Chapter 1 flashcards

Question 1

Term

Answer 1

Definition

Question 2

Business

Answer 2

an organization that seeks profit by offering products (goods and services) to satisfy society’s needs

Question 3

Good

Answer 3

a physical, tangible product that we can see and touch

Question 4

Service

Answer 4

an intangible product that we experience or use

Question 5

Quality of life

Answer 5

the general well-being and happiness of people and societies; includes measuring such things as access to healthcare, education, and food

Question 6

Standard of living

Answer 6

the amount of products available, the wealth of the nation, and lifestyle opportunities

Question 7

Environmental scan

Answer 7

the process of gathering information about the external environment to determine how it may potentially impact the business’s operations

Question 8

Economy

Answer 8

the way in which people deal with the creation and distribution of wealth

Question 9

Economic system

Answer 9

a combination of policies, laws, and choices made by governments

Question 10

Factors of production

Answer 10

the resources used to create goods and services, including natural resources, capital, labour, entrepreneurship, and knowledge

Question 11

Market economy

Answer 11

an economic system based on competition in the marketplace in which individuals own and operate the majority of businesses that provide goods and services

Question 12

Command economy

Answer 12

an economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production

Question 13

Mixed economy

Answer 13

an economic system where most land and business are privately owned but with various levels of government involvement

Question 14

Socialism

Answer 14

an economic system in which infrastructure is owned and controlled by the government

Question 15

Competition

Answer 15

rivalry among businesses for sales to potential customers

Question 16

Perfect (or pure) competition

Answer 16

the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product

Question 17

Supply

Answer 17

the quantity of a product that producers are willing to sell at each of various prices

Question 18

Equilibrium price

Answer 18

the price at which the quantity demanded is exactly equal to the quantity supplied

Question 19

Monopolistic competition

Answer 19

a market situation in which there are many buyers along with a relatively large number of sellers that differentiate their products from the products of competitors

Question 20

Demand

Answer 20

the quantity of a product that buyers are willing to purchase at each of various prices

Question 21

Product differentiation

Answer 21

the process of developing and promoting differences between one’s products and all competitive products

Question 22

Game theory

Answer 22

used to model the interaction between two or more businesses to determine what will happen if one or more companies take specific actions with regard to changing prices or introducing new products or services

Question 23

Oligopoly

Answer 23

a market (or industry) in which there are few sellers

Question 24

Monopoly

Answer 24

a market (or industry) with only one seller and barriers to keep other companies from entering the industry

Question 25

Recession

Answer 25

two or more consecutive three-month periods of decline in a country's GDP

Question 26

Unemployment rate

Answer 26

the percentage of a country's labour force unemployed at any time; calculated as the number of unemployed divided by the number of people currently in the labour force

Question 27

Inflation

Answer 27

an economic statistic that tracks the increase in prices of goods and services over a period of time

Question 28

Gross domestic product (GDP)

Answer 28

the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period

Question 29

Consumer price index (CPI)

Answer 29

a monthly index that measures the changes in the prices of a fixed basket of goods and services purchased by a typical consumer in an urban area

Question 30

Deflation

Answer 30

an economics statistic that tracks the decrease in prices of goods and services over a period of time

Question 31

what are the four benefits of Business to society?

Answer 31

Offers valuable goods and services Providing Employment Contributing to our standard of living Imporving quality of life. Driving innovation and creativity

Question 32

what are the five factors that impact businesses and consumers?

Answer 32

Political Economic and comp Social Technological International

Question 33

what are the economic factors?

Answer 33

Health of the Economy Economic system Factors of production

Question 34

Name the four times of Competition and list the amount of businesses or suppliers

Answer 34

Perfect - Many Monopolistic - Many Oligopoly - Few Monoply - One

Question 35

what are the five very important concepts for perfect competition to exist? (perfect _)

Answer 35

BIOME Buyers and sellers have no market impact identical product open info to buyers and sellers market of 1 product entry is not restricted

Question 36

what is the primary focus of a company in each type of competition to make profit

Answer 36

perf. - Minimizing production costs. monopolistic - product differentiation oligopoly - game theory monopoly - price maker

Question 37

How to measure economic performance?

Question 38

what are the four types of resources Critical for company success ?

Answer 38

material, human, financial, and informational

Question 39

what are the benefits of business in a society

Answer 39

offering valuable goods and services providing employment contributing to the standard of living Improving quality of life Driving innovation and creativity

Question 40

What are the concerns about the impact of business on society?

Answer 40

Health and safety risks (production environment/workers... no enviroment) Enviromental damage Community Impacts

Question 41

What are the five factors of the bsuiness enviroment?

Answer 41

Political (tax agents, regulators, providers of essential services, purchasers, and competitors.) Economic and Competitive (Size of economy,size of competition) Social (Change in demographics) Technological (innovations in productions and distribution, communication, and advertising) International (*kinda like economic and competitive, but over the globe)

Question 42

What are the five factors of the bsuiness enviroment?

Answer 42

Political (tax agents, regulators, providers of essential services, purchasers, and competitors.) Economic and Competitive (Size of economy,size of competition) Social (Change in demographics) Technological (innovations in productions and distribution, communication, and advertising) International (*kinda like economic and competitive, but over the globe)

Question 43

what are the five important concepts for perfect competition?

Answer 43

1. The market is a single product 2. No entry restrictions 3. Homogeneous product 4.Open market knowledge 5. market is not impacted by one stakeholder

Question 44

Name an example of monopolistic competition...

Answer 44

Did you do it?

Question 45

What is the key strategic consideration in a monopolistic market?

Answer 45

Product differentiation.

Question 46

what is the key strategic consideration of a oligopoly?

Answer 46

Game theory

Question 47

How can the health of the economy affect individuals?

Answer 47

The financing for education ability to get a hob The amount of interest payable

Question 48

How can the health of the economy affect Business's ?

Answer 48

Hiring employees investing in assets Launching new products or services (or new markets)

Question 49

How can the health of the economy affect a government?

Answer 49

Taxes and budgets fiscal policy monetary policy

Question 50

what has a larger timeline a recession or a depression

Answer 50

depression > recession

Question 51

What is inflation ussually measured by?

Answer 51

the consumer price index

Question 52

What is the difference between monetary policy and fiscal policy?

Answer 52

Monetary policy manages the money supply (ex. printing), while fiscal manages spending and income.

Question 53

What are the four different parts of a business cycle?

Answer 53

Expansion, peak, contraction, and trough