Exam 1: The Foundations of Business

Fast-food chains that have eliminated Styrofoam containers reflect the desire of owners to be good corporate citizens.

As factors of production -- equipment, buildings, vehicles, and cash are considered _____.

External forces play a role in determining whether more people or fewer people eat at fast-food restaurants.

The difference between the revenue that a company brings in from selling goods and services and the cost of generating this revenue is called _____.

Legal monopolies exist in industries requiring huge investments and in which it would be inefficient to duplicate the products that they provide.

The sole regional supplier of Gasanol, a fuel made of gasoline and soy oil, operates in a(n) _____ market.

To counter a recession, the Fed will take _____ measures to increase the money supply and reduce interest rates.

How do economists study the interactions between households and businesses?

A mixed market economy is one that relies on both goods? and service?producing businesses and is largely controlled by the government.

If average weekly manufacturing hours by production workers is on the rise, the economy will probably decline.

The study of the economic choices made by individual consumers or businesses is called _____.

When the United States experiences a slowdown in economic activity and GDP goes down for two consecutive quarters, it is called a(n) _______.

If the quantity demanded for cars is lower than the quantity supplied, we can expect that:

_____ study the interactions between households and businesses and the ways in which the factors of production are combined to produce goods and services.

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

Discuss the government's role in dealing with inflation.

Reported monthly by the Bureau of Labor Statistics, the _____ is the most widely publicized measure of inflation.

The term laissez-faire means that:

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

Product differentiation can be achieved by _____.