Intro to Business (EXAM 1) with
Complete Solutions
Business - correct answer-Individuals or organizations who try to earn a profit by
providing products that satisfy people's needs.
Product - correct answer-A good or service with tangible and intangible characteristics
that provide satisfaction and benefits.
Profit - correct answer-The difference between what it costs to make and sell a product
and what a customer pays for it.
Nonprofit Organization - correct answer-Organizations that may provide goods or
services but do not have the fundamental purpose of earning profits.
Stakeholders - correct answer-Groups that have a stake in the success and outcomes
of a business.
Economics - correct answer-The study of how resources are distributed for the
production of goods and services within a social system.
Natural Resources - correct answer-Land, forests, minerals, water, and other things that
are not made by people.
Human Resources - correct answer-The physical and mental abilities that people use to
produce goods and services; also called labor.
Financial Resources - correct answer-The funds used to acquire the natural and human
resources needed to provide products; also called capital.
Economic System - correct answer-A description of how a particular society distributes
its resources to produce goods and services.
Communism - correct answer-A society in which the people, without regard to class,
own all the nation's resources.
Socialism - correct answer-An economic system in which the government owns and
operates basic industries but individuals own most businesses.
Capitalism (Free Enterprise) - correct answer-An economic system in which individuals
won and operate the majority of businesses that provide goods and services.
, Free-Market System - correct answer-Pure capitalism, in which individuals own and
operate the majority of businesses that provide goods and services.
Mixed Economies - correct answer-Economies made up of elements from more than
one economic system.
Demand - correct answer-The number of goods and services that consumers are willing
to buy at different prices at specific times.
Supply - correct answer-The number of products-goods and services- that businesses
are willing to sell at different prices at specific times.
Equilibrium Price - correct answer-The price at which the number of products that
businesses are willing to supply equals the amount of products that consumers are
willing to buy at a specific point in time.
Competition - correct answer-The rivalry among businesses for consumers' dollars.
Pure Competition - correct answer-The market structure that exists when there are
many small businesses selling one standardized product.
Monopolistic Competition - correct answer-The market structure that exists when there
are fewer businesses than in a pure-competition environment and the differences
among the goods they sell are small.
Oligopoly - correct answer-The market structure that exists when there are very few
businesses selling a product.
Monopoly - correct answer-The market structure that exists when there is only one
business providing a product in a given market.
Economic Expansion - correct answer-The situation that occurs when an economy is
growing and people are spending more money; their purchases stimulate the production
of goods and services, which in turn stimulated employment.
Inflation - correct answer-A condition characterized by a continuing rise in prices
Economic Contraction - correct answer-A slowdown of the economy characterized by a
decline in spending and during which businesses cut back on production and lay off
workers.
Recession - correct answer-A decline in production, employment, and income.
Unemployment - correct answer-The condition in which a percentage of the population
wants to work but is unable to find jobs.
Complete Solutions
Business - correct answer-Individuals or organizations who try to earn a profit by
providing products that satisfy people's needs.
Product - correct answer-A good or service with tangible and intangible characteristics
that provide satisfaction and benefits.
Profit - correct answer-The difference between what it costs to make and sell a product
and what a customer pays for it.
Nonprofit Organization - correct answer-Organizations that may provide goods or
services but do not have the fundamental purpose of earning profits.
Stakeholders - correct answer-Groups that have a stake in the success and outcomes
of a business.
Economics - correct answer-The study of how resources are distributed for the
production of goods and services within a social system.
Natural Resources - correct answer-Land, forests, minerals, water, and other things that
are not made by people.
Human Resources - correct answer-The physical and mental abilities that people use to
produce goods and services; also called labor.
Financial Resources - correct answer-The funds used to acquire the natural and human
resources needed to provide products; also called capital.
Economic System - correct answer-A description of how a particular society distributes
its resources to produce goods and services.
Communism - correct answer-A society in which the people, without regard to class,
own all the nation's resources.
Socialism - correct answer-An economic system in which the government owns and
operates basic industries but individuals own most businesses.
Capitalism (Free Enterprise) - correct answer-An economic system in which individuals
won and operate the majority of businesses that provide goods and services.
, Free-Market System - correct answer-Pure capitalism, in which individuals own and
operate the majority of businesses that provide goods and services.
Mixed Economies - correct answer-Economies made up of elements from more than
one economic system.
Demand - correct answer-The number of goods and services that consumers are willing
to buy at different prices at specific times.
Supply - correct answer-The number of products-goods and services- that businesses
are willing to sell at different prices at specific times.
Equilibrium Price - correct answer-The price at which the number of products that
businesses are willing to supply equals the amount of products that consumers are
willing to buy at a specific point in time.
Competition - correct answer-The rivalry among businesses for consumers' dollars.
Pure Competition - correct answer-The market structure that exists when there are
many small businesses selling one standardized product.
Monopolistic Competition - correct answer-The market structure that exists when there
are fewer businesses than in a pure-competition environment and the differences
among the goods they sell are small.
Oligopoly - correct answer-The market structure that exists when there are very few
businesses selling a product.
Monopoly - correct answer-The market structure that exists when there is only one
business providing a product in a given market.
Economic Expansion - correct answer-The situation that occurs when an economy is
growing and people are spending more money; their purchases stimulate the production
of goods and services, which in turn stimulated employment.
Inflation - correct answer-A condition characterized by a continuing rise in prices
Economic Contraction - correct answer-A slowdown of the economy characterized by a
decline in spending and during which businesses cut back on production and lay off
workers.
Recession - correct answer-A decline in production, employment, and income.
Unemployment - correct answer-The condition in which a percentage of the population
wants to work but is unable to find jobs.
