BUSI 1301 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Free Enterprise
Answer:
The system of business in which individuals are free to decide what to produce,
how to produce it, and at what price to sell it.
Question:
2. Business
Answer:
the organized effort of individuals to produce and sell, for a profit, the goods and
services that satisfy society's needs.
Question:
3. Four resources of business
Answer:
Human resources, material resources, informational resources, financial resources
Question:
4. Stakeholders
Answer:
all the different people or groups of people who are affected by the policies,
decisions, and activities made by an organization.
Question:
5. Economics
Answer:
The study of how wealth is created and distributed
Question:
6. Economy
Answer:
The total sum of product and service transactions in a region, country, or group of
nations
,Question:
7. Microeconomics
Answer:
The study of decisions made by individuals and businesses.
Question:
8. Macroeconomics
Answer:
The study of National economy and Global economy
Question:
9. Adam Smith (Wealth of Nations)
Answer:
Society pursues self-interest, people work hard if they earn more pay/earn more
profit, promotes good ol' community
Question:
10. Invisible Hand
Answer:
describes how an individual's own personal gain benefits others and a nation's
economy
Question:
11. Capitalism
Answer:
an economic system in which capital assets are privately owned and items are
brought to the market to make a profit
Question:
12. Mixed Economy
Answer:
an economy that exhibits elements of both capitalism and socialism
Question:
13. Command Economy
Answer:
an economic system in which the government decides what goods and services
will be produced, how they will be produced, for whom available goods and
services will be produced, and who owns and controls the major factors of
production
, Question:
14. Socialism
Answer:
Key industries are owned/controlled by government
land, buildings, and raw materials may be property of state
Private ownership is permitted to varying degrees
people may choose their own occupations
national goals determine what is produced and how
uses taxes, rents, and wages to control distribution
Question:
15. Communism
Answer:
Karl Marx: Father
- Advocated classless society
- Citizens own all economic resources
- Workers contribute based on their ability and receive benefits based on need.
Centralized planning to set prices and wages
Emphasis on government's needs, not consumers'
No job choice; professionals better off than factory workers
Question:
16. Economic Indicators
Answer:
-Gross domestic product (GDP)
-Inflation
-Deflation
-Unemployment rate
-Consumer price index (CPI)
-Producer price index (PPI)
Question:
17. Balance of trade
Answer:
The total value of a nation's exports minus the total value of its imports over a
specific period of time
Question:
18. Bank credit
Answer:
A statistic that measures the lending activity of commercial financial institutions
CORRECT ANSWERS
Question:
1. Free Enterprise
Answer:
The system of business in which individuals are free to decide what to produce,
how to produce it, and at what price to sell it.
Question:
2. Business
Answer:
the organized effort of individuals to produce and sell, for a profit, the goods and
services that satisfy society's needs.
Question:
3. Four resources of business
Answer:
Human resources, material resources, informational resources, financial resources
Question:
4. Stakeholders
Answer:
all the different people or groups of people who are affected by the policies,
decisions, and activities made by an organization.
Question:
5. Economics
Answer:
The study of how wealth is created and distributed
Question:
6. Economy
Answer:
The total sum of product and service transactions in a region, country, or group of
nations
,Question:
7. Microeconomics
Answer:
The study of decisions made by individuals and businesses.
Question:
8. Macroeconomics
Answer:
The study of National economy and Global economy
Question:
9. Adam Smith (Wealth of Nations)
Answer:
Society pursues self-interest, people work hard if they earn more pay/earn more
profit, promotes good ol' community
Question:
10. Invisible Hand
Answer:
describes how an individual's own personal gain benefits others and a nation's
economy
Question:
11. Capitalism
Answer:
an economic system in which capital assets are privately owned and items are
brought to the market to make a profit
Question:
12. Mixed Economy
Answer:
an economy that exhibits elements of both capitalism and socialism
Question:
13. Command Economy
Answer:
an economic system in which the government decides what goods and services
will be produced, how they will be produced, for whom available goods and
services will be produced, and who owns and controls the major factors of
production
, Question:
14. Socialism
Answer:
Key industries are owned/controlled by government
land, buildings, and raw materials may be property of state
Private ownership is permitted to varying degrees
people may choose their own occupations
national goals determine what is produced and how
uses taxes, rents, and wages to control distribution
Question:
15. Communism
Answer:
Karl Marx: Father
- Advocated classless society
- Citizens own all economic resources
- Workers contribute based on their ability and receive benefits based on need.
Centralized planning to set prices and wages
Emphasis on government's needs, not consumers'
No job choice; professionals better off than factory workers
Question:
16. Economic Indicators
Answer:
-Gross domestic product (GDP)
-Inflation
-Deflation
-Unemployment rate
-Consumer price index (CPI)
-Producer price index (PPI)
Question:
17. Balance of trade
Answer:
The total value of a nation's exports minus the total value of its imports over a
specific period of time
Question:
18. Bank credit
Answer:
A statistic that measures the lending activity of commercial financial institutions
