EC-002
Gross profit shows business owners the difference between what they’ve
Gross profit shows business owners the difference between what they’ve
What is the amount of money for which an item sells in the competitive market place?
price
The quantity of a good or service that consumers are ready to buy at a given price at a particular time is known as
demand
Social responsibility should be part of the objectives of __________ businesses.
nonprofit
government
Service
Resources that enable businesses to operate are also known as
imputs
Business owners are usually interested in net profit because they want to know what they can
keep
How much are consumers willing to pay for a product depends partly on the consumer's opinion of the product's.
value
Three factors necessary for demand to exist are: desire for a product, buying power to pay for the product and
Willingness to exchange buying power.
What do service businesses sell?
intangible activies
Natural resources, human resources, and _________ are often referred to as factors of production.
capital goods
Besides motivation, what does profit provide business owners in particular?
Satisfaction
Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks?
relative price
The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is known as
supply
Emilia works for a company that constructs houses and business facilities.Which type of producer does she work for?
a builder
This is a computer, What kind of resource is this an example of?
capital
The amount of money paid for raw materials and products sold is called
cost of goods.
Which of the following is an example of a change in the relative price ratio with the original price of red apples is 60 cents per pound and the original price of green apples is 80 cents per pound?
Red apples @ 90 cents per pound; green apples @ 80 cents per pound
If the demand for a good or service is constant regardless of its price, __________ demand exists.
inelastic
A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating __
social responsibitliy
Which of the following economic resources is responsible for combining the other resources to produce goods and services?
human resources
Which of the following is an external situation in which people are out of work and can’t afford “extra” purchases:
Bad economy
In order to be able to charge competitive prices in our economy, producers must combine resources in technologies to produce
items at the lowest cost possible
What factor(s) can affect supply of certain products? (Select up to 3)
Technology
Natural Disasters
Government regulations
One way in which many businesses demonstrate their social responsibility toward employees is by providing them with
a safe secure working environment
Capital goods reflect the state of ________ that exists in society. For example, Industrialized societies would use the most up-to-date and modernized capital goods
technology