BUS 101 || 100% Error-free Solutions.
Business correct answers Organization that provides goods or services for profit
Profit correct answers differences between a business's revenues and its expenses
External Environment correct answers everything outside an organization's boundaries that
might affect it
Economic System correct answers a nation's system for allocating its resources among citizens
Factors of production correct answers resources used in the production of goods and services-
labor, capital, entrepreneurs, physical resources and information resources
Labor (human resources) correct answers physical and mental capabilities of people as they
contribute to economic production
Capital correct answers funds needed to create and operate a business enterprise
Entrepreneur correct answers individual who accepts the risks and opportunities involved in
creating and operating a new business venture
Planned economy correct answers economy that relies on a centralized government to control all
or most factors of production and to make all or most production and allocation decisions
Communism correct answers political system in which the government owns and operates all
factors of production
Market economy correct answers economy in which individuals control production and
allocation decisions through supply and demand
Market correct answers mechanism for exchange between buyers and sellers of a particular good
or service
Capitalism correct answers system that sanctions the private ownership of the factors of
production and encourages entrepreneurship by offering profits as an incentive
Privatization correct answers process of converting government enterprises into privately owned
companies
Socialism correct answers planned economic system in which the government owns and operates
only selected major sources of production
Demand correct answers the willingness and ability of buyers to purchase a good or service
Supply correct answers the willingness and ability of producers to offer a good or service for sale
, Private enterprise correct answers economic system that allows individuals to pursue their own
interests without undue governmental restriction
Competition correct answers vying among businesses for the same resources or customers
Perfect competition correct answers market or industry characterized by numerous small firms
producing an identical product
Monopolistic competition correct answers market or industry characterized by numerous buyers
and relatively numerous sellers trying to differentiate their products from those of competitors
Monopoly correct answers market or industry in which there is only one producer that can
therefore set the prices on all of its products
Natural monopoly correct answers industry in which one company can most efficiently supply
all needed goods or services
Standard of living correct answers the total quantity and quality of goods and services people can
purchase with the currency used in their economic system
Gross Domestic Product (GDP) correct answers total value of all goods and services produced
within a given period by a national economy through domestic factors of production
Gross National Product (GNP) correct answers total value of all goods and services produced by
a national economy within a given period regardless of where the factors of production are
located
Real GDP correct answers gross domestic product (GDP) adjusted to account for changes in
currency values and price changes
Purchasing Power Party correct answers the principal that exchange rates are set so that the
prices of similar products in different countries are about the same
Inflation correct answers occurs when widespread price increases occur throughout an economic
system
Unemployment correct answers the level of joblessness among people actively seeking work in
an economic system
Recession correct answers a period during which aggregate output, as measured by GDP,
declines
Depression correct answers a prolonged and deep recession
Business correct answers Organization that provides goods or services for profit
Profit correct answers differences between a business's revenues and its expenses
External Environment correct answers everything outside an organization's boundaries that
might affect it
Economic System correct answers a nation's system for allocating its resources among citizens
Factors of production correct answers resources used in the production of goods and services-
labor, capital, entrepreneurs, physical resources and information resources
Labor (human resources) correct answers physical and mental capabilities of people as they
contribute to economic production
Capital correct answers funds needed to create and operate a business enterprise
Entrepreneur correct answers individual who accepts the risks and opportunities involved in
creating and operating a new business venture
Planned economy correct answers economy that relies on a centralized government to control all
or most factors of production and to make all or most production and allocation decisions
Communism correct answers political system in which the government owns and operates all
factors of production
Market economy correct answers economy in which individuals control production and
allocation decisions through supply and demand
Market correct answers mechanism for exchange between buyers and sellers of a particular good
or service
Capitalism correct answers system that sanctions the private ownership of the factors of
production and encourages entrepreneurship by offering profits as an incentive
Privatization correct answers process of converting government enterprises into privately owned
companies
Socialism correct answers planned economic system in which the government owns and operates
only selected major sources of production
Demand correct answers the willingness and ability of buyers to purchase a good or service
Supply correct answers the willingness and ability of producers to offer a good or service for sale
, Private enterprise correct answers economic system that allows individuals to pursue their own
interests without undue governmental restriction
Competition correct answers vying among businesses for the same resources or customers
Perfect competition correct answers market or industry characterized by numerous small firms
producing an identical product
Monopolistic competition correct answers market or industry characterized by numerous buyers
and relatively numerous sellers trying to differentiate their products from those of competitors
Monopoly correct answers market or industry in which there is only one producer that can
therefore set the prices on all of its products
Natural monopoly correct answers industry in which one company can most efficiently supply
all needed goods or services
Standard of living correct answers the total quantity and quality of goods and services people can
purchase with the currency used in their economic system
Gross Domestic Product (GDP) correct answers total value of all goods and services produced
within a given period by a national economy through domestic factors of production
Gross National Product (GNP) correct answers total value of all goods and services produced by
a national economy within a given period regardless of where the factors of production are
located
Real GDP correct answers gross domestic product (GDP) adjusted to account for changes in
currency values and price changes
Purchasing Power Party correct answers the principal that exchange rates are set so that the
prices of similar products in different countries are about the same
Inflation correct answers occurs when widespread price increases occur throughout an economic
system
Unemployment correct answers the level of joblessness among people actively seeking work in
an economic system
Recession correct answers a period during which aggregate output, as measured by GDP,
declines
Depression correct answers a prolonged and deep recession
