BUSINESS MANAGEMENT 101 FINAL EXAM UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Economic System
Answer:
A description of how a particular society distributes its resources to produce
goods and services
Question:
2. Communism
Answer:
First described by Karl Marx as a society in which the people, without regard to
class, own all the nation's resources
On paper it appears efficient, but in practice, these economies suffer from:
low standards of living
critical shortages of consumer goods
high prices
corruption and little freedom
Question:
3. Socialism
Answer:
An economic system in which the government owns and operates basic industries
but individuals own most businesses
Most socialist countries are democratic and recognize individual freedoms
The socialist system may allow a higher standard of living and is more stable; but
taxes and unemployment are generally higher in socialist countries
Question:
4. Capitalism/ Free Enterprise
Answer:
An economic system in which individuals own and operate the majority of
businesses that provide goods and services
Pure capitalism or free-market system happens when all economic decisions are
made without government intervention; also called laissez-faire capitalism
Modified capitalism differs from pure capitalism as the government intervenes
and regulates business to some extent
, Question:
5. Supply
Answer:
The number of products businesses are willing to sell at different prices at a
specific time
Question:
6. Demand
Answer:
The number of products consumers are willing to buy at different prices at a
specific time
Question:
7. Equilibrium Price
Answer:
the price at which the number of products supplied equals the amount of
products consumers are willing to buy at a specific time
Question:
8. Pure Competition
Answer:
The market structure that exists when there are many small businesses selling one
standardized product
Question:
9. Monopolistic Competition
Answer:
Fewer businesses than in a pure competition and the differences among the
goods they sell are small
Question:
10. Oligopoly
Answer:
The market structure that exists when there are very few businesses selling a
product
Question:
11. Monopoly
Answer:
The market structure that exists when there is only one business providing a
product in a given market
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Economic System
Answer:
A description of how a particular society distributes its resources to produce
goods and services
Question:
2. Communism
Answer:
First described by Karl Marx as a society in which the people, without regard to
class, own all the nation's resources
On paper it appears efficient, but in practice, these economies suffer from:
low standards of living
critical shortages of consumer goods
high prices
corruption and little freedom
Question:
3. Socialism
Answer:
An economic system in which the government owns and operates basic industries
but individuals own most businesses
Most socialist countries are democratic and recognize individual freedoms
The socialist system may allow a higher standard of living and is more stable; but
taxes and unemployment are generally higher in socialist countries
Question:
4. Capitalism/ Free Enterprise
Answer:
An economic system in which individuals own and operate the majority of
businesses that provide goods and services
Pure capitalism or free-market system happens when all economic decisions are
made without government intervention; also called laissez-faire capitalism
Modified capitalism differs from pure capitalism as the government intervenes
and regulates business to some extent
, Question:
5. Supply
Answer:
The number of products businesses are willing to sell at different prices at a
specific time
Question:
6. Demand
Answer:
The number of products consumers are willing to buy at different prices at a
specific time
Question:
7. Equilibrium Price
Answer:
the price at which the number of products supplied equals the amount of
products consumers are willing to buy at a specific time
Question:
8. Pure Competition
Answer:
The market structure that exists when there are many small businesses selling one
standardized product
Question:
9. Monopolistic Competition
Answer:
Fewer businesses than in a pure competition and the differences among the
goods they sell are small
Question:
10. Oligopoly
Answer:
The market structure that exists when there are very few businesses selling a
product
Question:
11. Monopoly
Answer:
The market structure that exists when there is only one business providing a
product in a given market
