Business 1000 MIDTERM 1 Questions
and All Correct Answers 2026
Updated.
Economic System - Answer The way in which a nation allocates its resources among its
citizens
Factors of production - Answer The resources used to produce goods and services: labour,
capital, entrepreneurs and natural resources
Command economy - Answer An economic system in which government controls all or most
factors of production and makes all of most production decisions.
Market economy - Answer An economic system in which individuals control all or most
factors of production and make all or most production decisions.
Business - Answer An organization that seeks to earn profit by providing goods and services
Profit - Answer What remains if anything after a business's expenses are subtracted from its
sale revenue.
Not for profit organization - Answer An organization that provides goods and services to
customers, but does not seek to make a profit while doing so.
Communism - Answer A type of command economy in which the government owns and
operates all industries.
Market - Answer An exchange process between buyers and sellers of a particular good or
service.
Input Market - Answer Firms buy resources that they need in the production of goods and
services.
Output Market - Answer Firms supply goods and services in response to demand of
consumers.
Capitalism - Answer An economic system in which markets decide what, when, and whom to
produce
, Mixed Market Economy - Answer An economic system with elements of both a command
economy and a market economy; in practise, typical of most nations economies.
Privatization - Answer The transfer of activities from the government to the private sector
Deregulation - Answer A reduction in the number of laws affecting business activity
Competition Act - Answer Prohibits a variety of business practises that lessen competition
Lobbyist - Answer A person hired by a company or an industry to represent it interests with
he government officials
Trade Association - Answer An organization dedicated to promoting the interests and
assisting the members of a particular industry
Demand - Answer The willingness and ability of buyers to purchase a product or service
Supply - Answer The willingness and ability of producers to offer and good or serve for sale
Law of demand - Answer The principle that buyers will purchase more of a product as price
drops
Law of supply - Answer the principle that producers will offer more of a product as price
rises.
Demand and supply schedule - Answer Assessment of the relationships between different
levels of demand and supply at different price levels
Demand curve - Answer graph showing how many units of products will be demanded at
different prices
Supply curve - Answer Graph showing how many units of a product will be supplied at
different prices
Market Price (equilibrium price) - Answer Profit maximizing price at which the quantity of
goods demanded and the quantity of goods supplied are equal
and All Correct Answers 2026
Updated.
Economic System - Answer The way in which a nation allocates its resources among its
citizens
Factors of production - Answer The resources used to produce goods and services: labour,
capital, entrepreneurs and natural resources
Command economy - Answer An economic system in which government controls all or most
factors of production and makes all of most production decisions.
Market economy - Answer An economic system in which individuals control all or most
factors of production and make all or most production decisions.
Business - Answer An organization that seeks to earn profit by providing goods and services
Profit - Answer What remains if anything after a business's expenses are subtracted from its
sale revenue.
Not for profit organization - Answer An organization that provides goods and services to
customers, but does not seek to make a profit while doing so.
Communism - Answer A type of command economy in which the government owns and
operates all industries.
Market - Answer An exchange process between buyers and sellers of a particular good or
service.
Input Market - Answer Firms buy resources that they need in the production of goods and
services.
Output Market - Answer Firms supply goods and services in response to demand of
consumers.
Capitalism - Answer An economic system in which markets decide what, when, and whom to
produce
, Mixed Market Economy - Answer An economic system with elements of both a command
economy and a market economy; in practise, typical of most nations economies.
Privatization - Answer The transfer of activities from the government to the private sector
Deregulation - Answer A reduction in the number of laws affecting business activity
Competition Act - Answer Prohibits a variety of business practises that lessen competition
Lobbyist - Answer A person hired by a company or an industry to represent it interests with
he government officials
Trade Association - Answer An organization dedicated to promoting the interests and
assisting the members of a particular industry
Demand - Answer The willingness and ability of buyers to purchase a product or service
Supply - Answer The willingness and ability of producers to offer and good or serve for sale
Law of demand - Answer The principle that buyers will purchase more of a product as price
drops
Law of supply - Answer the principle that producers will offer more of a product as price
rises.
Demand and supply schedule - Answer Assessment of the relationships between different
levels of demand and supply at different price levels
Demand curve - Answer graph showing how many units of products will be demanded at
different prices
Supply curve - Answer Graph showing how many units of a product will be supplied at
different prices
Market Price (equilibrium price) - Answer Profit maximizing price at which the quantity of
goods demanded and the quantity of goods supplied are equal
