Intro to Bus 201 1 SFU midterm questions
and answers with complete solutions
Economic System correct answer: The way in which a nation
allocates its resources among its citizens.
Factors of Production correct answer: Resources used to
produce goods and services.
4 factors: labour, capital, entrepreneurs and natural resources
Command Economy correct answer: An economic system in
which government controls all or most factors of production (eg.
socialism)
Market Economy correct answer: An economic system in which
individuals control all or most factors of production
Input Market correct answer: Firms buy resources that they
need in the production of goods and services.
Output Market correct answer: Firms supply goods and services
in response to demand on the part of the consumers.
Mixed Market Economy correct answer: An economic system
with elements of both a command and market economy. (most
popular)
,Privatization correct answer: The transfer of all activities from
governments to the private sector.
Nationalization correct answer: The transfer of actives from
private firms to the government.
Deregulation correct answer: A reduction in the number of laws
affecting business activity.
Trade Association correct answer: An organization dedicated to
promoting the interests and assisting the members of a particular
industry.
Law of Demand correct answer: The principle that buyers will
purchase more of a product as price drops.
Law of Supply correct answer: The principle that producers will
offer more of a product as the price rises.
Private Enterprise correct answer: An economic system
characterized by private property rights, freedom of
choice,profits and competition.
Perfect Competition correct answer: A market or industry
characterized by a very large number of small firms producing
an identical product so that none of the firms has any ability to
influence price.
Monopolistic Competition correct answer: A market or industry
characterized by a very large number of firms supplying
, products that are similar but distinctive enough from one another
to give firms some ability to influence price.
Oligopoly correct answer: A market or industry characterized
by a small number of very large firms that have the power to
influence the price of their product.
Monopoly correct answer: A market or industry with only one
producer, who can set the price of its product.
Organizational Boundary correct answer: Separates the
organization from its environment.
Business Cycle correct answer: Pattern of short term ups and
downs in the economy.
4 parts: Peak, recession, trough and recovery
Gross Domestic Product (GDP) correct answer: Total value of
all goods produces within a given period by a national economy.
Real GDP correct answer: GDP calculated to account for
changes in currency values and price changes.
Productivity correct answer: Measure of economic growth that
compares how much a system produces with the resources
needed to produce it.
Inflation correct answer: Price increases in the economy.
and answers with complete solutions
Economic System correct answer: The way in which a nation
allocates its resources among its citizens.
Factors of Production correct answer: Resources used to
produce goods and services.
4 factors: labour, capital, entrepreneurs and natural resources
Command Economy correct answer: An economic system in
which government controls all or most factors of production (eg.
socialism)
Market Economy correct answer: An economic system in which
individuals control all or most factors of production
Input Market correct answer: Firms buy resources that they
need in the production of goods and services.
Output Market correct answer: Firms supply goods and services
in response to demand on the part of the consumers.
Mixed Market Economy correct answer: An economic system
with elements of both a command and market economy. (most
popular)
,Privatization correct answer: The transfer of all activities from
governments to the private sector.
Nationalization correct answer: The transfer of actives from
private firms to the government.
Deregulation correct answer: A reduction in the number of laws
affecting business activity.
Trade Association correct answer: An organization dedicated to
promoting the interests and assisting the members of a particular
industry.
Law of Demand correct answer: The principle that buyers will
purchase more of a product as price drops.
Law of Supply correct answer: The principle that producers will
offer more of a product as the price rises.
Private Enterprise correct answer: An economic system
characterized by private property rights, freedom of
choice,profits and competition.
Perfect Competition correct answer: A market or industry
characterized by a very large number of small firms producing
an identical product so that none of the firms has any ability to
influence price.
Monopolistic Competition correct answer: A market or industry
characterized by a very large number of firms supplying
, products that are similar but distinctive enough from one another
to give firms some ability to influence price.
Oligopoly correct answer: A market or industry characterized
by a small number of very large firms that have the power to
influence the price of their product.
Monopoly correct answer: A market or industry with only one
producer, who can set the price of its product.
Organizational Boundary correct answer: Separates the
organization from its environment.
Business Cycle correct answer: Pattern of short term ups and
downs in the economy.
4 parts: Peak, recession, trough and recovery
Gross Domestic Product (GDP) correct answer: Total value of
all goods produces within a given period by a national economy.
Real GDP correct answer: GDP calculated to account for
changes in currency values and price changes.
Productivity correct answer: Measure of economic growth that
compares how much a system produces with the resources
needed to produce it.
Inflation correct answer: Price increases in the economy.
