is a natural resource?

land

When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice—the value of the production that a country gives up in order to produce the first product—represents the _____ of producing the first product.

opportunity cost

In the context of international trade restrictions, _____ are limitations on the amount of specific products that may be imported from certain countries during a given time period.

quotas

Over the past 30 years, most economies of the world have begun moving toward the market end of a spectrum that ranges from pure planned economy at one extreme to pure market economy at the other. This has led to:

reduced red tape in socialist governments

Which of the following statements is true of nonprofit organizations?

the employ people and take in revenue

The central banking system of the United States is the Federal Reserve

true

Which of the following is an example of a natural monopoly?

Public utilities

The central banking system in the country of Darmos issues a notice to all its commercial banks stating that they must hold funds that are equal to 48% of the deposits held by their customers. In the given scenario, the central banking system's notice exemplifies _____.

The reserve requirement

Pyoiunalek's, a restaurant chain, markets and endorses its businesses in other countries by offering buyers the rights to launch and operate the restaurant in that country. It lends financial and marketing assistance to the buyers. In this scenario, Pyoiunalek's is employing the strategy of _____ to reach global markets.

foreign franchising

Brixbee Inc., a European electronics company, has given a domestic firm in Lougard, an Asian country, the rights to manufacture and market its product within Lougard. In this scenario, Brixbee Inc. is most likely involved in _____.

foreign licensing

In the context of the barriers to international trade, promoting a "buy national" consumer attitude among local people is most likely a(n) _____.

nontarrif barrier

In a business cycle, the _____ is the transition period between contraction and expansion.

recovery

Deflation refers to a period of falling average prices across an economy, which is a sign of economic trouble that goes hand in hand with very high unemployment

true