Mgmt 1 HW1 – Flashcards
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(T/F) Businesses seek to earn a profit by providing goods and services to others.
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true
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(T/F) Profits of a business include the salaries paid to its employees.
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false
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(T/F) Health care availability, a clean environment, and good schools all contribute to a high quality of life.
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true
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(T/F) The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups.
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false
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(T/F) A charitable organization, such as the American Red Cross or Salvation Army, is classified as a for-profit organization.
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false
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(T/F) Honesty, integrity, and high ethical standards are essential to a capitalist economic system like the one that operates in the United States.
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true
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(T/F) To remain competitive in today's market, firms must produce a quality product and offer outstanding service at a reasonable price.
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true
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An activity which seeks to earn a profit by providing a good or service is known as a(n): industry. corporation. business. service.
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business
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__________ is the amount a business earns after deducting what it spends for salaries and other expenses. Profit Revenue Interest Dividends
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Profit
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A(n) ____________ is a person who assumes the risk of starting a business. manager entrepreneur private investor stakeholder
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entrepreneur
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Public schools, charities and government agencies generally __________. are incorporated do not seek to earn a profit provide goods rather than services do not have any stakeholders
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do not seek to earn a profit
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The resources that contribute to the creation of wealth are known as _______. production coefficients factors of production production technologies production aggregates
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factors of production
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Taxes and government regulations are part of the ________________ environment of business. economic and legal competitive social technological
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economic and legal
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Employers provide tools and technology for their employees in order to: increase the cost of production and profitability. improve their efficiency and productivity. reduce corruption in business and eliminate scandals. encourage the private ownership of businesses.
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improve their efficiency and productivity
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Businesses that produce and sell tangible products such as steel and machines are part of the: manufacturing industry. knowledge-based industry. service industry. production sector.
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manufacturing industry
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(T/F) Economists study how people use resources to produce and distribute goods and services for consumption among competing groups and individuals.
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true
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(T/F) Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.
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true
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(T/F) According to Adam Smith, the "invisible hand" refers to the government's effort to always keep a check on the wealth creation of individuals, so that no one business would control a market for a particular good or service.
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false
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(T/F) Thomas Malthus believed that people in most countries would never be able to achieve high standards of living unless the problems of overpopulation were addressed.
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true
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(T/F) Under the basic principle of supply, as the price goes down, manufacturers and suppliers of a product tend to supply less of the product to the market.
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true
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(T/F) Socialists believe that the primary economic function of the government is to promote rapid economic growth.
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false
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(T/F) Most countries throughout the world can be classified as either purely capitalist or purely socialist.
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false
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(T/F) One of the major ways the Fed influences economic conditions is through its control of interest rates.
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true
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______ is considered by some to be the father of modern economics. John Maynard Keynes Adam Smith Thomas Carlyle Thomas Malthus
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Adam Smith
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________ is the name of a free-market economic system in which most of the factors of production and distribution - such as land, factories, railroads, and stores - are owned by individuals. Socialism Capitalism Communism Marginalism
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Capitalism
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A major benefit of socialism is the: Ability to stimulate rapid economic growth. Ability to keep taxes low. Emphasis on social equality. Emphasis on private enterprise instead of public ownership.
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emphasis on social equality
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Today, the economic systems of most nations could most accurately be classified as: Pure capitalism. Pure socialism. Command economies. Mixed economies.
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mixed economies
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The total value of final goods and services produced within a nation's borders in a given year is known as that nation's: aggregate production quota aggregate domestic output index of aggregate economic output gross domestic product
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gross domestic product
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Recently the U.S. national debt was over: $14 trillion. $25 trillion. $560 billion. $380 billion.
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$14 trillion
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During the recent economic crisis, Presidents George W. Bush and Barack Obama increased government spending by $2 trillion, in order to revive the ailing economy. Their strategy followed the economic theory known as: Malfusian Bernankeism Keynesian Greenspanian
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Keynesian
