Business 100 Midterm Examination
And 100% Correct Answers 2025-2026
Updated.
business - Answer an organization that seeks profits by providing goods and services
profit - Answer revenue-expenses
not-for-profit organizations - Answer groups that do not pursue profit as a goal; they engage
in charitable, educational, humanitarian, cultural, professional, or other activities, often with a
social purpose
economic system - Answer the way a nation allocates its resources among its citizens
factors of production - Answer the resources used to produce goods and services
-labour (human resources)
-capital
-natural resources
-entrepreneurs
-information resources
labour (human resources) - Answer the mental and physical training talents of people
capital - Answer the funds needed to operate and enterprise
*means MONEY in business*
entrepreneurs - Answer people who risk their time, money, and other resources to start and
manage a business
information resources - Answer information such as market forecasts, economic data, and
specialized knowledge of employees that is useful to a business that helps it achieve its goals
command economy - Answer government controls all or most factors of production and
makes all or most of production decisions
(i)communism
(ii)socialism
,communism - Answer a type of command economy in which the government owns and
operates all industries
socialism - Answer a type of command economy in which the government owns are operates
the main industries, while individuals own and operate less crucial ones
market economy - Answer individuals control all or most factors of production and make all
or most production decisions
market - Answer the world of commercial activity where goods and services are bought and
sold
input market - Answer firms buy households resources that they need in the production of
goods and services (firms buy resources from households, which then supply those resources)
output market - Answer firms supply goods and services in response to demand of
consumers (firms supply goods and services to the households)
capitalism - Answer an economic system in which markets decide what, when, and for whom
to produce
privatization - Answer To change from government or public ownership or control to private
ownership or control.
nationalization - Answer changing something from private to state ownership or control
deregulation - Answer a reduction in the number of laws affecting business activity
How does government affect business? - Answer Customer
Regulator
Competitor
Taxation Agent
Gives Incentives
Gives Essential Services
law of demand - Answer buyers will purchase (demand) more as a product's price drops
, law of supply - Answer producers will produce (supply) more as a product's price rises
private enterprise - Answer an economic system characterized by private property rights,
freedom of choice, profits, and competition
revenue taxes - Answer designed to generate cash (including income taxes)
income taxes - Answer paid by individuals and businesses that represent money earned in
one year (includes progressive and recessive taxes)
lobbyist - Answer someone who tries to persuade legislators to vote for bills that the
lobbyists favor
trade association - Answer an organization dedicated to promoting the interests and
assisting the members of a particular industry
competition - Answer when businesses vie for the same resources or customers in a
particular market, which motivates them to operate more efficiently, make their products
better, and reduce prices of their products
perfect competition - Answer -has many sellers
-products are basically identical
-relatively easy to enter market
-individual firms have no control over price, as consumers will purchase the cheapest one
monopolistic competition - Answer -has few to many sellers
-product is unique (to some)
-differentiated brand gives some control over pricing
oligopoly - Answer - a few large suppliers
-hard to enter
-gravitates toward a common "market price"
-products are similar
-each supplier knows the others prices
monopoly - Answer -one producer
And 100% Correct Answers 2025-2026
Updated.
business - Answer an organization that seeks profits by providing goods and services
profit - Answer revenue-expenses
not-for-profit organizations - Answer groups that do not pursue profit as a goal; they engage
in charitable, educational, humanitarian, cultural, professional, or other activities, often with a
social purpose
economic system - Answer the way a nation allocates its resources among its citizens
factors of production - Answer the resources used to produce goods and services
-labour (human resources)
-capital
-natural resources
-entrepreneurs
-information resources
labour (human resources) - Answer the mental and physical training talents of people
capital - Answer the funds needed to operate and enterprise
*means MONEY in business*
entrepreneurs - Answer people who risk their time, money, and other resources to start and
manage a business
information resources - Answer information such as market forecasts, economic data, and
specialized knowledge of employees that is useful to a business that helps it achieve its goals
command economy - Answer government controls all or most factors of production and
makes all or most of production decisions
(i)communism
(ii)socialism
,communism - Answer a type of command economy in which the government owns and
operates all industries
socialism - Answer a type of command economy in which the government owns are operates
the main industries, while individuals own and operate less crucial ones
market economy - Answer individuals control all or most factors of production and make all
or most production decisions
market - Answer the world of commercial activity where goods and services are bought and
sold
input market - Answer firms buy households resources that they need in the production of
goods and services (firms buy resources from households, which then supply those resources)
output market - Answer firms supply goods and services in response to demand of
consumers (firms supply goods and services to the households)
capitalism - Answer an economic system in which markets decide what, when, and for whom
to produce
privatization - Answer To change from government or public ownership or control to private
ownership or control.
nationalization - Answer changing something from private to state ownership or control
deregulation - Answer a reduction in the number of laws affecting business activity
How does government affect business? - Answer Customer
Regulator
Competitor
Taxation Agent
Gives Incentives
Gives Essential Services
law of demand - Answer buyers will purchase (demand) more as a product's price drops
, law of supply - Answer producers will produce (supply) more as a product's price rises
private enterprise - Answer an economic system characterized by private property rights,
freedom of choice, profits, and competition
revenue taxes - Answer designed to generate cash (including income taxes)
income taxes - Answer paid by individuals and businesses that represent money earned in
one year (includes progressive and recessive taxes)
lobbyist - Answer someone who tries to persuade legislators to vote for bills that the
lobbyists favor
trade association - Answer an organization dedicated to promoting the interests and
assisting the members of a particular industry
competition - Answer when businesses vie for the same resources or customers in a
particular market, which motivates them to operate more efficiently, make their products
better, and reduce prices of their products
perfect competition - Answer -has many sellers
-products are basically identical
-relatively easy to enter market
-individual firms have no control over price, as consumers will purchase the cheapest one
monopolistic competition - Answer -has few to many sellers
-product is unique (to some)
-differentiated brand gives some control over pricing
oligopoly - Answer - a few large suppliers
-hard to enter
-gravitates toward a common "market price"
-products are similar
-each supplier knows the others prices
monopoly - Answer -one producer
