Business
Entrepreneur
Economy
Global
Economics
100

Profit is best described as:

the funds available for business growth, after expenses and salaries are paid.

100

The _______ _______ is the sum of all government deficits over time.

national debt

100

Efficiency means

producing items using the least amount of resources.

100

__________ economies are economic systems where some allocation of resources is made by the market and some by the government.

Mixed

100

Socialist systems tend to

1 - encourage innovation.

2 - keep up with countries like the United States in the areas of job and wealth creation.

3 - discourage the best from working as hard as they can.

4 - have relatively low tax rates.

discourage the best from working as hard as they can.

200

What must companies do to be competitive in today’s market?

offer high-quality products and outstanding service at competitive prices

200

_______ __________ refers to those people who are entering the labor force for the first time (e.g., new graduates) or are returning to the labor force after significant time away (e.g., parents who reared children).

Frictional unemployment

200

Management expert Peter Drucker said the most important factor of production in our economy is, and always will be,

knowledge.

200

_____ _____ occurs when innovators, creative thinkers, doctors, lawyers, business owners, and others leave their home country to work in other countries that provide more incentives.

Brain drain

200

Today, high-paying service-sector jobs in the United States can most likely be found in

1 - the automobile industry

2 - accounting

3 - farming

4 - machine tools production

accounting

Today, high-paying jobs in the service sector include health care, accounting, finance, entertainment, telecommunications, architecture, law, software engineering, and more.

300

Since the mid-1980s, the __________ sector has generated the most increases in employment in the United States.

service 


Together, services make up about 85 percent of the value of the American economy

300

Adam Smith believed that one’s self-directed gain would eventually create prosperity for many, and called the process the

invisible hand.

300

The resources used to create wealth are collectively referred to as

the factors of production. 


land, labor, capital, entrepreneurship, and knowledge.

300

__________ has greatly improved living standards around the world.

Globalization

300

The topics of gross domestic product (GDP), the unemployment rate, and price indexes are examples of which branch of economics?

macroeconomics

400

Stockholders, employees, and environmentalists are examples of various business stakeholders whose needs

1- are the same.

2 - center purely on profit.

3 - often conflict.

4 - are rarely addressed.

often conflict.

400

______ _______ refers to the federal government’s efforts to keep the economy stable by increasing or decreasing taxes.

Fiscal policy 

Increasing taxes draws money away from the private sector and puts it in the hands of the government.

400

_________ is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

Economics

400

_____ is the total value of final goods and services produced in a particular nation in one year.

GDP

Gross domestic product

400

Most or all of the factors of production and distribution are privately owned and operated for a profit in this political and economic system.

capitalism

500

To encourage entrepreneurial growth, governments might:

1 - pass laws that enable businesspeople to write contracts that are enforceable in court.

2 - establish a high tax rate to support loans for small businesses.

3 - take over ownership of small businesses when they are first getting started.

4 - reduce the value of their currency to encourage foreign investment.

pass laws that enable businesspeople to write contracts that are enforceable in court.

500

When referring to risk, which statement is reasonable? 

1 -Although risk means taking a chance at losing, your business is likely to always turn a profit.

 2 -Good business strategy encourages less risk, because the least risky ventures usually make more profit.

3 - Sizeable risks can lead to substantial profits, if the business takes calculated risks and captures good opportunities.

4 - Taking risk is never advisable, if a business wants to ensure it maintains profits.

Sizeable risks can lead to substantial profits, if the business takes calculated risks and captures good opportunities.


500

Which circumstance is most likely to reduce one’s standard of living?

1 - an increase in the cost of some goods such as escalating gasoline prices

2 - a decrease in the cost of some goods such as a decrease in housing prices

3 - stable prices and an increase in employee wages

4 - losing your job, but gaining a sizeable inheritance

an increase in the cost of some goods such as escalating gasoline prices

500

The business cycles are (1) an economic boom, (2) recession, (3) depression, and (4) _________.

recovery. 

A recovery occurs when the economy stabilizes and starts to grow.

500

In a free-market economic system, the mechanism of ______ determines how much of a product consumers demand, and how much producers are able to produce.

“price”

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