Download Principles of Business

Principles of Business
Obj. 1.0 Review
1. Natural resources, such as oil, give a country which type of advantage?
Absolute
2. High unemployment and inflation along with low productivity are indicators of which phase of the business
cycle?
Depression
3. A decrease in the general price level of goods and services is known as what?
Deflation
4. What is the basic economic problem?
Limited resources/unlimited wants and needs
5. What is the primary incentive to become an entrepreneur?
Profit
6. The total value of goods and services produced in a given year for a country is called:
Gross Domestic Product (GDP)
7. What are the six steps of the decision making process?
Define problem, identify alternatives, lists advantages/disadvantages, choose, act on choice, evaluate choice
8. What are the three types of unemployment that do not have a negative effect on the economy?
Seasonal, temporary, and industry changes
9. A measure of how well a person in a country lives is known as:
Standard of living
10. The point where supply and demand meet is known as what?
Equilibrium point
11. What are the two types of natural resources?
Renewable and nonrenewable
12. Inflation can be measured using what indicator?
Consumer Price Index (CPI)
13. Which economic system combines government control of the major sources of industry along with some
levels of private ownership?
Socialism
14. What are the 4 main areas of the Gross Domestic Product (GDP)?
Individual, business and government spending and imports/exports
15. What are the 4 principles of the US economic system?
Private property, freedom of choice, profit, and competition
16. What are two measurements of consumer spending?
Personal income and retail sales
17. The need to modify packaging and labeling is a disadvantage for what?
Exporting
18. A recession in one industry affects related industries is known as what?
Ripple effect
19. The value of currency in one country when compared to the value in another.
Exchange rate
20. North Korea is an example of a country that uses what type of economic system?
Communism
21. Innovation and expansion are indicators of which phase of the business cycle?
Recovery
22. Which type of interest rate is offered by the Federal Reserve to financial institutions for loans?
Discount rate
23. What are the four main factors to the international business environment?
Geography, cultural influences, economic development, and political and legal concerns
24. This long lasting recession occurred from 1929-1933.
Great Depression
25. The beliefs and principles you consider important, correct, and desirable are called:
Values
26. The quantity of goods and services that consumers are willing and able to buy at a certain price is known as
what?
Demand
27. What is one of the benefits of worker productivity?
Lower costs, increased profits, increased wages, more competitive
28. What are two of the causes of inflation?
Economy is too productive and printing too much money
29. Allowing a business the rights to use another company’s name or processes in a certain way is known as:
Franchising
30. A tribe in the Amazon is an example of this type of economic system.
Traditionalism
31. What is the difference between a budget deficit and the national debt?
Yearly vs. cumulative
32. The European Union (EU) is an example what?
Common market
33. The difference between imports and exports for a country is known as what?
Balance of trade