Business 1301

Which of the following is an example of a nonprofit organization?

Hollorg, a community museum that is funded by a trust and is free for public use

A__________refers to the overage that occurs when more money flows into a nation than out of that nation.

balance of payments surplus

A college has contracted a construction company to build a bookstore for its new campus. In the context of factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _____.

capital

The economic system of the East Asian nation of Xinzen calls for public ownership of all businesses. The government has complete control over the market, and individuals do not have individual rights and the freedom to make choices. In this scenario, the economic system followed by Xinzen is _____.

communism

Openi, an island nation, is able to increase its textile production without having to compromise on the production of other materials. This is in contrast to other nations that need to lower the production of other materials to increase their textile production. In this scenario, Openi has a _____ in textile production.

comparative advantage

CuberTech, an American electronics company, set up its production facilities in Chuaga, an Asian country, because the workers in Chuaga work for about one-third the pay of American workers. This substantially lowered CuberTech's cost of production. This scenario is an example of _____.

direct investment

Rolliand Bank is going through a financial crisis. Therefore, it takes a loan from the Federal Reserve. The bank has to repay the loan within a year, and it also has to pay a monthly interest of 6% to the Fed. In this case, the 6% interest rate that the Fed charges from Rolliand Bank is the _____.

discount rate

In the context of the fundamental principles of a free market system, the _____ is associated with the point at which the quantity demanded of a product equals the quantity supplied.

equilibrium price

refers to selling products in foreign nations that have been produced or grown domestically

exporting

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

joint venture

Twilight Glitters sells ornate diamond jewelry. The company obtains diamond ore from the Yakutia region in Russia. In this scenario, the ore obtained by Twilight Glitters can be classified as

natural resources

national policies designed to restrict international trade, usually with the goal of protecting domestic businesses

protectionism

The district of Dansas in Nerito, a European country, is a major producer of walnuts. All producers in the district sell packaged walnuts. The market structure is flexible enough for producers to enter and leave the market as and when they wish, but no single producer has control over the prices of the product. Which of the following market structures exists in Dansas?

pure competition

Black Marbles Resort is a resort in Miami. The members of the marketing department of the resort work hard to develop long-term associations with the resorts customers. They call them to receive feedback about their recent visits to the resort and offer huge discounts on their next visit. In the context of the history of American business, the marketing department is most likely using concepts that were popularized during the _____.

relationship era

In the year 2002, Timothy wanted to purchase a house. As he did not have sufficient funds, 4 / 29 TEST BANK FOR BUSN 11TH EDITION KELLY he decided to take a loan. Given his low credit score, it was highly unlikely that he would be able to repay the borrowed money. However, he was able to secure a loan despite his reduced ability to repay the loan. Timothy most likely applied for a _____.

subprime mortgage loan

In the context of international trade restrictions, governments tend to use protective _____ to shelter industries that are crucial to the domestic economy.

tariffs

The repayment of the debt by the U.S. federal government is likely to result in an increase in

taxes

In the context of monetary policy, when the economy is weak, the Fed:

buys government securities on the open market.