Final Business Reveiw

cyclical unemployment

- demand for goods and services in an economy decreases forcing companies to lay off workers in an effort to cut costs - results directly from cycles of economic upturn and downturn

how can monetary policy be expanded

- lower short term interest rates - reduce reserve requirements - expand open market operations (buy securities) - decrease discount rate

PERT chart

- project management tool that provides a graphical representation of a project's timeline - breaks down the individual tasks of a project for analysis

positioning innovation

- purpose of a product is changed - product itself remains the same but it marketed differently - Levi's used to be heavy duty work pants

What does the federal reserve do?

- supervise the banking system - issue new currency - expand monetary policy

helping children is the most important criteria, which weight should it be assigned in the decision matrix - .25 - .325 - .6 - .100

.60

jurisdictional strike

An illegal strike resulting from a dispute between two unions about which union has jurisdiction over certain jobs

sympathetic strike

a strike in which the strikers have no direct grievance against their own employer but attempt to support or aid usually another group of workers on strike

job enlargement

adding extra tasks

the category of GDP called gross private domestic investment includes - inventories held over from previous years - all purchases of capital goods - purchases made by private individuals - all exports of goods and services

all purchases of capital goods

discretionary income

amount of money that an individual or family has to invest, save, or spend after taxes and necessities are paid off

arbitrator

an independent person or body officially appointed to settle a dispute

when management and union leaders negotiate but cannot reach an agreement, either one may call for an - probation - arbitrator - grievance - injunction

arbitartor

product innovation

business either creates or improves a product

the payment of taxes to the federal government allows it to provide goods and services to

businesses and households

which of the following actions would the federal reserve system take to expand monetary policy - increase reserve requirements - raise the federal discount rate - buy securities on the open market - open additional financial institutions

buy securities on the open market

the use of robots in assembly line work is a form of specialization involving

capital goods

as the gdp increases, it is easier for all of government to

carry out their functions

elastic demand

changes in a product's price cause corresponding changes in consumer demand

the value of a country's currency declines when it implements policies that restrict trade. the primary factor affecting the change in value of the currency in this situation is

civil unrest

grievance

complaint that an action by management has violated the rights of an individual as set out in the collective agreement or law

licensing

contractual agreement between two business entities where one company leases its intellectual property to another company - company using a design of a popular character like mickey mouse on their products

what is one reason why the overall unemployment rate understates the actual employment situation - the rate is not seasonally adjusted - discouraged workers are not included - the rate trelects regional differences - underemployed people are listed

discouraged workers are not included

franchising

distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor name

a manager allowing employees to set the pace of their work is an example of providing job - enrichment - satisfaction -enlargement - rotation

enrichment

what is a decision about production that a business might make based on the law of diminishing returns

establish a desired level of production

When a business cycle is affected by international relations, new discoveries, and social or political changes, it is said to have been

external

the highest level of labor union organization is the - federation - national

federation

higher prices that result from a tax on luxury goods are likely to result in

fewer customers and less productivity

process innovation

finding ways to make processes faster, cheaper or more efficient

what type of government policy involves raising or lowering taxes and increasing or decreasing government spending

fiscal

What is the benefit of public welfare programs to businesses in a private enterprise economy?

funds received by recipients are spent in businesses

standard of living

goods and services people have/population

when consumer spending is high, the economy usually is in a - recession - growth stage - depression - inflationary period

growth stage

gantt chart

helps teams to plan work around deadlines and properly allocate resources

during the peak phase of a business cycle, a business could be expected to have - low profits - reduced sales - staff reductions - high prices

high prices

during the peak phase of a business cycle, a business could be expected to have - low profits - staff reductions - high prices - reduced sales

high prices

law of diminishing returns

if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached where additions of the input yield progressively smaller, or diminishing, increases in output

what do businesses usually expect will increase when the economy experiences a continued rise in the level of inflation

interest rates

a section of an amusement park uses cartoon characters from a tv show even though they don't own or manage the park in any way

licensing

what is important info that businesses consider when deciding whether it would be profitable to increase production

