110 How Economics affect business

Question 0

Macroeconomics

Answer 0

The parts of economics study that looks at the operation of a nation’s economy as a whole

Question 1

Economics

Answer 1

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

Question 2

Microeconomics

Answer 2

The part of economics study that looks at the behavior of people and organizations in particular markets

Question 3

Resource development

Answer 3

The study of how to increase resources and to create the conditions that will make better use of those resources.

Question 4

Capitalism

Answer 4

An economic system In which all or most of the factors of production and distribution are privately owned and operated for profit.

Question 5

Basic rights in free market capitalism

Answer 5

• The right to own private property
• Right to own a business and keep all that business’s profits
• Right to freedom of competition
• Right to freed of choice

Question 6

Supply

Answer 6

Quantity of products that manufacturers or owners are willing to sell at different prices at a specific time

Question 7

Demand

Answer 7

Quantity of products that people are willing to buy at different prices at a specific time

Question 8

Market price

Answer 8

The price determined by supply and demand

Question 9

Perfect competition

Answer 9

Degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product

Question 10

monopolistic competition

Answer 10

Degree of competition in which a large number of seller produce very similar products that buyers nevertheless perceive as different.

Question 11

oligopoly

Answer 11

Degree of competition in which just a few sellers dominate the market

Question 12

Monopoly

Answer 12

A degree of competition in which only one seller controls the total supply of a product or service, and sets the price.

Question 13

Socialism

Answer 13

An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people.

Question 14

Brain drain

Answer 14

The loss of the best and brightest people to other countries.

Question 15

Communism

Answer 15

Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows.

Question 16

Command economies

Answer 16

Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow.

Question 17

mixed economies

Answer 17

Economic systems in which some allocation of resources is made by the market and some by the government.

Question 18

Gross domestic product GDP

Answer 18

Total value of goods and services produced in a country in a given year

Question 19

unemployment rate

Answer 19

Number of civilians at least 16 years old who are unemployed and tried to find a job within the prior 4 weeks

Question 20

Inflation

Answer 20

A general rise in the prices of goods and services over time.

Question 21

Disinflation

Answer 21

A situation in which price increases are slowing ( the inflation rate is declining)

Question 22

Deflation

Answer 22

A situation in which prices are declining

Question 23

Stagflation

Answer 23

A situation when the economy is slowing but prices are going up anyhow

Question 24

Consumer price index CPI

Answer 24

Monthly statistics that measure the pace of inflation or deflation.

Question 25

Producer price index PPI

Answer 25

An index that measures prices at the wholesale level.

Question 26

Business cycles

Answer 26

The periodic rises and falls that occur in all economies over time.

Question 27

Recession

Answer 27

Two or more consecutive quarters of decline in the GDP

Question 28

Depression

Answer 28

A severe recession, usually accompanied by deflation

Question 29

fiscal policy

Answer 29

The federal government’s efforts to keep the economy stable by increasing taxes or government spending

Question 30

monetary policy

Answer 30

The management of the money supply and interest rates

Question 31

How federal reserves controls the money supply?
Reserve requirements
Increase

Answer 31

Banks put mire money in the Fed, reducing money supply, less money to lend.

ECONOMY SLOWS

Question 32

How federal reserves controls the money supply?
Reserve requirements
Decrease

Answer 32

Bank put less money in the Fed, increasing money supply, more money to lend.

ECONOMY SPEEDS UP

Question 33

How federal reserves controls the money supply?
open market operations
fed sells bonds

Answer 33

Money flies from the economy to the fed

ECONOMY SLOWS

Question 34

How federal reserves controls the money supply?
Open market operations
Fed buys bonds

Answer 34

money flows into the economy from the fed.

ECONOMY SPEEDS UP

Question 35

How federal reserves controls the money supply?
open market operations
interest rate increases

Answer 35

banks borrow less from the fed, less money to lend

ECONOMY SLOWS

Question 36

How federal reserves controls the money supply?
open market operations
interest rate decreases

Answer 36

Bank burrows mire from the Fed, mire money to lend

economy speeds up

Question 37

falling money value

Answer 37

the amount of goods and services that can be purchased with a unit of money is decreasing or buys less

Question 38

strong economy

Answer 38

the demand for money is high and the value of its money or currency rises