Final Exam Review

Question 1

economics

Answer 1

the study of how a society uses scarce resources to produce and distribute goods and services

Question 2

macroeconomics

Answer 2

the subarea of economics that focuses on the economy as a whole looking at aggregate data from large groups of people, companies, or products

Question 3

micro economics

Answer 3

economics that focuses on individual parts of the economy such as households and businesses

Question 4

factors of production

Answer 4

Natural resources, Labour, Capital, Entrepreneurship, knowledge

Question 5

demand

Answer 5

The quantity of a good or service that people are willing to buy at various prices

Question 6

demand curve

Answer 6

a graph showing the quantity of a good or service that people are willing to buy a t various prices

Question 7

supply

Answer 7

the quantity of a good or service thst businesses will make available at various prices

Question 8

supply curve

Answer 8

a graph showing the quantity of a good or service that a business will make available at various prices

Question 9

equilibrium

Answer 9

the point at which quantity demanded equals quantity supplied

Question 10

What is GDP and define it

Answer 10

gross domestic product - the total market value of all final goods and services produced within a nations borders

Question 11

What is GNP and define it

Answer 11

gross national product - the total market value of all final goods and services produced by a country regardless of where the factories are

Question 12

Define business cycle

Answer 12

changes in the level of economic activity

Question 13

What are the different types of unemployment and define them

Answer 13

Frictional Unemployment- Quite Job and didn’t find another yet

Structural Unemployment- Industries short of workers

Cyclical Unemployment- varies based on the
economy’s cycle

Seasonal Unemployment- Construction or other industries based on seasons

Question 14

measuring employment/ unemployment

Answer 14

to determine how close we are to full employment

Question 15

define the different type of inflation

Answer 15

demand- pull inflation – inflation that occurs when demand is greater than supply

cost-push – when production costs increase ultimately raising prices of goods and services

Question 16

define consumer price index

Answer 16

an index of the prices of a shopping basket of goods and services purchased by consumers

Question 17

define producer price index

Answer 17

an index of the prices paid by the producers and wholesalers for various commodities

Question 18

bank of Canada

Answer 18

Canadas central bank who objective is the economic and financial well-being of Canada by creating a sound balance of growth, employment, and price stability

Question 19

Define ethics

Answer 19

a set of moral standards for judging whether something is wright or wrong

Question 20

define demography

Answer 20

the tudy of people vital statistics. ex. age, gender, race and ethnicity, location

Question 21

define stakeholder

Answer 21

individuals, groups, or organizations to whom a business has a responsibility ex. employees, customers, suppliers, investors and the general public

Question 22

define corporate philanthropy

Answer 22

the practice of charitable giving by corporations

ex. donating equipment, cash, supporting volunteer efforts

Question 23

What does CIO stand for and define it

Answer 23

Chief information officer – an executive responsible for managing all information resources and processes in a organization

Question 24

define knowledge worker

Answer 24

a worker who develops or uses knowledge, contributing to and benefitting from information used in preforming various tasks

Question 25

define multinational corporation

Answer 25

corporations that move resources, goods, services and skills across national borders without regard to the country where the headquarters is

Question 26

define imports and exports

Answer 26

imports – goods and services brought from other countries

exports – goods and services produced in one country and sold in another

Question 27

define balance of trade

Answer 27

the difference between the value of the countrys exports and the value of its imports

Question 28

define trade surplus

Answer 28

when a country exports more than it imports

Question 29

define trade deficit

Answer 29

when a country imports more than it exports

Question 30

define balance of payments

Answer 30

a summary of the countries international transactions showing the difference between total payments and total receipts

Question 31

define exchange rate

Answer 31

the price of one countries currency in terms of another’s countries

Question 32

define free trade and give examples

Answer 32

the policy of permitting the people of a country to buy and sell where they want without restrictions

Question 33

what is protectionism and the different forms of it

Answer 33

the policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas

Question 34

what are the types of trade advantages

Answer 34

NAFTA
Mercosur
European Union

Question 35

what are the differnet types of entrepreneurs and their characteristics

Answer 35

classic entrepreneurs
multipreneurs
intrapreneurs

Question 36

what are the different types of entrepreneurs and their characteristics

Answer 36

classic entrepreneurs – accept the risks that come with starting their own companies based on innovative ideas

multipreneurs – thrive on the challenge of building a business and watching it grow. they are entrepreneurs who start a series of business

intrapreneurs – entrepreneurs who don’t own there own company but apply there creativity, vision, and risk taking within a large corporation.

Question 37

define business plan

Answer 37

a formal written statement that describes in detail the idea for a new business and how it will be carried out, and include a general description of the company, the qualifications of the owners, a description of the product or service, an analysis of the market, and a financial plan.

Question 38

define debt and equity and what are the sources of it

Answer 38

debt – a form og business financing consisting of borrowed funds that must be repaid with interest over a stated period

equity – a form of business financing consisting of funds raised through the sale of shares in a business

Question 39

define angel investors

Answer 39

individual investors or groups of experienced investors who provide funding for start-up businesses

Question 40

define venture capital

Answer 40

financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money

Question 41

what are the different types of business structures

Answer 41

sole proprietorship
corporation
partnership

Question 42

define shareholders

Answer 42

the owners of a corporation who hold shares of stock that provide certain rights

Question 43

Define board of directors

Answer 43

a group of people elected by the shareholders to handle the overall management of a corporation, such as setting major corporate goals and policies, hiring corporate officers, and overseeing the companies operations and finances

Question 44

what are the specialized forms of business organizations

Answer 44

co operatives
joint venture 
leveraged buyout 
merger/ acquisition motives
franchising

Question 45

franchising

Answer 45

a form of business organization based on a business arrangement between a franchisor, which supplies the product concept, and the franchisee, which sells the good or service of the franchisor in a geographic region