Economic Indicators
Figures used to measure economic performance are called economic
Indicators
What are the 3 types of Business ownerships:
Sole Proprietorship, Partnership, Corporation
Economic activity slows down during a ____.
recession
What is the economic term for goods essential for survival, such as water and shelter?
needs
What is the economic term for the increase in prices over time, which reduces purchasing power?
inflation
What does Gross Domestic Product (GDP) measure?
The total monetary market value of all finished goods and services produced within a country's borders
What are the tax implications for sole proprietorships, partnerships, and corporations?
Sole proprietorships are taxed once
Partnerships are also taxed once
Corporations can be taxed twice
A peak of economic activity is called ____.
prosperity
What do we call goods or services that people desire but can live without, such as luxury cars or designer clothes?
wants
Which company is famous for its "Just Do It" slogan and is a leading brand in athletic footwear and apparel?
Nike
What does the unemployment rate measure?
The number of people who are able and willing to work but cannot find work during a given period
What are the key advantages and disadvantages of a sole proprietorship compared to other business ownership types?
A sole proprietorship offers full control and simple setup, but it also exposes the owner to unlimited personal liability.
What characterizes a depression in the context of the business cycle?
An extreme recession lasting three or more years
How does scarcity affect the way individuals prioritize their needs and wants?
forced people to make choices based on limited resources
Which automotive manufacturer is known for its electric vehicles and was founded by Elon Musk?
Tesla
What does increasing Real GDP typically indicate about an economy?
Economic Strength
In terms of decision-making and control, how do partnerships and corporations differ from a sole proprietorship?
In a sole proprietorship, the owner makes all decisions, while in partnerships, decisions are shared, and in corporations, they are made by a board of directors.
During which phase do businesses typically experience the highest profits and success?
Peak
In economics, what do we call the decision to satisfy wants before needs, potentially leading to future financial issues?
opportunity cost or poor resource allocation
What is the name of the e-commerce giant founded by Jeff Bezos in 1994, originally as an online bookstore?
Amazon
For what period do economists typically calculate GDP?
Annulay
How does personal liability differ between sole proprietorships, partnerships, and corporations?
In a sole proprietorship, the owner has unlimited personal liability; in a partnership, partners share liability for the business’s debts; while in a corporation, owners (shareholders) have limited liability, meaning their personal assets are protected from business debts.
When a downturn in one industry causes a downturn in another industry, it is called a ____ effect.
Ripple Effect
What is the economic term for the study of how individuals and societies allocate scarce resources to meet their needs and wants?
Economics
What company, originally founded as a software development firm in 1975, transformed into one of the largest technology companies in the world and is known for its Windows operating system and Office productivity suite?
microsoft