Intro to Business- Finals – Flashcards
Unlock all answers in this set
Unlock answersquestion
Wants
answer
things you wish you could have. Private wants-new car, computer, etc Public Wants- highways, education
question
Needs
answer
Necessary wants. Food, shelter, and clothing
question
Goods
answer
physically weighed or measure. Statisy your wants and needs for material things that you can see or touch.
question
Services
answer
Tasks that people or machines perform. Satisfy some of your wants for things you cannot see or touch.
question
Business
answer
activity that seeks profit by providing goods and services to others.
question
Resource
answer
anything that people can use to make or obtain what they need or want. Resources limit the number of wants people can statisy.
question
Profit
answer
the amount of money left over after a business has paid for the cost of producing its goods and services.
question
competition
answer
in order to to change with consumers' wants and need the companies thrive on. The contest between businesses to win customers.
question
Consumer
answer
person who selects, purchases, uses, or disposes of goods and services.
question
Scarcity
answer
Shortage of resources
question
factors of production
answer
all of the components necessary to produce a society's goods and services. Ex. wheat that grows, tractor, labor.
question
Natural Resources
answer
raw materials found in nature. Factors of production when used to produce goods. Ex. trees, fish
question
Human resources
answer
Knowledge, efforts, and skills
question
Capital Resources
answer
things used to produce goods and services. Ex. building materials, equipment
question
Renewable
answer
can be reproduced
question
Nonrenewable
answer
ex. oil, coal, iron. Amount of natural resources available to a society has a direct effect on its economy.
question
Collective bargaining
answer
Process labor unions negotiate with management for better pay, hours, and working conditions.
question
Entrepreneurial Resources
answer
recognize the need for new goods and services. They improve on ways to use resources, or create and produce new ones. Meets changing needs and wants of people.
question
Economics
answer
studies how society chooses to use resources to produce and distribute goods and services for people's consumption.
question
Market Economy
answer
economic decisions are made in the market-place according to the laws of supply and demand
question
Demand
answer
amount or quantity of goods and services that consumers are willing to buy at various prices. Higher the price, few customers will buy the item.
question
Supply
answer
The amount of goods and services that producers will provide at various prices.
question
Equilibrium Price
answer
When quantity demanded and the quantity supplied meet
question
profit motive
answer
desire to make money
question
command economy
answer
Planned or managed economy. Central authority makes the key economic decisions.
question
Mixed Economy
answer
Combo of market and command economy. State takes care of peoples needs while the marketplace takes care of peoples wants. (U.S)
question
Productivity
answer
how much it produces
question
Gross Domestic Product (GDP)
answer
Total value of the goods and services produced in a country in a given year.
question
Standard of Living
answer
Amount of goods and services that average citizen can buy.
question
Inflation
answer
general increase in the cost of goods and services
question
Hyperinflation
answer
When everyone is employed so prices are raised so ask for higher raise so raise prices more, etc.
question
Deflation
answer
general decrease in the cost of goods and services. When economy produces more goods than what people want/need.
question
Budget Deficit
answer
The difference in the amount when gov't spends more on programs than it collects in taxes
question
National Debt
answer
total amount of money a government owes
question
Budget Surplus
answer
Situation when a gov't revenue exceeds its expenditures during a one year period in order to reduce debt, cut taxes, etc.
question
Business Cycle
answer
Rise and fall of economic activity
question
Prosperity
answer
peak of economic activity (good)
question
Recession
answer
economic activity slows down. Spending decreases and so does the demand for products
question
Depression
answer
deep recession that affects the entire economy and lasts for several years. High unemployment and low productivity.
question
Recovery
answer
rise in business activity after a recession or depression
question
Resource
answer
A________ is anything that people can use to make or obtain what they need or want.
question
decision-making process
answer
The_______is a procedure for carefully considering alternatives and their consequences before you make a final decision.
question
organize
answer
A business must_______the people and equipment to provide a product
question
product
answer
People within the organization manage the company's resources to produce the _______.
question
human resources
answer
Even if a business has natural resources, capital resources, and entrepreneurial resources, it still could not function without______.
question
Profit
answer
The amount of money left over after a business has paid for the cost of producing its goods and services is called___.
question
The contest between businesses to win customers is called_________.
answer
competition
question
A person who selects, purchases, uses, or disposes of goods and services is called a(n)_______.
answer
Consumer
question
demand
answer
The decision to stop manufacturing products is often because there is a decrease in _________.
question
The headquarters of IBM is a(n)_________resource.
answer
capital
question
Henry Ford, WIlliam Hewlett and David Packard are examples of_________resources.
answer
Entreprenurial
question
_______is the study of how society chooses to use the resources to produce and distribute goods and services for people's consumption.
answer
Economics
question
In a(n)_______economic decisions are made in the marketplace according to the laws of supply and demand.
answer
market economy
question
The______is anywhere money changes hand.
answer
marketplace
question
If producers think the______is high enough to earn a profit, they will produce the goods and services.
answer
price
question
______is the amount of goods and services that consumers are willing to buy at various prices.
answer
Demand
question
_______is the amount of goods and services that producers will provide at various prices.
answer
supply
question
A market economy is often called private enterprise or______.
answer
capitalism
question
A major purpose of an economic system is to produce goods and______.
answer
services
question
People will probably cut back on spending during a(n)______.
answer
recession
question
The harsh economic conditions experienced in the U.S during the 1930's were an example of a(n)________.
answer
Depression
question
Prosperity, recession, depression, and recovery are phases of the ________.
answer
business cycle
question
A measure of how well the people in an economic system live is called the _________.
answer
Standard of living
question
The_____occurs when a recession affects related industries.
answer
ripple effect
question
A rise in business activity after a recession or depression is called a(n)_______.
answer
Recovery
question
One indicator of a growing economy is a decrease in the ________rate, with more people going back to work.
answer
unemployment
question
When an economy becomes too productive and inflation spirals out of control, _________results.
answer
hyperinflation
question
economic system
answer
Determines how resources will be used and provides people with minimum standard of living.
