Economic Utility
Gross Domestic Product
Profit
Government and Business
Chance
100
What is utility, and what are the five forms?
-Utility is the ability to satisfy consumer wants or needs. -The four forms of utility are price, place, form, task, and time.
100
What is Gross Domestic Product (GDP)?
GDP is the final market value of all goods and services produced within a country’s geographic boundaries in a year’s time.
100
What is profit, and why do business owners take risks?
-Profit is the monetary reward for taking a risk and investing in a business. -The three reasons business owners risk investments are to make a profit, be their own boss, and to provide for the community.
100
What are the four stages of the business cycle?
The four stages of the business cycle are expansion, peak, contraction, and trough.
100
What is economizing?
Economizing is deciding what goods or services should be provided/purchased to gain the most satisfaction.
200
What is form utility?
Form utility is how useful something is as a physical product.
200
What is the difference between trade surplus and trade deficit?
-Trade surplus is the amount which the value of a country’s exports exceeds the costs of its imports. -Trade deficit is the amount which the cost of a country’s imports exceeds the value of its exports.
200
What are income and expenses?
-Income is money received for supplying goods and services. -Expenses are money that a business spends.
200
What is the difference between monetary policy and fiscal policy?
The difference between monetary policy and fiscal policy is that monetary policy is used to determine the amount of money that is in circulation and the interest rates. Fiscal policy uses taxation and government spending to influence the flow of money.
200
What is the difference between a buyer's and seller's market?
-A buyer’s market is when prices are low because of large supply and small demand. -A seller’s market is when prices are high because supply is low and demand is high.
300
What is possession utility?
Possession utility is usefulness gained by purchasing the product.
300
What is inflation, and what is its effect on consumer buying power and salary?
-Inflation is the excess demand that results in a rapid increase in prices, causing consumers to pay more for the same products. -When there is inflation, a person’s salary has less buying power.
300
What is the difference between operating expenses and cost of goods?
Operating expenses are costs of keeping a business running, while cost of goods is the expenses to produce the product.
300
What are the disadvantages of outsourcing?
The disadvantages of outsourcing are eliminating direct communication between a company and its clients, being unable to control some aspects of the company, and the company becoming dependent on its outsource providers.
300
How does competition affect consumers and producers?
-Competition affects consumers: develop new products, improve existing products, provide more and better services, wider selection of goods and services, and keeps prices down. -Competition affects producers: encourage them to enter the market, encourage efficient operation, and profit.
400
What is place utility?
Place utility is when the product is available in the place where it’s needed.
400
When does a recession exist?
-A recession exists when the economy is slow for two consecutive quarters.
400
What is the difference between gross profit and net profit?
Gross profit only takes cost of goods from income, and net profit takes both cost of goods and operating expenses from income.
400
What is the difference between a price ceiling and a price floor?
-A price ceiling is the maximum price set by the government for particular goods and services that they believe are being sold at too high of a price. -A price floor is the minimum price set by the government for particular goods and services that the government believes are being sold at too low of a price.
400
Describe Perfect Competition, Monopolistic Competition, and Oligopolies.
Perfect Competition is when many businesses sell identical products to many buyers. Monopolistic Competition is many businesses selling similar products with few differences. Oligopolies are when few businesses sell all products, while Monopolies are when one business sells all the products.
500
What is time utility?
Time utility is when the product is available at the time that it’s needed.
500
What are the five ways government can fight inflation?
-The five ways the government can fight inflation are restricting the amount of money in circulation, spending less on goods and services, raising the prime interest rate, increasing the discount rate for banks, and raising taxes.
500
What are the five factors that affect profit?
The five factors that affect profit are economy, demand, chance, price, and expenses.
500
What is the Federal Reserve, and what is it responsible for?
1. The Federal Reserve makes loans to commercial banks and is authorized to issue the Federal Reserve notes that make up America’s entire supply of paper money, and it is responsible for monetary policy, regulating banks and protecting consumers’ credit rights, maintaining the stability of America’s financial system, and providing financial services to the US government, public, financial institutions, and foreign financial institutions.
500
What are the four economic activities?
The four economic activities are consumption, production, exchange, and distribution.
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