INTRO TO BUSINESS EXAM 1 STUDY GUIDE QUESTIONS AND
ANSWERS
What is the reward of taking risks? - CORRECT ANSWER✅✅Profit
What are the two types of economics? - CORRECT ANSWER✅✅macroeconomics and microeconomics
What is macroeconomics? - CORRECT ANSWER✅✅Economics in a nation
What is microeconomics? - CORRECT ANSWER✅✅Economics in firms and businesses
Three types of economies - CORRECT ANSWER✅✅Capitalism, Socialism, Communism
These are factors affecting which curve?
Income
Quality
Price of substitute/complementary goods
Promotion
Future expectations - CORRECT ANSWER✅✅Demand Curve
These are factors affecting which curve?
Resources
Cost to produce
Taxes - CORRECT ANSWER✅✅Supply Curve
What is pure competition? How do they compete? - CORRECT ANSWER✅✅large number of suppliers
and a large number of buyers. Compete by lowering prices
What monopolistic competition? Do they have to compete on price? - CORRECT ANSWER✅✅Products
compete by being different. No
, What is an Oligopoly - CORRECT ANSWER✅✅Not a lot of suppliers, but a lot of buyers.
What is a Monopoly? - CORRECT ANSWER✅✅One supplier and large amount of buyers
What is a Monopsony? - CORRECT ANSWER✅✅A lot of suppliers but only 1 buyer.
How do we measure the economy? - CORRECT ANSWER✅✅GDP
What does GDP stand for? - CORRECT ANSWER✅✅Gross Domestic Product
What is it called if the GDP goes down for 1 year or 2 terms? - CORRECT ANSWER✅✅Recession
Define unemployment - CORRECT ANSWER✅✅Percent of people out fo work and actively looking for a
job.
What are the four types of unemployment? - CORRECT ANSWER✅✅Cyclical, Frictional, Seasonal,
Structural
What is cyclical unemployment? - CORRECT ANSWER✅✅Unemployment that happens when stores
close down.
What is frictional unemployment - CORRECT ANSWER✅✅Unemployment that happens because it takes
time to find a job. For example someone who just graduated college.
What is seasonal unemployment? - CORRECT ANSWER✅✅Unemployment that happens because the
season doesn't support the job. For example lifeguards.
What is structural unemployment? - CORRECT ANSWER✅✅Unemployment that happens because you
don't have the skills required to do the job.
ANSWERS
What is the reward of taking risks? - CORRECT ANSWER✅✅Profit
What are the two types of economics? - CORRECT ANSWER✅✅macroeconomics and microeconomics
What is macroeconomics? - CORRECT ANSWER✅✅Economics in a nation
What is microeconomics? - CORRECT ANSWER✅✅Economics in firms and businesses
Three types of economies - CORRECT ANSWER✅✅Capitalism, Socialism, Communism
These are factors affecting which curve?
Income
Quality
Price of substitute/complementary goods
Promotion
Future expectations - CORRECT ANSWER✅✅Demand Curve
These are factors affecting which curve?
Resources
Cost to produce
Taxes - CORRECT ANSWER✅✅Supply Curve
What is pure competition? How do they compete? - CORRECT ANSWER✅✅large number of suppliers
and a large number of buyers. Compete by lowering prices
What monopolistic competition? Do they have to compete on price? - CORRECT ANSWER✅✅Products
compete by being different. No
, What is an Oligopoly - CORRECT ANSWER✅✅Not a lot of suppliers, but a lot of buyers.
What is a Monopoly? - CORRECT ANSWER✅✅One supplier and large amount of buyers
What is a Monopsony? - CORRECT ANSWER✅✅A lot of suppliers but only 1 buyer.
How do we measure the economy? - CORRECT ANSWER✅✅GDP
What does GDP stand for? - CORRECT ANSWER✅✅Gross Domestic Product
What is it called if the GDP goes down for 1 year or 2 terms? - CORRECT ANSWER✅✅Recession
Define unemployment - CORRECT ANSWER✅✅Percent of people out fo work and actively looking for a
job.
What are the four types of unemployment? - CORRECT ANSWER✅✅Cyclical, Frictional, Seasonal,
Structural
What is cyclical unemployment? - CORRECT ANSWER✅✅Unemployment that happens when stores
close down.
What is frictional unemployment - CORRECT ANSWER✅✅Unemployment that happens because it takes
time to find a job. For example someone who just graduated college.
What is seasonal unemployment? - CORRECT ANSWER✅✅Unemployment that happens because the
season doesn't support the job. For example lifeguards.
What is structural unemployment? - CORRECT ANSWER✅✅Unemployment that happens because you
don't have the skills required to do the job.
