C201 BUSINESS ACUMEN QUESTIONS & ANSWERS
Study of small economic units, such as individual consumers, families, and businesses -
Answers -microeconomics
Willingness and ability of buyers to purchase goods and services - Answers -demand
Willingness and ability of sellers to provide goods and services - Answers -supply
Social science that analyzes the choices people and governments make in allocating
scarce resources - Answers -economics
Graph of the amount of a product that buyers will purchase at different prices - Answers
-demand curve
Graph that shows the relationship between different prices and the quantities that
sellers will offer for sale, regardless of demand - Answers -supply curve
Prevailing market price at which you can buy an item - Answers -equilibrium price
Study of a nation's overall economic issues, such as how an economy maintains and
allocates resources and how a government's policies affect the standards of living of its
citizens - Answers -macroeconomics
Few to many competitors, somewhat difficult entry, different goods or services, and
some control over price
Ex. Local fitness center - Answers -monopolistic competition
Few competitors, difficult entry, similar or different goods or services, and some control
over price
Ex. Boeing aircraft - Answers -oligopoly
No direct competition, entry regulated by the government, no direct competing products
or services, and considerable control over price in a pure but little control over price in a
regulated
Ex. Exclusive supplier of major league baseballs - Answers -monopoly
Economic system in which government controls determine business ownership, profits,
and resource allocation to accomplish government goals rather than those set by
individual firms - Answers -planned economy
Economic system characterized by government ownership and operation of major
industries such as communications - Answers -socialism
Economic system in which all property would be shared equally by the people of a
community under the direction of a strong central government - Answers -communism
, Economic system that draws from both types of economies, to different degrees -
Answers -mixed market economies
Conversion of government-owned and operated companies into privately held
businesses - Answers -privatization
Businesses are owned privately, managed by owners, owners and investors entitled to
profits, rights to choose occupation and join labor unions, and considerable incentives to
motivate workers - Answers -capitalism (private enterprise)
Government owns the means to production with few exceptions, centralized
management, profits are not allowed, employee rights are limited, and incentives are
emerging - Answers -communism
Government owns basic industries but private owners operate small enterprises,
significant government planning, only private sector generates profits, workers choose
jobs and union membership but government influences career decisions, and incentives
are usually limited but motivate the private sector workers - Answers -socialism
Strong private sector with public enterprises, management of private sector resembles
capitalism, owners and investors entitled to private sector profits but with high taxation,
workers choose jobs and union membership, and capitalist incentives in the private
sector - Answers -mixed economy
Cyclical economic contraction that lasts for six months or longer - Answers -recession
Relationship between the number of units produced and the number of human and
other production inputs necessary to produce them
Formula: output(goods or service provided)/input(human/natural resources, capital) = -
Answers -productivity
Sum of all goods and services produced within a country's boundaries during a specific
time period, such as a year - Answers -gross domestic product (GDP)
Economic situation characterized by rising prices caused by a combination of excess
consumer demand and increases in the costs of raw materials, component parts,
human resources, and other factors of production - Answers -inflation
Inflation rate of an economy after energy and food prices are removed - Answers -core
inflation rate
Economic situation characterized by soaring prices - Answers -hyperinflation
Opposite of inflation, occurs when prices continue to fall - Answers -deflation
Study of small economic units, such as individual consumers, families, and businesses -
Answers -microeconomics
Willingness and ability of buyers to purchase goods and services - Answers -demand
Willingness and ability of sellers to provide goods and services - Answers -supply
Social science that analyzes the choices people and governments make in allocating
scarce resources - Answers -economics
Graph of the amount of a product that buyers will purchase at different prices - Answers
-demand curve
Graph that shows the relationship between different prices and the quantities that
sellers will offer for sale, regardless of demand - Answers -supply curve
Prevailing market price at which you can buy an item - Answers -equilibrium price
Study of a nation's overall economic issues, such as how an economy maintains and
allocates resources and how a government's policies affect the standards of living of its
citizens - Answers -macroeconomics
Few to many competitors, somewhat difficult entry, different goods or services, and
some control over price
Ex. Local fitness center - Answers -monopolistic competition
Few competitors, difficult entry, similar or different goods or services, and some control
over price
Ex. Boeing aircraft - Answers -oligopoly
No direct competition, entry regulated by the government, no direct competing products
or services, and considerable control over price in a pure but little control over price in a
regulated
Ex. Exclusive supplier of major league baseballs - Answers -monopoly
Economic system in which government controls determine business ownership, profits,
and resource allocation to accomplish government goals rather than those set by
individual firms - Answers -planned economy
Economic system characterized by government ownership and operation of major
industries such as communications - Answers -socialism
Economic system in which all property would be shared equally by the people of a
community under the direction of a strong central government - Answers -communism
, Economic system that draws from both types of economies, to different degrees -
Answers -mixed market economies
Conversion of government-owned and operated companies into privately held
businesses - Answers -privatization
Businesses are owned privately, managed by owners, owners and investors entitled to
profits, rights to choose occupation and join labor unions, and considerable incentives to
motivate workers - Answers -capitalism (private enterprise)
Government owns the means to production with few exceptions, centralized
management, profits are not allowed, employee rights are limited, and incentives are
emerging - Answers -communism
Government owns basic industries but private owners operate small enterprises,
significant government planning, only private sector generates profits, workers choose
jobs and union membership but government influences career decisions, and incentives
are usually limited but motivate the private sector workers - Answers -socialism
Strong private sector with public enterprises, management of private sector resembles
capitalism, owners and investors entitled to private sector profits but with high taxation,
workers choose jobs and union membership, and capitalist incentives in the private
sector - Answers -mixed economy
Cyclical economic contraction that lasts for six months or longer - Answers -recession
Relationship between the number of units produced and the number of human and
other production inputs necessary to produce them
Formula: output(goods or service provided)/input(human/natural resources, capital) = -
Answers -productivity
Sum of all goods and services produced within a country's boundaries during a specific
time period, such as a year - Answers -gross domestic product (GDP)
Economic situation characterized by rising prices caused by a combination of excess
consumer demand and increases in the costs of raw materials, component parts,
human resources, and other factors of production - Answers -inflation
Inflation rate of an economy after energy and food prices are removed - Answers -core
inflation rate
Economic situation characterized by soaring prices - Answers -hyperinflation
Opposite of inflation, occurs when prices continue to fall - Answers -deflation
