Business Environment: Chapter 1, Business Essentials 9e

Play an AI-generated podcast conversation about this lesson

What is a measure of economic growth that compares the production of a system with the resources required to produce it?

National Debt

Balance of trade

Productivity (correct)

Economic Stability

Which economic indicator is defined as the amount of money a government owes its creditors?

Productivity

National Debt (correct)

Unemployment rate

Balance of trade

What occurs when the general price level of goods and services in an economy increases over time?

Unemployment

Inflation (correct)

Recession

Economic Stability

What is a period of decline in aggregate output, as measured by GDP, in an economy?

Recession Signup and view all the answers

What is the term for the level of joblessness among people actively seeking work in an economy?

Unemployment rate Signup and view all the answers

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 Signup and view all the answers

What is the primary objective of a business organization?

To provide goods and services to earn profits Signup and view all the answers

What is the external environment of business composed of?

Everything outside an organization's boundaries that might affect it Signup and view all the answers

What is the key difference between a business's revenues and its expenses?

Profits and losses Signup and view all the answers

What is the primary function of an economic system?

To allocate resources among citizens and organizations Signup and view all the answers

What is the relationship between a business's profits and its success?

A business's profits are a measure of its success or failure Signup and view all the answers

What is the role of the external environment in affecting business performance?

It has a significant impact on business performance Signup and view all the answers

What are the primary decision-makers in a planned economy?

A centralized government Signup and view all the answers

Which type of economy combines features of both planned and market economies?

Mixed market economy Signup and view all the answers

What is the term for the willingness and ability of buyers to purchase a product?

Demand Signup and view all the answers

Which of the following is NOT a characteristic of a market economy?

A centralized government controls the factors of production Signup and view all the answers

What is the primary purpose of economic indicators?

To help assess the performance of an economy Signup and view all the answers

What are the resources that a country's businesses use to produce goods and services?

Factors of production Signup and view all the answers

What is the primary measure of growth in the business cycle?

Aggregate output Signup and view all the answers

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) Signup and view all the answers

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 Signup and view all the answers

What pattern does the economy follow in terms of short-term ups and downs?

Business Cycle Signup and view all the answers

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) Signup and view all the answers

What is another term for the total output of an economy?