24 Questions
What is a measure of economic growth that compares the production of a system with the resources required to produce it?
Productivity
Which economic indicator is defined as the amount of money a government owes its creditors?
National Debt
What occurs when the general price level of goods and services in an economy increases over time?
Inflation
What is a period of decline in aggregate output, as measured by GDP, in an economy?
Recession
What is the term for the level of joblessness among people actively seeking work in an economy?
Unemployment rate
What is the term for the economic value of all products that a country exports minus the economic value of its imported products?
Balance of trade
What is the primary objective of a business organization?
To provide goods and services to earn profits
What is the external environment of business composed of?
Everything outside an organization's boundaries that might affect it
What is the key difference between a business's revenues and its expenses?
Profits and losses
What is the primary function of an economic system?
To allocate resources among citizens and organizations
What is the relationship between a business's profits and its success?
A business's profits are a measure of its success or failure
What is the role of the external environment in affecting business performance?
It has a significant impact on business performance
What are the primary decision-makers in a planned economy?
A centralized government
Which type of economy combines features of both planned and market economies?
Mixed market economy
What is the term for the willingness and ability of buyers to purchase a product?
Demand
Which of the following is NOT a characteristic of a market economy?
A centralized government controls the factors of production
What is the primary purpose of economic indicators?
To help assess the performance of an economy
What are the resources that a country's businesses use to produce goods and services?
Factors of production
What is the primary measure of growth in the business cycle?
Aggregate output
What refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?
Gross Domestic Product (GDP)
What is the total quantity and quality of goods and services that people in a nation can purchase with the currency used in their economic system?
Standard of Living
What pattern does the economy follow in terms of short-term ups and downs?
Business Cycle
What is the total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located?
Gross National Product (GNP)
What is another term for the total output of an economy?
Gross Domestic Product (GDP)
Test your understanding of the nature of business, its goals and functions, and the external environments that impact organizational success. Explore the different types of global economic systems and the importance of the economic environment to business.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
