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Questions and Answers
Which of the following represents a type of business?
Which of the following represents a type of business?
- Green Tree Landscaping Services
- National Parks Service
- Jack & Jill, a specialty clothing store for young children (correct)
- Health Insurance Corporation
What does a low standard of living in Honduras indicate?
What does a low standard of living in Honduras indicate?
- It has a surplus of goods for export
- It has a thriving economy with high employment
- Its population has access to luxury items
- Its citizens cannot afford to buy much (correct)
What term is used to describe inputs like natural resources and labor?
What term is used to describe inputs like natural resources and labor?
- Factors of production (correct)
- Essential elements
- Building blocks
- Creative factors
What economic system emphasizes individual ownership of property?
What economic system emphasizes individual ownership of property?
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Which characteristic is fundamental to capitalism?
Which characteristic is fundamental to capitalism?
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Inflation and interest rates are most closely associated with which aspect of the external business environment?
Inflation and interest rates are most closely associated with which aspect of the external business environment?
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What is the result of the Federal Reserve implementing a contractionary policy?
What is the result of the Federal Reserve implementing a contractionary policy?
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Which statement regarding demand and supply curves is true?
Which statement regarding demand and supply curves is true?
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When a single firm accounts for 100 percent of industry sales, it is known as what kind of market structure?
When a single firm accounts for 100 percent of industry sales, it is known as what kind of market structure?
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In the music industry, if four companies control 90 percent of the market, what type of market structure does this exemplify?
In the music industry, if four companies control 90 percent of the market, what type of market structure does this exemplify?
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What typically occurs to supply when taxes on a product are decreased?
What typically occurs to supply when taxes on a product are decreased?
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Which of the following is indicative of a low standard of living in a country?
Which of the following is indicative of a low standard of living in a country?
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What term describes the combination of natural resources, labor, capital, and entrepreneurship used to produce goods?
What term describes the combination of natural resources, labor, capital, and entrepreneurship used to produce goods?
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What is a key characteristic of capitalism?
What is a key characteristic of capitalism?
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Which economic system is primarily characterized by individual property ownership?
Which economic system is primarily characterized by individual property ownership?
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Study Notes
Business Examples
- Jack & Jill, a specialty store for children's clothing, is an example of a business.
- Wal-Mart operates as a large retail corporation.
- Ford Motor Company is a manufacturer of automobiles.
- Lawson & Tyler law offices represent a service-based business.
- All listed entities collectively serve as valid examples of businesses.
Standard of Living in Honduras
- Low standard of living indicates that citizens struggle to afford basic goods.
- The country does not have a positive balance of trade.
- Wages in Honduras are typically lower than those in the U.S.
- Economic conditions may deter risk-averse entrepreneurs.
Factors of Production
- Inputs necessary for production include natural resources, labor, capital, and entrepreneurship.
- These inputs are collectively referred to as factors of production.
Capitalism vs. Other Economic Systems
- Individual ownership of property is a fundamental characteristic of capitalism.
- Capitalism promotes personal property rights unlike socialism, communism, or a command economy.
Key Element in Capitalism
- Individual ownership of property plays a critical role in a capitalist economy.
- This system contrasts with government ownership or control of the market.
Economic Forces
- Inflation and interest rates are primarily linked to economic forces in the external business environment.
- Other factors such as cultural trends or technological changes are less directly associated.
Contractionary Policy Impacts
- A contractionary policy implemented by the Federal Reserve aims to reduce inflation.
- This policy typically leads to increased interest rates and lower spending, which can slow economic growth.
Demand and Supply Curves
- The demand curve shifts to the right as buyers' incomes increase.
- It shifts to the left when the number of buyers decreases.
- The supply curve shifts to the right with an increase in suppliers.
- It shifts to the left if taxes are imposed, decreasing supply.
Market Structures
- A pure monopoly exists when a single firm accounts for 100% of industry sales.
- The music industry is an example of an oligopoly, where four companies control 90% of the market share.
Business Examples
- Jack & Jill, a specialty store for children's clothing, is an example of a business.
- Wal-Mart operates as a large retail corporation.
- Ford Motor Company is a manufacturer of automobiles.
- Lawson & Tyler law offices represent a service-based business.
- All listed entities collectively serve as valid examples of businesses.
Standard of Living in Honduras
- Low standard of living indicates that citizens struggle to afford basic goods.
- The country does not have a positive balance of trade.
- Wages in Honduras are typically lower than those in the U.S.
- Economic conditions may deter risk-averse entrepreneurs.
Factors of Production
- Inputs necessary for production include natural resources, labor, capital, and entrepreneurship.
- These inputs are collectively referred to as factors of production.
Capitalism vs. Other Economic Systems
- Individual ownership of property is a fundamental characteristic of capitalism.
- Capitalism promotes personal property rights unlike socialism, communism, or a command economy.
Key Element in Capitalism
- Individual ownership of property plays a critical role in a capitalist economy.
- This system contrasts with government ownership or control of the market.
Economic Forces
- Inflation and interest rates are primarily linked to economic forces in the external business environment.
- Other factors such as cultural trends or technological changes are less directly associated.
Contractionary Policy Impacts
- A contractionary policy implemented by the Federal Reserve aims to reduce inflation.
- This policy typically leads to increased interest rates and lower spending, which can slow economic growth.
Demand and Supply Curves
- The demand curve shifts to the right as buyers' incomes increase.
- It shifts to the left when the number of buyers decreases.
- The supply curve shifts to the right with an increase in suppliers.
- It shifts to the left if taxes are imposed, decreasing supply.
Market Structures
- A pure monopoly exists when a single firm accounts for 100% of industry sales.
- The music industry is an example of an oligopoly, where four companies control 90% of the market share.
Business Examples
- Jack & Jill, a specialty store for children's clothing, is an example of a business.
- Wal-Mart operates as a large retail corporation.
- Ford Motor Company is a manufacturer of automobiles.
- Lawson & Tyler law offices represent a service-based business.
- All listed entities collectively serve as valid examples of businesses.
Standard of Living in Honduras
- Low standard of living indicates that citizens struggle to afford basic goods.
- The country does not have a positive balance of trade.
- Wages in Honduras are typically lower than those in the U.S.
- Economic conditions may deter risk-averse entrepreneurs.
Factors of Production
- Inputs necessary for production include natural resources, labor, capital, and entrepreneurship.
- These inputs are collectively referred to as factors of production.
Capitalism vs. Other Economic Systems
- Individual ownership of property is a fundamental characteristic of capitalism.
- Capitalism promotes personal property rights unlike socialism, communism, or a command economy.
Key Element in Capitalism
- Individual ownership of property plays a critical role in a capitalist economy.
- This system contrasts with government ownership or control of the market.
Economic Forces
- Inflation and interest rates are primarily linked to economic forces in the external business environment.
- Other factors such as cultural trends or technological changes are less directly associated.
Contractionary Policy Impacts
- A contractionary policy implemented by the Federal Reserve aims to reduce inflation.
- This policy typically leads to increased interest rates and lower spending, which can slow economic growth.
Demand and Supply Curves
- The demand curve shifts to the right as buyers' incomes increase.
- It shifts to the left when the number of buyers decreases.
- The supply curve shifts to the right with an increase in suppliers.
- It shifts to the left if taxes are imposed, decreasing supply.
Market Structures
- A pure monopoly exists when a single firm accounts for 100% of industry sales.
- The music industry is an example of an oligopoly, where four companies control 90% of the market share.
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