business fundamentals

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.

Demand-pull

The _____ prints money and controls its circulation.

Federal Reserve System

Hudson Kling mows yards during the summer. Which of the following is an example of revenue for Kling?

The $10 tip Mrs. Pierre gave him for doing such a fine job of mowing her yard.

The unemployment rate is the percentage of the total work force that is not working but is:

actively looking for work

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communism economic system

Corrine Attlee has always enjoyed cooking more than doing anything else. Atlee has decided to quit her job as a college professor and invest her life savings in starting a restaurant. Attlee is an example of a(n):

entrepreneur

When demand and supply meet, the price of the product or service is established. This is the point of:

equilibrium

The most basic measure of economic growth is the:

gross domestic product

As one of the factors of production, capital includes all of the following EXCEPT:

money

In 1993, Purdue Pharmaceuticals of Stamford, Conn. applied for the first in a series of patents on Oxycontin, a painkiller. The U.S. Patent and Trademark Office (PTO) granted those patents based on the manufacturer's contention that the drug contained a novel innovation: It had been engineered so that only a very small dose was required for the drug to be effective for 90 percent of patients. As a result of the patent Purdue was the only company that could sell Oxycontin. Thus, Purdue became an example of which of the following market structures?

monopoly

In 1947, the largest brewer in the U.S., Schlitz, had a 4.57 percent share of the domestic market. (Anheuser-Busch was number four in those days). The top ten brewers, including the number one brewer, had 29.29 percent of the domestic market. Over 70 percent of the domestic market was controlled by "all other" brewers. By the year 2001 the largest brewer was Anheuser-Busch, with a 54.76 share of the domestic market. The top ten brewers held 97.04 percent share of the domestic market in 2001. Thus, the brewing industry in the U.S. became a(n) _____ market structure.

oligopoly

There are a large number of small firms that provide entertainment for children's birthday parties. There is little difference between one company's inflatable slide and another company's. Clowns and magicians do similar tricks. Both the sellers and the parents buying the entertainment are well informed as to price and sources although sometimes it is difficult to hire the same entertainer two years in a row because the business is so easy to open and close. What type of market structure do local party entertainers depict?

oligopoly

In Canada, the government owns the communications, transportation, and utilities industries, while most other activity is carried on by private enterprise. Canada is an example of:

social capitalism

The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:

socialism

Archer Daniels Midland Co. (ADM) has joined with Baron Spices and Seasonings to market spices, seasonings and herbs to the foodservice industry. ADM will provide the raw materials, and Baron will act as the distributor and use its already existing relationships with participants in the food service industry to make a success of this:

strategic alliance

_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.

Cost-push

Which of the following businesses provides its customers with a good?

bicycle manufacturer

In 1998 the tourism industry in Egypt had 43 percent unemployment due to an economic downturn that gripped the country as a result of an increase of terrorists' activities. The workers in the tourism industry were experiencing _____ unemployment.

cyclical

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have