Show:
Economic Decisions and Systems
Economic Activity
Business in the Global Economy
Social Responsibility of Business & Government
Randomness
100
This is the point where supply and demand are equal.
market price
100
The sale of durable and nondurable goods is called _______.
retail sales
100
This occurs when a country can produce a good or service at a lower cost than other countries.
absolute advantage
100
This occurs when the environment is tainted with the by-products of human actions.
pollution
100
This is one way to measure inflation. It compares prices in one year with prices in some earlier base year.
price index
200
What is a trade-off?
When you give up one thing to have something else.
200
How many people are employed in the United States?
about 145 million
200
What is an exchange rate?
The value of a currency in one country compared with the value in another.
200
This occurs when an action by a company or individual results in an unfair benefit.
conflict of interest
200
_____ refers to the private ownership of resources by individuals, rather than by the government. This is the economic system in the United States.
capitalism
300
Describe the difference between goods and services. Give one example of each.
+A good is something you can see and touch. +A service is an activity that is consumed at the same time it is produced.
300
What is the prime interest rate?
The interest rate banks make available to their best business customers, such as large corporations.
300
List and describe the three types of trade barriers mentioned in your textbook.
+Quota - a limit set on imports or exports +Tariff - a tax is put on certain imported products +Embargo - a complete stop on import or export of a product
300
What is a public utility and how is the government involved with them?
A public utility is an organization that supplies a service or product vital to all people. The government regulates public utilities.
300
Economic resources are also known as ____________.
factors of production
400
List and describe the three different kinds of economic resources.
+Natural resources - raw materials supplied by nature +Human resources - people who produce goods and services +Capital resources - products and money that are used in the production of goods and services
400
What two things are not included in the country's GDP?
intermediate goods and the value of work you do for yourself
400
List and describe the three global market entry modes.
+Licensing - selling the right to use some intangible property (production process, trademark, brand name) for a fee or royalty +Franchising - the right to use a company name or business process in a specific way +Joint ventures - agreement between two or more companies to share a business project
400
What four things are necessary for a contract to be valid?
+consideration +agreement +competent parties +legality
400
Please list and describe the three most common types of taxes.
+Sales tax - on purchases +Icome tax - on income (paycheck) +Property tax - on real estate
500
List and describe the four different types of economic systemsd described in your book.
+Command Economy - the resources are owned and controlled by the government. +Market Economy - resources are owned and controlled by the people of the country. +Traditional Economy - goods and services are produced the way it has always been done. +Mixed Economy - a combination of command and market economies
500
List and describe the four phases of the business cycle.
+Prosperity - low unemployment, lots of goods & services being produced, wages are good, GDP increases +Recession - demand begins to decrease, businesses lower production, unemployment begins to rise, GDP growth slows +Depression - prolonged period of high unemployment, weak consumer sales, business failures +Recovery - unemployment begins to decrease, demand for goods/services increases, GDP begins to rise
500
What are the three key efefcts on a cuontry's level of economic development and describe why each is important.
+Literacy level +Technology +Agricultural dependency
500
List and describe the three methods used to protect intellectual property.
+Patent - gives inventors the sole right to make, use or sell the item +Copyright - protects the creative work of authors, composers, and artists +Trademark - word, letter, or symbol linked with a specific company or product
500
List and describe the three ways that international trade is encouraged.
+Free Trade Zone - prodcuts can be imported duty free and then stored, assembled, or used for manufacturing +Free Trade Agreement - member countries agree to remove duties (taxes) & trade barriers +Common Market - no duties or trade barriers; companies are allowed to invest freely in each members' country and employees can move freely across borders