Business
Profit is best described as:
the funds available for business growth, after expenses and salaries are paid.
The _______ _______ is the sum of all government deficits over time.
national debt
Efficiency means
producing items using the least amount of resources.
__________ economies are economic systems where some allocation of resources is made by the market and some by the government.
Mixed
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.
What must companies do to be competitive in today’s market?
offer high-quality products and outstanding service at competitive prices
_______ __________ 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
Management expert Peter Drucker said the most important factor of production in our economy is, and always will be,
knowledge.
_____ _____ 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
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.
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
Adam Smith believed that one’s self-directed gain would eventually create prosperity for many, and called the process the
invisible hand.
The resources used to create wealth are collectively referred to as
the factors of production.
land, labor, capital, entrepreneurship, and knowledge.
__________ has greatly improved living standards around the world.
Globalization
The topics of gross domestic product (GDP), the unemployment rate, and price indexes are examples of which branch of economics?
macroeconomics
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.
______ _______ 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.
_________ 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
_____ is the total value of final goods and services produced in a particular nation in one year.
GDP
Gross domestic product
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
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.
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.
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
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.
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”