FDM Unit 1 Exam Questions With Correct Answers.

FDM Unit 1 Exam Questions With Correct Answers. Absolute advantage - answerWhen a country can produce goods more efficiently and at a lower cost than another country acceptance - answerElement of a contract stating that all parties involved must agree to the terms of contract antitrust laws - answerUS laws that promote fair trade and competition among businesses balance of payments - answerTotal amount of money that comes into a country, minus the total amount of money that goes out for a specific period of time balance of trade - answerDifference between a nation's exports and its imports board of directors - answerGroup of individuals who make high-level management decisions for a business and establish company policies bond - answerA certificate of debt issued by an organization or government breach of contract - answerWhen one or more parties do not follow the agreed terms of a contract without having a legitimate reason business - answerTerm for all the activities involved in developing and exchanging products business cycle - answerAlternating periods of expansion and contraction in the economy business market - answerConsists of customers who buy products for use in a business business-to-business (B2B) - answerBusiness that sells primarily to other businesses business-to-consumer (B2C) - answerBusiness that sells primarily to individual consumers buying signals - answerVerbal or nonverbal signs that a customer is ready to purchase capacity - answerA person is legally able to enter into a binding agreement capital - answerAll the tools, equipment, and machinery used to produce goods or provide services EXAM STUDY MATERIALS July 29, 2024 12:59 PM capital goods - answerProducts businesses use to produce other goods capitalism - answerAn economic system where the economic resources are privately owned by individuals rather than the government code of conduct - answerHandbook that outlines expectations of employee behavior code of ethics - answerDocument that dictates how business should be conducted collusion - answerWhen two or more businesses work together to remove their competition, set prices, and control distribution command economy - answerAn economy in which the government makes all the economic decisions for its citizens commerce - answerThe activities involved in buying and selling goods on a large scale comparative advantage - answerWhen a country specializes in producing a product at which it is relatively more efficient competition - answerActions taken by two or more businesses attempting to attract the same customers confidentiality - answerSpecific information about a company or its employees is never shared, except with those who have clearance to receive it consideration - answerElement of a contract stating that something of value must be promised in return consumer - answerCustomers who purchase goods and services for their own use Consumer Bill of Rights - answerBasic expectations of fair treatment of consumers consumer market - answerConsists of customers who buy products for their own use consumer price index (CPI) - answerMeasure of the average change in the prices paid by consumers for typical consumer goods and services over time contract - answerLegally binding agreement between two or more people or businesses contract law - answerRegulates how contracts are written, executed, and enforced cooperative - answerBusiness that is owned and operated by those using its services; also called а со-ор corporate culture - answerHow the ow