Chapter 1 Answers – Flashcards
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Which environment is NOT an important dimension of a business organization's external environment?
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Corporate Cultural Environment
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What term denotes a nation's basis for allocating its resources among, it's citizens?
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Economic System
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What is the process for converting government enterprises into individually owned firms known as?
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Privatization
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What is the point at which the supply curve and the demand curve intersect on a graph?
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Equilibrium Price
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What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?
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Market Price
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What occurs when the quantity demanded exceeds the quantity supplied?
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Shortage
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Which of the following does NOT represent a degree of competition in a private enterprise system?
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Socialism
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Which of the following exists when industry or market has only one producer?
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Monopoly
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Which term refers to the pattern of short-term ups ad downs in an economy
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Business Cycle
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Which term refers to the total quantity and quality of goods and services that people living in a economic system can purchase?
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Standard of living
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Which term refers to the total value of all goods and services produced within a given period by a national economy?
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Gross Domestic Product
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What are profits?
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Difference between revenues and expense
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Which economic system emphasizes the private ownership of most factors of production?
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Capitalism
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A new feature on the latest Acme smart phone has made it wildly popular. Which action should Acme take to maximize profits?
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Increase the supply of the smart phone
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A new watch manufacturer would like to determine the market price of a new line of watches. How could the manufacturer most effectively determine the market price?
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Arrange to sell the watches in a number of diverse auctions
