BUS 110 CHAPTERS 1-4 QUESTIONS WITH ACCURATE
ANSWERS
Absolute Advantage correct answer The benefit a country has in a given industry
when it can produce more of a product than other nations using the same
amount of resources
Balance of Payments correct answer A measure of the total flow of money into or
out of a country
Balance of Payments Deficit correct answer Shortfall that occurs when more
money flows out of a nation than into that nation
Balance of Payments Surplus correct answer Overage that occurs when more
money flows into a nation than out of that nation
Balance of Trade correct answer A basic measure of the difference in value
between a nations exports and imports, including both goods and services
Bleeding Edge Firms correct answer They launch products that fail because they
are too far ahead of the market.
Budget Deficit correct answer Shortfall that occurs when expenses are higher than
revenue over a given period of time
Budget Surplus correct answer Overage that occurs when revenue is higher than
expenses over a given period of time
,Business correct answer Any organization or activity that provides goods and
services in an effort to earn a profit
Business Cycle correct answer The periodic contraction and expansion that occur
over time in virtually every economy
Business Environmen correct answer The setting in which business operates. The
five key components are economic environment, competitive environment,
technological environment, social environment, and global environment.
Business Ethics correct answer The application of right and wrong, good and bad,
in a business setting
Business Technology correct answer Any tools - especially computers,
telecommunications, and other digital products - that businesses can use to
become more efficient and effective.
Capital correct answer Includes machines, tools, buildings, information, and
technology - the synthetic resources that a business needs to produce goods or
services.
Capitalism correct answer An economic system - AKA the private enterprise or
free market system - based on private ownership, economic freedom, and fair
competition.
Carbon Footprint correct answer Refers to the amount of harmful greenhouse
gases that a firm emits throughout its operations both directly and indirectly
, Code of Ethics correct answer A formal, written document that defines the ethical
standards of an organization and gives employees the information they need to
make ethical decisions across a range of situations
Commercial Banks correct answer Privately owned financial institutions that
accept demand deposits and make loans and provide other services for the public
Common Market correct answer A group of countries that have eliminated tariffs
and harmonized trading rules to facilitate the free flow of goods among the
member nations
Communism correct answer An economic and political system that calls for public
ownership of virtually all enterprises, under direction of a strong central
government
Comparative Advantage correct answer The benefit a country has in a given
industry if it can make products at a lower opportunity cost than other countries
Consumer Price Index (CPI) correct answer A measure of inflation that evaluates
the change int he weighted-average price of goods and services that average
consumer buys each month
Consumerism correct answer A social movement that focuses on four key
consumer rights: the right to be sage, the right to be informed, the right to
choose, and the right to be heard
Contraction correct answer A period of economic downturn, marked by rising
unemployment and falling business production.
ANSWERS
Absolute Advantage correct answer The benefit a country has in a given industry
when it can produce more of a product than other nations using the same
amount of resources
Balance of Payments correct answer A measure of the total flow of money into or
out of a country
Balance of Payments Deficit correct answer Shortfall that occurs when more
money flows out of a nation than into that nation
Balance of Payments Surplus correct answer Overage that occurs when more
money flows into a nation than out of that nation
Balance of Trade correct answer A basic measure of the difference in value
between a nations exports and imports, including both goods and services
Bleeding Edge Firms correct answer They launch products that fail because they
are too far ahead of the market.
Budget Deficit correct answer Shortfall that occurs when expenses are higher than
revenue over a given period of time
Budget Surplus correct answer Overage that occurs when revenue is higher than
expenses over a given period of time
,Business correct answer Any organization or activity that provides goods and
services in an effort to earn a profit
Business Cycle correct answer The periodic contraction and expansion that occur
over time in virtually every economy
Business Environmen correct answer The setting in which business operates. The
five key components are economic environment, competitive environment,
technological environment, social environment, and global environment.
Business Ethics correct answer The application of right and wrong, good and bad,
in a business setting
Business Technology correct answer Any tools - especially computers,
telecommunications, and other digital products - that businesses can use to
become more efficient and effective.
Capital correct answer Includes machines, tools, buildings, information, and
technology - the synthetic resources that a business needs to produce goods or
services.
Capitalism correct answer An economic system - AKA the private enterprise or
free market system - based on private ownership, economic freedom, and fair
competition.
Carbon Footprint correct answer Refers to the amount of harmful greenhouse
gases that a firm emits throughout its operations both directly and indirectly
, Code of Ethics correct answer A formal, written document that defines the ethical
standards of an organization and gives employees the information they need to
make ethical decisions across a range of situations
Commercial Banks correct answer Privately owned financial institutions that
accept demand deposits and make loans and provide other services for the public
Common Market correct answer A group of countries that have eliminated tariffs
and harmonized trading rules to facilitate the free flow of goods among the
member nations
Communism correct answer An economic and political system that calls for public
ownership of virtually all enterprises, under direction of a strong central
government
Comparative Advantage correct answer The benefit a country has in a given
industry if it can make products at a lower opportunity cost than other countries
Consumer Price Index (CPI) correct answer A measure of inflation that evaluates
the change int he weighted-average price of goods and services that average
consumer buys each month
Consumerism correct answer A social movement that focuses on four key
consumer rights: the right to be sage, the right to be informed, the right to
choose, and the right to be heard
Contraction correct answer A period of economic downturn, marked by rising
unemployment and falling business production.