marginal cost

injunction

order issued by a judge that forces a person or entity to perform an action or stop taking a certain action

productivity

outputs divided by inputs

during which phase of the business cycle would there most likely be shortages of workers in certain skill areas

peak

theory x

people dislike work, have little ambition, and are unwilling to take responsibility - managers with this assumption motivate their people using a rigid "carrot and stick" approach which rewards good performance and punishes poor performance

in which occupation would employees be organized into craft/trade unions - restaurant workers - salesperson - hotel employee - plumber

plumber

why might businesses decide to hold on to products to sell later when the economy is experiencing high levels of inflation - prices will continue to rise - income will remain constant - taxes will limit production - cash will be in short supply

prices will continue to rise

inelastic demand

quantity demanded is not very responsive to changes in price - necessities like food

a 6 month decline in GDP

recession

one of the functions of certain types of taxes is to - control employee compensation - regulate business activity - decrease employee liability - limit business profit

regulate business activity

one of the main functions of a country's monetary policy is to

regulate the economy

when a nation's inflation rate is low, prices tend to

remain stable

one way for a business to increase productivity is to increase its - research and development - prices - imports - environmental concern

research and development

paradigm innovation

shifting of an underlying mental model via a change - henry ford and motorcar - iphone

what is a program that some managers implement to achieve quality in all aspects of business

six sigma

an important aspect of continuous quality improvement within an entire business organization requires management to - solicit input from employees - hire additional staff to oversee quality control - obtain daily reports to monitor progress - make as few changes as possible

solicit input from employees

an important aspect of continuous quality improvement within an entire business organization requires management to - obtain daily reports to monitor progress - solicit input from employees - hire additional staff to oversee quality control - make as few changes as possible

solicit input from employees

six sigma

statistical and data driven process that works by reviewing limit mistakes or defects - 99.9999% of all opportunities to produce some feature of a part are statistically expected to be free of defects

vernon was the milkman until supermarkets started selling milk right in the store. his job is an example of

structural unemployment

limited strike

takes place over a specified time period

excise tax

tax imposed on the sale of specific goods or services - fuel, tobacco, tires, etc.

marginal cost

the cost added by producing one additional unit of a product or service

disposable income

the money available to invest, save, or spend on necessities and nonessential items after deducting income taxes

what is the effect on society of a falling growth rate in productivity

the standard of living drops

if interest rates go down

the stock market will go up

underemployment

there are not enough jobs for qualified workers

what is one of the main reasons why government levy taxes - to raise revenue - to control costs - to limit salaries - to regulate money

to raise revenue

cash flow

total amount of money being transferred into and out of a business

what is the most common type of labor specialization

trade or profession

a country's easy monetary policy is often used to correct the problem of - globalization - high taxes - unemployment - import quotas

unemployment

structural unemployment

unemployment resulting from industrial reorganization, typically due to technological change

frictional unemployment

unemployment which exists due to people being in the process of moving from one job to another

perverse incentive

unintended and undesirable result of an incentive - Chinese peasants paid for every fossil fragments so they smashed the fossils they found into multiple fragments to get paid for

fiscal policy

use of government spending and tax policies to influence economic conditions

utiliy

usefulness or enjoyment a consumer can get from a good or service - drinking purified water has more utility than drinking dirty water

how long do most business cycles last - varying lengths of time - two full years - at least 10 years - two consecutive quarters

varying lengths of time

which of the following represents a good time for a country's government to use it's fiscal policy to increase taxes

when inflation in too high

which of the following is a good time for a country's government to use its fiscal policy to increase taxes - when a recession lasts too long - while the economy is contracting - when inflation is too high - while the economy is expanding

when inflation is too high

what type of strike occurs when members of a union local stop work without the consent of their national organization - jurisdictional - limited - sympathetic - wildcat

wildcat

which is a paradigm innovation - windows computer operating system - energy saving light bulbs - latest model of Honda Civic - rechargeable batteries

windows computer operating system

wildcat strike

work stoppage undertaken by employees without the consent of their respective unions