BUS X100 Final Exam Study Guide – Introduction to Business – 2026 – Study and
Practice Guide
Define business - correct answer ✔✔ Provides good and services to others while operating at a
profit
Why study business - correct answer ✔✔ Become better informed
avoid making crucial mistakes (most businesses fail within 10 years)
become a better investor and consumer
benefit society (business is 90% of the US economy)
Microeconomics - correct answer ✔✔ Part of economics concerned with single factors and
effects of individual decisions
Macroeconomics - correct answer ✔✔ concerned with large-scale or general economic factors,
interest rates, and national productivity
Economy - correct answer ✔✔ Wealth and resources of a country or region (jobs and money)
Capitalist - correct answer ✔✔ Individuals own and operate the majority of business
Free market - correct answer ✔✔ products are sold individually
Mixed economy - correct answer ✔✔ A mix of socialism and capitalism ex. US
,Socialist economy - correct answer ✔✔ Most goods are offered by the government, some
private sector
Communist economy - correct answer ✔✔ Government makes all decisions and own all
business ex. North Korea
Supply and demand curves - correct answer ✔✔ Defines how much of a good is available and
wanted
Equilibrium point (market price) - correct answer ✔✔ Quantity demanded is equal to quantity
supplied
Business cycle - correct answer ✔✔ A cycle or series of cycles of economic expansion and
contraction
Gross domestic product (GDP) - correct answer ✔✔ Total value of goods and services produced
by all people within the boundaries of a country during a one year period
Unemployment rate - correct answer ✔✔ The percentage at which people are unemployed
Inflation - correct answer ✔✔ Increase in prices and fall in purchase value
Deflation - correct answer ✔✔ Decrease in prices and upgrade in value of money
Consumer price index - correct answer ✔✔ An index of the variation in prices paid by typical
consumers for retail goods and other items
, Producer price index - correct answer ✔✔ Index of prices measured at wholesale or producer
level
Ethics - correct answer ✔✔ Study of right and wrong and the morality of the choices that
individuals make
Business ethics - correct answer ✔✔ Application of moral standards and judgement of right and
wrong of a business
Stakeholders - correct answer ✔✔ Do not own stocks but are interested in the business ex. you
really like Apple and buy their products so that makes you a stakeholder
Three components of business ethics - correct answer ✔✔ avoiding conflict of interest
competing fairly and honestly
being transparent
Three factors that affect ethical behavior - correct answer ✔✔ Individual (personal values)
Social (cultural norms, behaviors of others)
Opportunity (freedom to act as influenced by laws, standards, etc.)
Consumer bill of rights - correct answer ✔✔ Safe use of products
Be informed
Choose
Practice Guide
Define business - correct answer ✔✔ Provides good and services to others while operating at a
profit
Why study business - correct answer ✔✔ Become better informed
avoid making crucial mistakes (most businesses fail within 10 years)
become a better investor and consumer
benefit society (business is 90% of the US economy)
Microeconomics - correct answer ✔✔ Part of economics concerned with single factors and
effects of individual decisions
Macroeconomics - correct answer ✔✔ concerned with large-scale or general economic factors,
interest rates, and national productivity
Economy - correct answer ✔✔ Wealth and resources of a country or region (jobs and money)
Capitalist - correct answer ✔✔ Individuals own and operate the majority of business
Free market - correct answer ✔✔ products are sold individually
Mixed economy - correct answer ✔✔ A mix of socialism and capitalism ex. US
,Socialist economy - correct answer ✔✔ Most goods are offered by the government, some
private sector
Communist economy - correct answer ✔✔ Government makes all decisions and own all
business ex. North Korea
Supply and demand curves - correct answer ✔✔ Defines how much of a good is available and
wanted
Equilibrium point (market price) - correct answer ✔✔ Quantity demanded is equal to quantity
supplied
Business cycle - correct answer ✔✔ A cycle or series of cycles of economic expansion and
contraction
Gross domestic product (GDP) - correct answer ✔✔ Total value of goods and services produced
by all people within the boundaries of a country during a one year period
Unemployment rate - correct answer ✔✔ The percentage at which people are unemployed
Inflation - correct answer ✔✔ Increase in prices and fall in purchase value
Deflation - correct answer ✔✔ Decrease in prices and upgrade in value of money
Consumer price index - correct answer ✔✔ An index of the variation in prices paid by typical
consumers for retail goods and other items
, Producer price index - correct answer ✔✔ Index of prices measured at wholesale or producer
level
Ethics - correct answer ✔✔ Study of right and wrong and the morality of the choices that
individuals make
Business ethics - correct answer ✔✔ Application of moral standards and judgement of right and
wrong of a business
Stakeholders - correct answer ✔✔ Do not own stocks but are interested in the business ex. you
really like Apple and buy their products so that makes you a stakeholder
Three components of business ethics - correct answer ✔✔ avoiding conflict of interest
competing fairly and honestly
being transparent
Three factors that affect ethical behavior - correct answer ✔✔ Individual (personal values)
Social (cultural norms, behaviors of others)
Opportunity (freedom to act as influenced by laws, standards, etc.)
Consumer bill of rights - correct answer ✔✔ Safe use of products
Be informed
Choose
