BMGT110F FINAL EXAM QUESTIONS
AND ANSWERS. VERIFIED 2026.
Gross Domestic Product (GDP) - ANS the total market value of all final goods and services
produced annually in an economy
GDP Formula - ANS private consumption + government expenditures + public & private
investments + (exports - imports)
Inflation - ANS a general rise in the prices of goods and services over time
Deflation - ANS A situation in which prices are declining
Consumer Price Index (CPI) - ANS monthly statistics that measure the pace of inflation or
deflation
Fiscal policy - ANS The federal government's efforts to keep the economy stable by increasing
or decreasing taxes or government spending
Tools of fiscal policy - ANS Government spending and taxation
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Monetary policy - ANS The management of the money supply and interest rates by the
Federal Reserve Bank
Supply Curve Definition - ANS A graph of the quantity supplied of a good at different prices
Shape of Supply Curve - ANS As price increases, quantity increases
Demand Curve Definition - ANS A graph of the quantity demanded of a good at different
prices
Shape of Demand Curve - ANS As price increases, quantity decreases
The Equilibrium Point - ANS the point at which quantity supplied equals quantity demanded
Willingness to Pay (WTP) - ANS the maximum amount that a buyer will pay for a good
Willingness to Produce - ANS the minimum amount that a seller will sell a good for
Revenue - ANS The total amount of money a business takes in during a given period by selling
goods and services
Cost of Goods Sold (COGS) - ANS a measure of the cost of merchandise sold or cost of raw
materials and supplies used for producing items for resale
Gross Profit - ANS How much the firm earned by buying or selling merchandise
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Operating Expenses - ANS Cost incurred in operating a business
Net income - ANS Profit or loss over a specific period after subtracting all costs and expenses,
including taxes
Value - ANS The battle between Willingness to Pay and Willingness to Produce
Ethics - ANS standards of moral behavior, that is, behavior accepted by society as right versus
wrong
Gut check question 1 - ANS Is my proposed action legal?
Gut check question 2 - ANS Is it balanced?
Gut check question 3 - ANS How will it make me feel about myself?
Legal - ANS following the law
Ethical - ANS Doing what is morally right and fair
Command - ANS Leader makes decisions and gives direct orders
Control - ANS Leader monitors and enforces rules and performance
Consensus Building - ANS leader involves others in discussion to reach shared agreement and
buy-in
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS. VERIFIED 2026.
Gross Domestic Product (GDP) - ANS the total market value of all final goods and services
produced annually in an economy
GDP Formula - ANS private consumption + government expenditures + public & private
investments + (exports - imports)
Inflation - ANS a general rise in the prices of goods and services over time
Deflation - ANS A situation in which prices are declining
Consumer Price Index (CPI) - ANS monthly statistics that measure the pace of inflation or
deflation
Fiscal policy - ANS The federal government's efforts to keep the economy stable by increasing
or decreasing taxes or government spending
Tools of fiscal policy - ANS Government spending and taxation
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Monetary policy - ANS The management of the money supply and interest rates by the
Federal Reserve Bank
Supply Curve Definition - ANS A graph of the quantity supplied of a good at different prices
Shape of Supply Curve - ANS As price increases, quantity increases
Demand Curve Definition - ANS A graph of the quantity demanded of a good at different
prices
Shape of Demand Curve - ANS As price increases, quantity decreases
The Equilibrium Point - ANS the point at which quantity supplied equals quantity demanded
Willingness to Pay (WTP) - ANS the maximum amount that a buyer will pay for a good
Willingness to Produce - ANS the minimum amount that a seller will sell a good for
Revenue - ANS The total amount of money a business takes in during a given period by selling
goods and services
Cost of Goods Sold (COGS) - ANS a measure of the cost of merchandise sold or cost of raw
materials and supplies used for producing items for resale
Gross Profit - ANS How much the firm earned by buying or selling merchandise
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Operating Expenses - ANS Cost incurred in operating a business
Net income - ANS Profit or loss over a specific period after subtracting all costs and expenses,
including taxes
Value - ANS The battle between Willingness to Pay and Willingness to Produce
Ethics - ANS standards of moral behavior, that is, behavior accepted by society as right versus
wrong
Gut check question 1 - ANS Is my proposed action legal?
Gut check question 2 - ANS Is it balanced?
Gut check question 3 - ANS How will it make me feel about myself?
Legal - ANS following the law
Ethical - ANS Doing what is morally right and fair
Command - ANS Leader makes decisions and gives direct orders
Control - ANS Leader monitors and enforces rules and performance
Consensus Building - ANS leader involves others in discussion to reach shared agreement and
buy-in
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
