Exam 1: The Foundations of Business

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

The U.S.government uses _____ policy regulate the money supply and interest rates.

All the activities needed to operate a business can be divided into the three functional areas of accounting, operations, and marketing.

Perfect competition exists when many consumers are buying standardized products from a few small businesses.

Because they operate in a(n) _____ industry, a fare decrease at American Airlines will likely result in decreases at other carriers.

Previously communist economies, such as those of Eastern Europe, are becoming more mixed as they adopt capitalist characteristics and convert previously government-owned businesses to private ownership.

Because they operate in a(n) _____ industry, a fare decrease at American Airlines will likely result in decreases at other carriers.

A _____ is any activity that provides goods or services to consumers for the purpose of making a profit.

An economic indicator is a statistic that provides valuable information about the economy.

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

Scalpers sell tickets for such events as the World Series and the Super bowl for prices many times the amount printed on the tickets.This situation is an example of which of the following conditions?

The economic system with the highest level of government control is communism.

One way that economists measure the performance of an economy is by looking at a widely used measure of total output know as the _____.

A business is any activity that provides goods or services to consumers for the purpose of making a profit.

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

New Age's customers will typically be willing to buy more of a product when prices are coming down and less when they're on the rise.

A demand curve shows the _____ of a product that will be demanded at different prices.

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

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

Ultimately, the goal of any business is to satisfy the needs of its owner(s).