BUS 201 SFU CHAPTER 2 QUESTIONS WITH ACCURATE
ANSWERS
Balance of Trade correct answer the difference between a country's total exports
and total imports
Bargaining power of buyers correct answer If there are few buyers, they have
more bargaining power
Bargaining power of Suppliers correct answer if little suppliers, they have more
bargaining power
power of supplier also depends on number of substitutes
Budget deficit correct answer Spend more money than it took in
CPI correct answer consumer price index
measure changes in cost of a "basket" of goods that a typical family would buy
cyclical unemployment correct answer unemployment that rises during economic
downturns and falls when the economy improves
Define external environment correct answer everything outside an organization's
boundaries that might affect it
Deflation correct answer a decrease in the general level of prices
During high employment, will consumers buy more or less correct answer More
, During high unemployment, will consumers buy more or less correct answer Less
Explain the threat of new entrants correct answer if it is easy to enter market,
then competition is high
if it is capital-heavy, it is hard to enter market
Explain the threat of substitutes correct answer if there is more substitutes, there
is more competition
fiscal policy correct answer collecting and spending government revenue
frictional unemployment correct answer unemployment that occurs when people
take time to find a job
GDP/capita correct answer GDP divided by the total population
Give an example of a company that practices responsible business behavior
correct answer MEC
give some examples of rivalry amongst competitors correct answer price
competition
advertising campaigns
emphasis on customer service
Inflation correct answer widespread general increase in prices
ANSWERS
Balance of Trade correct answer the difference between a country's total exports
and total imports
Bargaining power of buyers correct answer If there are few buyers, they have
more bargaining power
Bargaining power of Suppliers correct answer if little suppliers, they have more
bargaining power
power of supplier also depends on number of substitutes
Budget deficit correct answer Spend more money than it took in
CPI correct answer consumer price index
measure changes in cost of a "basket" of goods that a typical family would buy
cyclical unemployment correct answer unemployment that rises during economic
downturns and falls when the economy improves
Define external environment correct answer everything outside an organization's
boundaries that might affect it
Deflation correct answer a decrease in the general level of prices
During high employment, will consumers buy more or less correct answer More
, During high unemployment, will consumers buy more or less correct answer Less
Explain the threat of new entrants correct answer if it is easy to enter market,
then competition is high
if it is capital-heavy, it is hard to enter market
Explain the threat of substitutes correct answer if there is more substitutes, there
is more competition
fiscal policy correct answer collecting and spending government revenue
frictional unemployment correct answer unemployment that occurs when people
take time to find a job
GDP/capita correct answer GDP divided by the total population
Give an example of a company that practices responsible business behavior
correct answer MEC
give some examples of rivalry amongst competitors correct answer price
competition
advertising campaigns
emphasis on customer service
Inflation correct answer widespread general increase in prices
