BUS 6600 FINAL EXAM STUDY GUIDE
Revenue - Answers - Total amount of money a business takes in during a given period
by selling goods and services
Businesses are part of an economic system that helps CREATE A HIGHER
STANDARD OF LIVING and quality of life for everyone
Standard of living - Answers - amount of goods and services people can buy with the
money they have
Quality of life - Answers - The general well-being of a society in terms of its political
freedom, natural environment, education, health care, safety, amount of leisure, and
rewards that add to the satisfaction and joy that other goods and services provide.
Social Entrepreneurs - Answers - People who use business principles to start and
manage organizations that are not for profit and who help countries with their social
issues
5 Factors of production to create wealth - Answers - Land, Labor, Capital,
Entrepreneurship, Knowledge
Productivity - Answers - the amount of output you generate given the amount of input
Databases allow store to carry fewer items and less inventory
Demography - Answers - statistical study of the human population in regard to its size,
density, and other characteristics such as age, race, gender and income
Richest demographic group in the US - Answers - 65-74
Two important environmental changes in recent years have been the - Answers - the
growth of global competition and increase of free trade
Rich countries are rich because of entrepreneurship and knowledge - Answers -
In 2015 the UN adopted Sustainable Development Goals (SDGs) - Answers - lists
specific targets for ending poverty and improving lives of the disadvantaged in the next
15 years
Gen Z- born after the mid-1990s - Answers - Will soon be the largest group of
consumers in the world
The baby-boom generation (1946-1964) - Answers -
,Globalization - Answers - World trade
Most farmers who lost their jobs in the 19th and 20th century went to work in factories -
Answers -
Service Sector employs 85% of workers in the US - Answers -
Intellectual Capital - Answers - employee knowledge and skills that can be used to
create new products, attract new customers, and increase profits
Economics - Answers - the study of how society chooses to employ resources to
produce goods and services and distribute them for consumption among various
competing groups and individuals
Macroeconomics - Answers - part of the economic study that looks at the operation of a
nation's economy as a whole
Microeconomics - Answers - part of the economic study that looks at the behavior of
people and the organizations in particular markets
Resource Development - Answers - the study of how to increase resources and to
create the conditions that will make better use of those resources
English economist Thomas Malthus believed that population growth would outstrip
resources - Answers -
Scottish economist Adam Smith envisioned creating more resources so that everyone
could become wealthier - Answers -
1776 Smith wrote The Wealth of Nations - Answers - outlining steps to create prosperity
Adam Smith is considered the Father of Modern Economics - Answers -
The Invisible Hand - Answers - the process that turns self-directed gain into social and
economic benefits for all
Free Market Capitalism has 4 basic rights - Answers - private property, own a business,
freedom of competition, freedom of choice
Pres. Franklin Roosevelt added 4 more freedoms - Answers - speech and expression,
worship in your own way, freedom from want, freedom from fear
equilibrium point - Answers - the point at which quantity supplied equals quantity
demanded
,Perfect Competition - Answers - the degree of competition in which there are many
sellers in a market and none is large enough to dictate the price of a product
monopolistic competition - Answers - the degree of competition in which a large number
of sellers produce very similar products that buyers nevertheless perceive as different
Oligopoly - Answers - A degree of competition in which just a few sellers dominate the
market
monopoly - Answers - a degree of competition in which only one seller controls the total
supply of a product or service, and sets the price
US laws prohibit the creation of monopolies but do permit approved monopolies in
markets for public utilities - Answers -
Deregulation is meant to increase competition and decrease consumer prices - Answers
-
Socialism - Answers - economic system in which government owns some factors of
production and has a role in determining what and how goods are produced (e.g. steel
mills, coal mines and utilities)
Brain Drain - Answers - the loss of highly educated and skilled workers to other
countries
Communism - Answers - economic and political system in which the government makes
almost all economic decisions and owns almost all the major factors of production
North Korea and Cuba are suffering severe economic depression - Answers -
Free market economies - Answers - economic systems in which the MARKET largely
determines what goods and services get produced, who gets them, and how the
economy grows
Command Economies - Answers - economic systems in which the GOVERNMENT
largely decides what goods and services will be produced, who will get them, and how
the economy will grow (socialism & Communism)
Mixed Economies - Answers - economic systems in which some allocation of resources
is made by the market and some by government (USA)
Gross Domestic Product (GDP) - Answers - the total value of final goods and services
produced in a country in a given year
Gross Output (GO) - Answers - measure of total sales volume at all stages of
production
, Unemployment Rate - Answers - number of civilians at least 16 years old who are
unemployed and TRIED to find a job within the prior 4 weeks
4 types of unemployment - Answers - frictional, structural, cyclical, seasonal
Disinflation - Answers - situation in which prices increases are slowing (the inflation rate
is declining)
Stagflation - Answers - A situation when the economy is slowing but prices are going up
anyhow.
