Business Basics
This is revenue minus expenses; it’s what businesses aim to earn.
What is profit?
The study of choices under scarcity; it examines how people allocate limited resources.
What is economics?
Core beliefs about what is important (honesty, respect) that guide behavior.
What are values?
The movement toward a more interconnected and interdependent world economy.
Globalization
The broadest measure of a country’s total output of goods and services in a time period.
What is GDP?
One of the four factors of production that includes natural resources like forests and minerals.
What is land?
The model that shows trade-offs between producing two goods and highlights opportunity cost.
What is the Production Possibilities Curve (PPC)?
Rules enforced by the government that are backed by the judicial system.
What are laws?
A tax placed on imported goods to make foreign products more expensive
What is a tariff?
An index that measures how optimistic consumers feel about the economy and their finances.
What is the Consumer Confidence Index?
Selling goods directly to consumers online is called this e‑commerce type.
What is B2C
The type of unemployment that happens when workers switch jobs or locations.
What is frictional unemployment?
This step-by-step approach includes: Stop & Think, Clarify Goal, Consider Options, Evaluate
What is the ethical decision-making process?
The strategy that customizes products to meet local tastes in each country.
What is multidomestic strategy?
When CPI rises rapidly, this economic condition is occurring.
What is inflation?
A business that exists to serve the community rather than to earn profit.
What is a nonprofit organization?
The Fed controls this policy tool by changing short‑term interest rates to influence money supply.
What is monetary policy?
A business practice that goes beyond profit to consider human rights, environment, and community.
What is Corporate Social Responsibility?
When a country can produce a good at a lower opportunity cost than another country.
What is comparative advantage?
The market point where quantity supplied equals quantity demanded.
What is equilibrium (or market equilibrium)?
The practice of moving production to another country to reduce costs or improve quality.
What is offshoring (or offshore outsourcing)?
When the price in a market is higher than equilibrium, creating unsold goods.
What is a surplus?
What are publishing clear, detailed annual reports or disclosing product defects and recall plans examples of?
What is transparency?
If the U.S. dollar appreciates, this happens to the relative price of U.S. exports for foreign buyers.
What is they become more expensive / exports likely fall?
A situation when a country imports more than it exports.
What is a trade deficit?