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