Deflation - Answers - situation in which prices are declining, occurring when countries
produce so many goods that people cannot afford to buy them all
Consumer Price Index (CPI) - Answers - consists of MONTHLY statistics that measure
the pace of inflation or deflation
Core Inflation - Answers - CPI minus food and energy costs
Producer Price Index (PPI) - Answers - index that measures prices at the wholesale
level
4 phases of business cycles - Answers - economic boom, recession, depression,
recovery
Recession - Answers - 2 or more consecutive quarters of decline in GDP
Depression - Answers - severe recession usually accompanied by deflation
Fiscal policy - Answers - Government policy that attempts to manage the economy by
controlling taxing and government spending.
Keynesian economic Theory - Answers - The theory that a government policy of
increasing spending and cutting taxes could stimulate the economy in a recession.
US debt is over 17 trillion dollars - Answers -
The Federal Reserve System - Answers - semiprivate organization that decides how
much money to put into circulation
Monetary policy - Answers - management of the money supply and interest rates-
controlled by the Fed
Conscious capitalism - Answers - capitalism based on businesses that serve all major
stakeholders not just stockholders
Revenue - Answers - Total amount of money a business takes in during a given period
by selling goods and services
Businesses are part of an economic system that helps CREATE A HIGHER
STANDARD OF LIVING and quality of life for everyone
Standard of living - Answers - amount of goods and services people can buy with the
money they have
Quality of life - Answers - The general well-being of a society in terms of its political
freedom, natural environment, education, health care, safety, amount of leisure, and
rewards that add to the satisfaction and joy that other goods and services provide.
Social Entrepreneurs - Answers - People who use business principles to start and
manage organizations that are not for profit and who help countries with their social
issues
5 Factors of production to create wealth - Answers - Land, Labor, Capital,
Entrepreneurship, Knowledge
Productivity - Answers - the amount of output you generate given the amount of input
Databases allow store to carry fewer items and less inventory
Demography - Answers - statistical study of the human population in regard to its size,
density, and other characteristics such as age, race, gender and income
Richest demographic group in the US - Answers - 65-74
Two important environmental changes in recent years have been the - Answers - the
growth of global competition and increase of free trade
Rich countries are rich because of entrepreneurship and knowledge - Answers -
In 2015 the UN adopted Sustainable Development Goals (SDGs) - Answers - lists
specific targets for ending poverty and improving lives of the disadvantaged in the next
15 years
Gen Z- born after the mid-1990s - Answers - Will soon be the largest group of
consumers in the world
The baby-boom generation (1946-1964) - Answers -
,Globalization - Answers - World trade
Most farmers who lost their jobs in the 19th and 20th century went to work in factories -
Answers -
Service Sector employs 85% of workers in the US - Answers -
Intellectual Capital - Answers - employee knowledge and skills that can be used to
create new products, attract new customers, and increase profits
Economics - Answers - the study of how society chooses to employ resources to
produce goods and services and distribute them for consumption among various
competing groups and individuals
Macroeconomics - Answers - part of the economic study that looks at the operation of a
nation's economy as a whole
Microeconomics - Answers - part of the economic study that looks at the behavior of
people and the organizations in particular markets
Resource Development - Answers - the study of how to increase resources and to
create the conditions that will make better use of those resources
English economist Thomas Malthus believed that population growth would outstrip
resources - Answers -
Scottish economist Adam Smith envisioned creating more resources so that everyone
could become wealthier - Answers -
1776 Smith wrote The Wealth of Nations - Answers - outlining steps to create prosperity
