ADMS 1000 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026

ADMS 1000 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026 Economic conditions in which an organization operates - Answers - Recession - Interest Rates - Consumer Confidence - Housing Market - Unemployment - Inflation Individuals - Answers -Work (for business or self) -Spend money (consumer spending) -Pay taxes (so govt. can spend) Business - Answers To make a profit, managers have to balance the right combination of inputs that allow for efficiency, productivity, and overall firm growth. Five Factors of Production - Answers 1. Natural Resources 2. Labor 3. Capital 4. Entrepreneurship 5. Knowledge Government - Answers - Creates laws (to guide/promote the economy) - Promotes tax credits - Ensures qualified labour Microeconomics - Answers the study of smaller components of the economy, such as individuals and businesses. Macroeconomics - Answers the study of larger economic issues involving the economy as a whole. Market economy - Answers Free market system in which individuals can decide to be employees or owners of their own business. The right to make a profit is incentive for individuals to take the risks involved in establishing a business. Communism - Answers the economic system that once existed under the Soviet Union. Instead of individuals freely deciding which products to produce, the government owned essentially all of the country's resources, and economic decisions were made centrally. Socialism - Answers is an economic system whereby the government has large ownership in or control over major industries essential to the country's economy. Coal mines, transportation, steel mills, health care, banking, and utilities are a few examples. Mixed Economy - Answers Combination, Canada is an example of a mixed economy. Types of Competition - Answers monopoly, oligopoly, monopolistic competition, pure competition Goals of Canada's Economic System - Answers - Economic growth - Economic stability - Employment business cycle - Answers expansion, peak, contraction, trough Expansionary phase - Answers Goods are being produced and sold, the workforce is expanding, demand for goods is increasing, and the price of goods is rising. Contraction phase - Answers Declining economic activity and falling profits Recovery Phase - Answers Begins after the trough. Here, economic activity slowly begins to rise and the demand for goods and services increases. GDP - Answers Value of all final goods and services produced within a country's borders. GNP - Answers Value of all final goods and services produced by a national economy inside and outside of the country's borders. Real GDP - Answers GDP adjusted to reflect the effects of inflation Nominal GDP - Answers Not adjusted for inflation and measured in current dollars Productivity - Answers Measures the level of output versus the level of input in an organization Input - Answers Materials, labour, or overhead Output - Answers Finished unit of product ready to be sold Balance of Trade - Answers Value of all the goods and services a country exports minus the value of all the goods and services Trade Surplus - Answers Occurs when exports exceed imports Trade Deficit - Answers Exists when import exceed exports Exchange Rate - Answers Value of a foreign currency compared to a home currency National Debt - Answers Debt accumulated by the government. Budget Deficit - Answers Negative difference between incoming tax revenues and outgoing government expenditures. Economic Stability - Answers Amount of money available and the goods and services produced grow at approximately the same rate. Inflation - Answers Prices rise, costs increase and doing business becomes more expensive. Deflation - Answers Price level of goods is falling. Interest Rate - Answers A fee charged by a lender to a borrower for the use of funds. Employment - Answers Employment is a third goal of Canada's economic system Unemployment - Answers Occurs when qualified individuals actively looking for work are unable to secure employment Frictional Unemployment - Answers Normal labour market turnover, not a downturn in the economy Cyclical Unemployment - Answers Pace of the economy, when the economy slows down or is in a recession, cyclical unemployment is high. Structural Unemployment - Answers Jobs do not correspond to the skills of the labour force unemployed individuals do not live in a region where jobs are available. Technological change Seasonal Unemployment - Answers Unemployment caused by the seasonal nature of the job Introduction Phase - Answers - high fragmentation - entrepreneurial - high degree of innovation - many small competitors - lots of R&D - customers willing to pay a premium - uncertainty about the market - lack of legitimacy Growth Phase - Answers - a dominant design (i.e. standard) - shakeout (firms exiting) - products appeal to wider market - economies of scale - lower prices - growing sales - new entrants Maturity Phase - Answers - Slow growth - Markets saturated - Competition intensifies - Profitability - Price-conscious consumers - Incremental improvements ("new and improved") - Lots of advertising - Price wars Decline Phase - Answers Declining "industry sales" due to one or more of the following: - Changes in demographics - Shifting consumer tastes - Technological substitution Innovation and Technology - Answers Evolution of technology Radical Innovations - Answers Create a whole new industry Incremental Innovations - Answers Minor improvements or modifications to an existing product in the hopes of differentiating it from the competition What is Globalization? - Answers - integration of national economies. - generation of a single world economic system. - expansion of the degree and forms of cross-border transactions. - growth in direct foreign investment in regions across the world. - Shift towards increasing economic interdependence. Push - Answers Pushing firms away from wanting to do business in just one country. - Potential for sales growth - Obtaining Needed Resources Pull - Answers Attracting firms to countries other than their own. - Force of Competition - Shift toward democracy - Reduction in trade barriers - Improvements in technology A Global Business - Answers Engages directly in some form of international business activity, including such activities as exporting, importing or international production.