Exam 1: The Foundations of Business

_____ occurs when the average of the prices for goods and services either does not change or changes very little.

A budget deficit occurs when the government spends more than it takes in.

When they assess the success of plans and decisions and take corrective action when it's needed,managers are _______.

Because the government limits them by law,there are few _____ in the United States.

In an environment of perfect competition,external influences ensure that the market will arrive at an equilibrium point at which both buyers and sellers are satisfied.

Under a system characterized by _____ competition,there are many consumers buying a standardized product from numerous small businesses.

When a fast-food chain responds to environmental concerns by eliminating Styrofoam containers,it shows a desire to be a ______.

A classic example of a company with a patent-based legal monopoly is Polaroid,which for years held exclusive ownership of instant-film technology.

The three goals shared by all of the world's economies are growth,high employment,and high wages.

When the Fed believes that deflation is a problem,it will use contractionary policy to decrease the money supply and raise interest rates.

A good way to accumulate profits is to supply something that can be sold for much more than it costs to produce.

If the Fed believes that inflation is a problem,it will (select one):

_____ is the study of the production,distribution and consumption of goods and services.

A recession is generally followed by a _____ in which the economy starts growing again.

Ultimately,the goal of any business is to satisfy the needs of its _____.

Businesses are more willing to sell a product when the price _____ and less willing to sell it when prices _____.

As a producer and seller of athletic shoes,apparel,and equipment,Nike sells _____.

The free market system was espoused by _____ in his book The Wealth of Nations.

Under a socialist economic system,the government owns all or most businesses.

_____ involve(s)the design and management of the processes that transform resources into goods or services.