BUS 6600 FINAL EXAM | QUESTIONS AND ANSWERS | VERIFIED
AND WELL DETAILED ANSWERS | LATEST EXAM
5 FACTORS OF PRODUCTION
land, labor, capital, entrepreneurship, knowledge
GOVERNMENTS REDUCE THE RISKS OF ENTREPRENEURSHIP
allow private ownership
minimal tax
establish tradable currency
lessen corruption
Effectiveness
doing the right things
Efficiency
using resources in such a way as to maximize the production of goods and
services
productivity
output per unit of input
Economics
the study of how society manages its scarce resources
Invisible Hand Theory
Adam Smith's theory that the actions of independent, self-interested buyers and
sellers will often result in the most efficient allocation of resources
Capitalism
An economic system based on private ownership of capital
4 basic rights of capitalism
1. The right to own private property
2. The right to own a business and keep all that business's profits
3. The right to freedom of competition
4. The right to freedom of choice
, free market
An economic system in which prices and wages are determined by unrestricted
competition between businesses, without government regulation or fear of
monopolies.
Socialism
A system in which society, usually in the form of the government, owns and
controls the means of production.
Comunism
Goverment system were everyone are equal and the goverment distributes
money evenly
mixed economy
An economy in which private enterprise exists in combination with a
considerable amount of government regulation and promotion.
Key Economic Indicators
GDP, unemployment rate, price indexes
4 phases of the business cycle
economic boom, recession, depression, recovery
fiscal policy
Government policy that attempts to manage the economy by controlling taxing
and spending.
monetary policy
managing the economy by altering the supply of money and interest rates
core inflation
CPI minus food and energy costs
Keynesian economics
Theory based on the principles of John Maynard Keynes, stating that
government spending should increase during business slumps and be curbed
during booms.
3 Ethics Questions
AND WELL DETAILED ANSWERS | LATEST EXAM
5 FACTORS OF PRODUCTION
land, labor, capital, entrepreneurship, knowledge
GOVERNMENTS REDUCE THE RISKS OF ENTREPRENEURSHIP
allow private ownership
minimal tax
establish tradable currency
lessen corruption
Effectiveness
doing the right things
Efficiency
using resources in such a way as to maximize the production of goods and
services
productivity
output per unit of input
Economics
the study of how society manages its scarce resources
Invisible Hand Theory
Adam Smith's theory that the actions of independent, self-interested buyers and
sellers will often result in the most efficient allocation of resources
Capitalism
An economic system based on private ownership of capital
4 basic rights of capitalism
1. The right to own private property
2. The right to own a business and keep all that business's profits
3. The right to freedom of competition
4. The right to freedom of choice
, free market
An economic system in which prices and wages are determined by unrestricted
competition between businesses, without government regulation or fear of
monopolies.
Socialism
A system in which society, usually in the form of the government, owns and
controls the means of production.
Comunism
Goverment system were everyone are equal and the goverment distributes
money evenly
mixed economy
An economy in which private enterprise exists in combination with a
considerable amount of government regulation and promotion.
Key Economic Indicators
GDP, unemployment rate, price indexes
4 phases of the business cycle
economic boom, recession, depression, recovery
fiscal policy
Government policy that attempts to manage the economy by controlling taxing
and spending.
monetary policy
managing the economy by altering the supply of money and interest rates
core inflation
CPI minus food and energy costs
Keynesian economics
Theory based on the principles of John Maynard Keynes, stating that
government spending should increase during business slumps and be curbed
during booms.
3 Ethics Questions
