Exam 1: The Foundations of Business

Good _____ management is particularly important when a company is first formed because new businesses usually need to borrow start-up money.

Because the Peñas are following a traditional business model, they will engage which of the following functional areas?

According to economists, we're entering a period of prosperity when GDP goes down for two consecutive quarters.

Because the cost of starting a business in an oligopoly is usually _____, the number of firms entering it is _____.

_____ allocates the goods and services produced by government-run industries and tries to ensure that the resulting wealth is distributed equally.

The United States federal government influences economic activity by two means, including _____.

This week, Billy Bob's Barbeque had sales of $4,000.Employees were paid $1,000; food costs were $1,500; and rent was $500.Profit for the week was (select one)

Weight Off, a local weight-loss clinic, maintains a clientele of more than 200 busy executives who travel frequently and need specialized diet and exercise regimes.The activities needed to operate this business include all of the following _____.

A typical business cycle can last much longer than three to five years.

One useful indicator of the outlook for future jobs is the number of new _____.

Supply is the quantity of a product that sellers are willing to sell at various prices.

The ups and downs due to the expansion and contraction of the economy constitute the _____.

The inflation rate is the percentage change in a price index.

If, in any given year, the government takes in more money than it spends on goods and services, the result is a budget _____.

When the overall price level of consumer goods goes up, we have _____; when they go down, we have _____.

Leading economic indicators predict the status of the economy over the course of _____.

What is the consumer confidence index?

If the government spends more than it takes in, we have a budget _____.

What do we mean by the equilibrium price?

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