ADMS 1000 FINAL UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Market economy
Answer:
A capitalist or private enterprise system is a system in which individuals can
decide to be employees or entrepreneurs.
Ex: China and Vietnam
Question:
2. Communism
Answer:
exists when the government owns all the country's resources and makes
economic decisions centrally.
Ex: Cuba and North Korea
Question:
3. Socialism
Answer:
An economic system whereby the government has large ownership or control of
its major industries essential to the country ex: coal mines, transportation,
healthcare.
Ex: sweden denmark, france
Question:
4. Mixed Economy
Answer:
An economy that combines features of more than one economic system. Ex
canada
Question:
5. Inflation
Answer:
Rising prices
Question:
6. Deflation
Answer:
Decreasing or falling prices. (Industrial productivity can increase and cost savings
can be passed onto customers in the form of lower prices)
,Question:
7. Interest rates
Answer:
Fee charge for borrowing money
Affect cost of borrowing
Affect customers ability to buy goods and services
Question:
8. The Balance of Trade =
Answer:
Value that a country exports-imports
Question:
9. Trade surplus =
Answer:
exports greater than imports (growth)
Question:
10. Trade deficit =
Answer:
imports greater than exports
Question:
11. Deficit indicates:
Answer:
a negative balance of trade
Question:
12. Surplus indicates:
Answer:
a positive balance of trade and encourages economic growth
Question:
13. Radical Innovations
Answer:
Creates a whole new industry
, Question:
14. Incremental innovations
Answer:
minor improvements or modifications to an existing product.
also extends the life cycle
Question:
15. Innovation and technology:
Answer:
evolution of technology
Question:
16. Economic System
Answer:
The way the five factors of production are managed (public or private ownership)
Question:
17. Public Ownership
Answer:
Resources/production decisions are made by the government
Question:
18. Private Ownership
Answer:
Individuals can own their businesses and make their own decisions
Question:
19. Five factors of production are?
Answer:
Entrepreneurship, Capital, Labour, Natural Resources, Knowledge
Question:
20. Economic Environment
Answer:
Economic conditions under which an organization operates: job growth,
consumer confidence, interest rates and much more
1) Individuals 2) Businesses 3) Government
AND CORRECT ANSWERS
Question:
1. Market economy
Answer:
A capitalist or private enterprise system is a system in which individuals can
decide to be employees or entrepreneurs.
Ex: China and Vietnam
Question:
2. Communism
Answer:
exists when the government owns all the country's resources and makes
economic decisions centrally.
Ex: Cuba and North Korea
Question:
3. Socialism
Answer:
An economic system whereby the government has large ownership or control of
its major industries essential to the country ex: coal mines, transportation,
healthcare.
Ex: sweden denmark, france
Question:
4. Mixed Economy
Answer:
An economy that combines features of more than one economic system. Ex
canada
Question:
5. Inflation
Answer:
Rising prices
Question:
6. Deflation
Answer:
Decreasing or falling prices. (Industrial productivity can increase and cost savings
can be passed onto customers in the form of lower prices)
,Question:
7. Interest rates
Answer:
Fee charge for borrowing money
Affect cost of borrowing
Affect customers ability to buy goods and services
Question:
8. The Balance of Trade =
Answer:
Value that a country exports-imports
Question:
9. Trade surplus =
Answer:
exports greater than imports (growth)
Question:
10. Trade deficit =
Answer:
imports greater than exports
Question:
11. Deficit indicates:
Answer:
a negative balance of trade
Question:
12. Surplus indicates:
Answer:
a positive balance of trade and encourages economic growth
Question:
13. Radical Innovations
Answer:
Creates a whole new industry
, Question:
14. Incremental innovations
Answer:
minor improvements or modifications to an existing product.
also extends the life cycle
Question:
15. Innovation and technology:
Answer:
evolution of technology
Question:
16. Economic System
Answer:
The way the five factors of production are managed (public or private ownership)
Question:
17. Public Ownership
Answer:
Resources/production decisions are made by the government
Question:
18. Private Ownership
Answer:
Individuals can own their businesses and make their own decisions
Question:
19. Five factors of production are?
Answer:
Entrepreneurship, Capital, Labour, Natural Resources, Knowledge
Question:
20. Economic Environment
Answer:
Economic conditions under which an organization operates: job growth,
consumer confidence, interest rates and much more
1) Individuals 2) Businesses 3) Government
