intro to business final exam – ch 1-3 test review
TRANSCRIPT
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Intro to BusinessFinal Exam – Ch 1-3
Test Review
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Red – 1 point; Black – 2 points; Green – 3 points
Team that earns most points receives 1 extra credit point towards test.
Points based on colors:
•Red – 1 point•Black – 2 points•Green – 3 points
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Red – 1 point; Black – 2 points; Green – 3 points
Ch 1 Ch1 Ch 2 Ch 2 Ch 31 7 13 19 252 8 14 20 263 9 15 21 274 10 16 22 285 11 17 23 296 12 18 24 30
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Red – 1 point; Black – 2 points; Green – 3 points
1. A person who buys goods and services is called a
_________
• consumer
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Red – 1 point; Black – 2 points; Green – 3 points
2. List the 4 types of economic systems.
• Command economy• Market economy• Traditional economy• Mixed economy
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Red – 1 point; Black – 2 points; Green – 3 points
3. What is the difference between a need and a want?
• A need is something necessary for survival, a want is something that brings pleasure.
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Red – 1 point; Black – 2 points; Green – 3 points
4. Who controls the resources in a command economy? In a
market economy?
• Government• Individuals
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Red – 1 point; Black – 2 points; Green – 3 points
5. Name 2 capital resources.
• Money, machinery, building, supplies, computers
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Red – 1 point; Black – 2 points; Green – 3 points
6. Wants and needs are ______ but economic resources are
______, which leads to ______.
• unlimited, limited, scarcity
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Red – 1 point; Black – 2 points; Green – 3 points
7. What is the equilibrium price?
• When supply equals demand
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Red – 1 point; Black – 2 points; Green – 3 points
8. As price increases, quantity supplied ______ and quantity
demanded _______.
• increases, decreases
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Red – 1 point; Black – 2 points; Green – 3 points
9. Name the 3 types of economic resources.
• Natural • Human• Capital
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Red – 1 point; Black – 2 points; Green – 3 points
10. A ________ is when you give up something for
something else.
• tradeoff
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Red – 1 point; Black – 2 points; Green – 3 points
11. A ______ determines what products and services will be
available for sale.
• producer
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Red – 1 point; Black – 2 points; Green – 3 points
12. Define goods and services.
• Goods - Products you can purchase; tangible
• Services - Activities that are consumed at the same time they are produced; intangible
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Red – 1 point; Black – 2 points; Green – 3 points
13. Deflation may occur in what phase of the
business cycle?
• Recession or depression
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Red – 1 point; Black – 2 points; Green – 3 points
14. How do you calculate GDP per capita?
• Total GDP / Total population
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Red – 1 point; Black – 2 points; Green – 3 points
15. People above the age of ____ who are actively seeking
work make up the _____ ______.
• 16• Labor force
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Red – 1 point; Black – 2 points; Green – 3 points
16. What are the 4 components of GDP?
• Consumer spending• Business spending• Government spending• Net Exports (Exports – Imports)
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Red – 1 point; Black – 2 points; Green – 3 points
17. What does GDP stand for?
• Gross Domestic Product
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Red – 1 point; Black – 2 points; Green – 3 points
18. In the business cycle, what phase comes after a recession?
• Depression or Recovery
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Red – 1 point; Black – 2 points; Green – 3 points
19. What are the 4 phases of the business cycle in the order
in which they occur?
• Prosperity, Recession, Depression, Recovery
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Red – 1 point; Black – 2 points; Green – 3 points
20. High interest rates = ______ Low interest rates = ______
• Saving• Spending/borrowing
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Red – 1 point; Black – 2 points; Green – 3 points
21. Only ______ goods are counted in GDP.
• final
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Red – 1 point; Black – 2 points; Green – 3 points
22. What number measures the rate of inflation?
• Consumer Price Index (CPI)
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23. ________ is the general rise in the level of prices.
• Inflation
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Red – 1 point; Black – 2 points; Green – 3 points
24. Name 2 sources businesses can use to raise money for
capital projects.
• Personal saving, stocks, bonds, loans
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Red – 1 point; Black – 2 points; Green – 3 points
25. Making, buying and selling goods and services within a country is called ________
business.
• domestic
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26. Exports – imports = _______
• Balance of trade
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Red – 1 point; Black – 2 points; Green – 3 points
27. What are exports? What are imports?
• Exports - Goods and services sold to other countries.
• Imports - Items bought from other countries.
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28. Name the 3 types of trade barriers that a government
might use.
• Tariff• Quota• Embargo
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29. What is a joint venture?
• An agreement between 2 or more companies to share a business project.
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30. How does a country achieve a trade surplus?
• Export more than they import