comm 101 - chapter 1

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What is a business?

A place where products are sold

An organization that provides goods or services to satisfy society's needs (correct)

A location for entertainment

A government entity

What is a good?

A physical, tangible product that we can see and touch (correct)

An intangible service provided to consumers

A law that regulates economic activity

A financial investment opportunity

What is a service?

A physical product sold to consumers.

An intangible product that we experience or use (correct)

A sum of money paid for goods.

A type of investment in the stock market.

The standard of living is defined as which of the following?

The amount of products available, the wealth of the nation, and lifestyle opportunities Signup and view all the answers

Quality of life is defined as which of the following?

the general level of human well-being and happiness of people and societies Signup and view all the answers

Revenue is defined as which of the following?

The total income generated from the sale of goods or services. Signup and view all the answers

Profit is defined as what?

Total revenue minus total costs Signup and view all the answers

Costs are defined as:

The expenses incurred in the production + selling of goods or services Signup and view all the answers

An environmental scan in business is defined as what?

the process of gathering information about the external environment to determine how it may potentially impact business operations Signup and view all the answers

What is the primary purpose of a patent?

Give an inventor the exclusive right to manufacture, use and sell an invention for 20 years Signup and view all the answers

An example of a patent is:

A new type of light bulb Signup and view all the answers

What is the definition of a trademark?

A symbol, design or word that differentiates a company's goods or services Signup and view all the answers

What is the definition of an economy?

the way in which people deal with the creation and distribution of wealth Signup and view all the answers

Economics is the study of which of the following?

how society uses resources to produce and distribute goods and services Signup and view all the answers

A country's economic system is defined as what?

A combination of policies, laws, and choices made by its governments that determine who owns and controls the factors of production Signup and view all the answers

Macroeconomics is defined as:

The study of the overall economy and large-scale economic factors Signup and view all the answers

Microeconomics is defined as what type of study?

The study of individual economic units and their decision-making. Signup and view all the answers

Which of the following is an example of macroeconomics?

Analysis of national unemployment rates Signup and view all the answers

Which of the following is an example of microeconomics?

A family's budgeting decisions Signup and view all the answers

A market economy/capitalism is defined as:

an economic system in which individuals own and operate the majority of businesses that provide goods and services Signup and view all the answers

A command economy is defined as?

An economic system in which the government decides what goods and services will be produced, how they will be produced, and for whom they will be produced. Signup and view all the answers

A socialist economy is characterized by which of the following?

Major infrastructure is owned and controlled by the government, while smaller businesses are controlled by individuals. Signup and view all the answers

A mixed economy is:

An economic system where most land and business are privately owned, but with various levels of government involvement Signup and view all the answers

Competition is defined as what?

Rivalry among businesses for sales to potential customers Signup and view all the answers

Which of the following are characteristics of perfect (pure) competition? (Select all that apply)

Low barriers to enter/exit Signup and view all the answers

Which of the following are characteristics of monopolistic competition? (Select all that apply)

Many firms Signup and view all the answers

Product differentiation is defined as:

The process of developing and promoting differences between one's products and all competitive products Signup and view all the answers

Which of the following are characteristics of oligopoly competition? (Select all that apply)

High barriers to entry Signup and view all the answers

monopoly degree of competition characteristics

no entry of new firms Signup and view all the answers

What is the equilibrium price?

The price at which the quantity demanded is exactly equal to the quantity supplied Signup and view all the answers

Supply is defined as:

The quantity of a product that producers are willing to sell at each of various prices Signup and view all the answers

Demand is defined as:

The quantity of a product that buyers are willing to purchase at each of various prices Signup and view all the answers

Gross domestic product (GDP) is defined as what?

The total value of all goods and services produced in a country in a year Signup and view all the answers

What is the unemployment rate?

The percentage of a countries labor force that is unemployed Signup and view all the answers

Inflation is defined as:

tracks the increase in general level of prices for goods and services over a period of time Signup and view all the answers

What is deflation?

A decrease in the general price level of goods and services. Signup and view all the answers

What is the Consumer Price Index (CPI)?

Monthly index that measures the changes in the prices of a fixed basket of goods typically purchased by typical consumers Signup and view all the answers

Demand-pull inflation occurs when:

the demand for goods and services is greater than the supply Signup and view all the answers

What is cost-push inflation?

Triggered by increases in production costs Signup and view all the answers