BUS 100 Midterm Exam with Answers
Business: - ✔✔Providing goods and services to others while operating at a profit.
Goods: - ✔✔Tangible products
Services: - ✔✔Intangible products
Revenue: - ✔✔Money earned from conducting business.
Profit: - ✔✔Normal income derived from business activity.
Entrepreneur: - ✔✔People who start a business risking their time and money.
Standard of living: - ✔✔The quality and quantity of products available to a population.
Stakeholders: - ✔✔Those affected by the actions of a business.
Nonprofit: - ✔✔A form of business ownership serving the public good rather than generating
financial gain.
Business Environment: - ✔✔The setting in which business operates.
Economics: - ✔✔The study of the choices made to allocate scarce resources.
Macroeconomics: - ✔✔The economics of countries focusing on the overall economy.
,Microeconomics: - ✔✔The economics of individuals focusing on supply and demand.
Opportunity Cost: - ✔✔The value of what is given up as the result of a decision.
Sunk Cost: - ✔✔Costs already incurred that cannot be recovered.
Economic System: - ✔✔A structure for allocating limited resources.
Free-market Economies: - ✔✔An economic system in which supply and demand determine
prices with minimum government control.
Socialism: - ✔✔The idea that businesses should be owned by the workers.
Communism: - ✔✔The idea that businesses should be owned by the government.
Capitalism: - ✔✔The idea that businesses should be owned by private individuals.
Invisible Hand: - ✔✔Forces that move the free market economy.
Mixed Economies: - ✔✔An economic system in which the government and private sector both
direct the economy.
Supply: - ✔✔The willingness to sell goods at various prices during a specified time.
Demand: - ✔✔The willingness to buy goods at various prices during a specified time.
Law of Demand: - ✔✔As price increases, the quantity demanded decreases.
, Law of Supply: - ✔✔As price increases, the quantity supplied increases.
Surplus: - ✔✔Too much supply.
Shortage: - ✔✔Not enough supply.
Market price: - ✔✔The price at which the quantity demanded equals the quantity supplied.
Economic Indicator: - ✔✔Used to predict the future movements of an economy.
Gross Domestic Product (GDP): - ✔✔An economic indicator showing the total value of
everything a country produces within a year.
Unemployment Rate: - ✔✔An economic indicator showing the percentage of the labor force
who are unemployed.
Labor Force: - ✔✔People 16 or older, working or seeking work.
Underemployment: - ✔✔People working part-time, who want to work full-time.
Inflation: - ✔✔An economic indicator showing the rise in prices over time.
Consumer Price Index (CPI): - ✔✔An economic indicator measuring the cost of a fixed basket of
goods and services over time.
Business Cycle: - ✔✔Describes fluctuations in economic activity, measured by changes in
economic indicators.
Business: - ✔✔Providing goods and services to others while operating at a profit.
Goods: - ✔✔Tangible products
Services: - ✔✔Intangible products
Revenue: - ✔✔Money earned from conducting business.
Profit: - ✔✔Normal income derived from business activity.
Entrepreneur: - ✔✔People who start a business risking their time and money.
Standard of living: - ✔✔The quality and quantity of products available to a population.
Stakeholders: - ✔✔Those affected by the actions of a business.
Nonprofit: - ✔✔A form of business ownership serving the public good rather than generating
financial gain.
Business Environment: - ✔✔The setting in which business operates.
Economics: - ✔✔The study of the choices made to allocate scarce resources.
Macroeconomics: - ✔✔The economics of countries focusing on the overall economy.
,Microeconomics: - ✔✔The economics of individuals focusing on supply and demand.
Opportunity Cost: - ✔✔The value of what is given up as the result of a decision.
Sunk Cost: - ✔✔Costs already incurred that cannot be recovered.
Economic System: - ✔✔A structure for allocating limited resources.
Free-market Economies: - ✔✔An economic system in which supply and demand determine
prices with minimum government control.
Socialism: - ✔✔The idea that businesses should be owned by the workers.
Communism: - ✔✔The idea that businesses should be owned by the government.
Capitalism: - ✔✔The idea that businesses should be owned by private individuals.
Invisible Hand: - ✔✔Forces that move the free market economy.
Mixed Economies: - ✔✔An economic system in which the government and private sector both
direct the economy.
Supply: - ✔✔The willingness to sell goods at various prices during a specified time.
Demand: - ✔✔The willingness to buy goods at various prices during a specified time.
Law of Demand: - ✔✔As price increases, the quantity demanded decreases.
, Law of Supply: - ✔✔As price increases, the quantity supplied increases.
Surplus: - ✔✔Too much supply.
Shortage: - ✔✔Not enough supply.
Market price: - ✔✔The price at which the quantity demanded equals the quantity supplied.
Economic Indicator: - ✔✔Used to predict the future movements of an economy.
Gross Domestic Product (GDP): - ✔✔An economic indicator showing the total value of
everything a country produces within a year.
Unemployment Rate: - ✔✔An economic indicator showing the percentage of the labor force
who are unemployed.
Labor Force: - ✔✔People 16 or older, working or seeking work.
Underemployment: - ✔✔People working part-time, who want to work full-time.
Inflation: - ✔✔An economic indicator showing the rise in prices over time.
Consumer Price Index (CPI): - ✔✔An economic indicator measuring the cost of a fixed basket of
goods and services over time.
Business Cycle: - ✔✔Describes fluctuations in economic activity, measured by changes in
economic indicators.
