ITB Exam 1 Study Guide with Complete
Solutions
Business - ANS-The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs.
How many businesses fail in the 1st year? - ANS-80%
How many careers does a person have in their lifetime - ANS-5-7 Careers, 12-15 Jobs
National Debt, GDP, and CPI - ANS-National debt - the total of all federal deficits GDP -
Gross Domestic Product - total dollar value of all goods/services produced by a country
during a specified period CPI - Consumer Price Index - Monthly index that measures
changes in prices of a fixed basket of goods purchased by a typical consumer in an
urban area
What type of economy does the U.S. have? - ANS-mixed economy (capitalist &
socialist)
Productivity - ANS-the average level of output per worker per hour
Business Cycle - ANS-The recurrence of periods of growth and recession in a nation's
economic activity
Supply, demand, equilibrium - ANS-Supply: The quantity of a product that produces are
willing to sell at each of various prices, Demand: The quantity of a product that buyers
are willing to purchase at each of various prices, Equilibrium: The equal point of supply
and demand
What is ethics? Why do companies need ethics? - ANS-Ethics is the study of right and
wrong and of the morality of the choice individuals make. Companies need a code of
ethics to avoid legality issues and corruption.
Affirmative Action Plan - ANS-A plan designed to increase the number of minority
employees at all levels within an organization
What do consumers want from products? - ANS-Right to safety, right to variety of
choices, right to be informed and right to be heard
Solutions
Business - ANS-The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs.
How many businesses fail in the 1st year? - ANS-80%
How many careers does a person have in their lifetime - ANS-5-7 Careers, 12-15 Jobs
National Debt, GDP, and CPI - ANS-National debt - the total of all federal deficits GDP -
Gross Domestic Product - total dollar value of all goods/services produced by a country
during a specified period CPI - Consumer Price Index - Monthly index that measures
changes in prices of a fixed basket of goods purchased by a typical consumer in an
urban area
What type of economy does the U.S. have? - ANS-mixed economy (capitalist &
socialist)
Productivity - ANS-the average level of output per worker per hour
Business Cycle - ANS-The recurrence of periods of growth and recession in a nation's
economic activity
Supply, demand, equilibrium - ANS-Supply: The quantity of a product that produces are
willing to sell at each of various prices, Demand: The quantity of a product that buyers
are willing to purchase at each of various prices, Equilibrium: The equal point of supply
and demand
What is ethics? Why do companies need ethics? - ANS-Ethics is the study of right and
wrong and of the morality of the choice individuals make. Companies need a code of
ethics to avoid legality issues and corruption.
Affirmative Action Plan - ANS-A plan designed to increase the number of minority
employees at all levels within an organization
What do consumers want from products? - ANS-Right to safety, right to variety of
choices, right to be informed and right to be heard
