Business Ch.1 set 1

What is useful in fighting inflation?

raising interest rates

_____________is an economic system in which the government owns and operates basic industries such as utilities, health care, and banking, but individuals can own businesses.

Socialism

What does the American government do to counteract economic contraction?

It reduces interest rates.

________ is the primary goal of business.

profit

Businesses differ from nonprofit organizations in that a business's focus is on

profit.

Which is the BEST example of a business trying to balance the needs of various stakeholders?

Pete's Pest Control Company is trying to develop an eco-friendly insecticide that will eliminate crop-killing pests and still adhere to environmental regulations.

What is true of a capitalist economic system?

Prices of goods and services are determined by supply and demand.

What is true of a free-market system?

all economic decisions are made without government intervention.

Which of these is an intangible resource?

company reputation

In practice, what is a common characteristic of communist economies?

critical shortages of consumer goods.

Which market is most likely to be a monopoly?

electricity supply

A budget deficit occurs when a nation

spends more than it takes in from taxes.