Business Administration Exam
questions and answers graded A+
Business - ANS✅✅any activity that seeks to provide goods and services to others while operating
at a profit
Factors of production - ANS✅✅land, labor, capital, entrepreneurship, knowledge
Business Challenges - ANS✅✅competition, aging population, illegal acts, business safety,
technology
Capitalism - ANS✅✅-Free market system or market economy
-Own and operate a business
-Freedom to enter and leave the market
-creates competition
Communism - ANS✅✅-type of command economy
- emphasis on production of goods and services and government needs
-government owns and operates almost all economic resources
Socialism - ANS✅✅-mixed economy
-aims at equitable distribution of income to reduce poverty
-Government owns and operates key industries
-Individuals allowed to own smaller businesses
profit - ANS✅✅The amount of money left over after expenses
Scarcity - ANS✅✅Limited quantities of resources to meet unlimited wants
opportunity cost - ANS✅✅what you give up when you make a choice
, Price - ANS✅✅monetary value of a product as established by supply and demand
supply - ANS✅✅Quantity sellers are willing to sell at various prices
positive relationship - ANS✅✅Supply has a___________ relationship because as price goes up the
quantity sellers are willing to produce and sell also goes up
demand - ANS✅✅the quantity of a good or service that consumers are willing and able to buy at
various prices
Oligopoly - ANS✅✅few sellers that tend to dominate the market
perfect competition - ANS✅✅Many different suppliers of the product, prevents any one of them
from setting prices
monopolistic competition - ANS✅✅Products are very similar but consumers perceive them as
being different
Monopoly - ANS✅✅This supplier is the sole provider of electricity to its local municipalities
Free Marker Economic system - ANS✅✅"price" determines how much of a product consumers
demand and how much producers are able to produce.
CPI (Consumer Price Index) - ANS✅✅Measures inflation and deflation. The market basket of goods
and services it measures
GDP - ANS✅✅the total market value of all final goods and services produced annually in an
economy
structural unemployment - ANS✅✅unemployment resulting from industrial reorganization,
typically due to technological change, rather than fluctuations in supply or demand.
frictional unemployment - ANS✅✅Unemployment from individuals quitting work
questions and answers graded A+
Business - ANS✅✅any activity that seeks to provide goods and services to others while operating
at a profit
Factors of production - ANS✅✅land, labor, capital, entrepreneurship, knowledge
Business Challenges - ANS✅✅competition, aging population, illegal acts, business safety,
technology
Capitalism - ANS✅✅-Free market system or market economy
-Own and operate a business
-Freedom to enter and leave the market
-creates competition
Communism - ANS✅✅-type of command economy
- emphasis on production of goods and services and government needs
-government owns and operates almost all economic resources
Socialism - ANS✅✅-mixed economy
-aims at equitable distribution of income to reduce poverty
-Government owns and operates key industries
-Individuals allowed to own smaller businesses
profit - ANS✅✅The amount of money left over after expenses
Scarcity - ANS✅✅Limited quantities of resources to meet unlimited wants
opportunity cost - ANS✅✅what you give up when you make a choice
, Price - ANS✅✅monetary value of a product as established by supply and demand
supply - ANS✅✅Quantity sellers are willing to sell at various prices
positive relationship - ANS✅✅Supply has a___________ relationship because as price goes up the
quantity sellers are willing to produce and sell also goes up
demand - ANS✅✅the quantity of a good or service that consumers are willing and able to buy at
various prices
Oligopoly - ANS✅✅few sellers that tend to dominate the market
perfect competition - ANS✅✅Many different suppliers of the product, prevents any one of them
from setting prices
monopolistic competition - ANS✅✅Products are very similar but consumers perceive them as
being different
Monopoly - ANS✅✅This supplier is the sole provider of electricity to its local municipalities
Free Marker Economic system - ANS✅✅"price" determines how much of a product consumers
demand and how much producers are able to produce.
CPI (Consumer Price Index) - ANS✅✅Measures inflation and deflation. The market basket of goods
and services it measures
GDP - ANS✅✅the total market value of all final goods and services produced annually in an
economy
structural unemployment - ANS✅✅unemployment resulting from industrial reorganization,
typically due to technological change, rather than fluctuations in supply or demand.
frictional unemployment - ANS✅✅Unemployment from individuals quitting work