Adam Smith is considered the Father of Modern Economics - Answers -
The Invisible Hand - Answers - the process that turns self-directed gain into social and
economic benefits for all
Free Market Capitalism has 4 basic rights - Answers - private property, own a business,
freedom of competition, freedom of choice
Pres. Franklin Roosevelt added 4 more freedoms - Answers - speech and expression,
worship in your own way, freedom from want, freedom from fear
equilibrium point - Answers - the point at which quantity supplied equals quantity
demanded
,Perfect Competition - Answers - the degree of competition in which there are many
sellers in a market and none is large enough to dictate the price of a product
monopolistic competition - Answers - the degree of competition in which a large number
of sellers produce very similar products that buyers nevertheless perceive as different
Oligopoly - Answers - A degree of competition in which just a few sellers dominate the
market
monopoly - Answers - a degree of competition in which only one seller controls the total
supply of a product or service, and sets the price
US laws prohibit the creation of monopolies but do permit approved monopolies in
markets for public utilities - Answers -
Deregulation is meant to increase competition and decrease consumer prices - Answers
-
Socialism - Answers - economic system in which government owns some factors of
production and has a role in determining what and how goods are produced (e.g. steel
mills, coal mines and utilities)
Brain Drain - Answers - the loss of highly educated and skilled workers to other
countries
Communism - Answers - economic and political system in which the government makes
almost all economic decisions and owns almost all the major factors of production
North Korea and Cuba are suffering severe economic depression - Answers -
Free market economies - Answers - economic systems in which the MARKET largely
determines what goods and services get produced, who gets them, and how the
economy grows
Command Economies - Answers - economic systems in which the GOVERNMENT
largely decides what goods and services will be produced, who will get them, and how
the economy will grow (socialism & Communism)
Mixed Economies - Answers - economic systems in which some allocation of resources
is made by the market and some by government (USA)
Gross Domestic Product (GDP) - Answers - the total value of final goods and services
produced in a country in a given year
Gross Output (GO) - Answers - measure of total sales volume at all stages of
production
, Unemployment Rate - Answers - number of civilians at least 16 years old who are
unemployed and TRIED to find a job within the prior 4 weeks
4 types of unemployment - Answers - frictional, structural, cyclical, seasonal
Disinflation - Answers - situation in which prices increases are slowing (the inflation rate
is declining)
Stagflation - Answers - A situation when the economy is slowing but prices are going up
anyhow.
Deflation - Answers - situation in which prices are declining, occurring when countries
produce so many goods that people cannot afford to buy them all
Consumer Price Index (CPI) - Answers - consists of MONTHLY statistics that measure
the pace of inflation or deflation
Core Inflation - Answers - CPI minus food and energy costs
Producer Price Index (PPI) - Answers - index that measures prices at the wholesale
level
4 phases of business cycles - Answers - economic boom, recession, depression,
recovery
Recession - Answers - 2 or more consecutive quarters of decline in GDP
Depression - Answers - severe recession usually accompanied by deflation
Fiscal policy - Answers - Government policy that attempts to manage the economy by
controlling taxing and government spending.
Keynesian economic Theory - Answers - The theory that a government policy of
increasing spending and cutting taxes could stimulate the economy in a recession.
US debt is over 17 trillion dollars - Answers -
The Federal Reserve System - Answers - semiprivate organization that decides how
much money to put into circulation
Monetary policy - Answers - management of the money supply and interest rates-
controlled by the Fed
Conscious capitalism - Answers - capitalism based on businesses that serve all major
stakeholders not just stockholders
