BUS 6600 Final Exam Questions with correct
answers
Revenue - CORRECT ANSWER-✔✔✅Total amount of money a business takes in during a given period by
selling goods and services
Businesses are part of an economic system that helps CREATE A HIGHER STANDARD OF LIVING and
quality of life for everyone - CORRECT ANSWER-✔✔✅
Standard of living - CORRECT ANSWER-✔✔✅amount of goods and services people can buy with the money
they have
Quality of life - CORRECT ANSWER-✔✔✅The general well-being of a society in terms of its political freedom,
natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and
joy that other goods and services provide.
Social Entrepreneurs - CORRECT ANSWER-✔✔✅People who use business principles to start and manage
organizations that are not for profit and who help countries with their social issues
5 Factors of production to create wealth - CORRECT ANSWER-✔✔✅Land, Labor, Capital, Entrepreneurship,
Knowledge
Productivity - CORRECT ANSWER-✔✔✅the amount of output you generate given the amount of input
Databases allow store to carry fewer items and less inventory - CORRECT ANSWER-✔✔✅
Demography - CORRECT ANSWER-✔✔✅statistical study of the human population in regard to its size, density,
and other characteristics such as age, race, gender and income
Richest demographic group in the US - CORRECT ANSWER-✔✔✅65-74
Two important environmental changes in recent years have been the - CORRECT ANSWER-✔✔✅the growth of
global competition and increase of free trade
Rich countries are rich because of entrepreneurship and knowledge - CORRECT ANSWER-✔✔✅
In 2015 the UN adopted Sustainable Development Goals (SDGs) - CORRECT ANSWER-✔✔✅lists specific
targets for ending poverty and improving lives of the disadvantaged in the next 15 years
Gen Z- born after the mid-1990s - CORRECT ANSWER-✔✔✅Will soon be the largest group of consumers in
the world
The baby-boom generation (1946-1964) - CORRECT ANSWER-✔✔✅
Globalization - CORRECT ANSWER-✔✔✅World trade
Most farmers who lost their jobs in the 19th and 20th century went to work in factories - CORRECT ANSWER-
✔✔✅
Service Sector employs 85% of workers in the US - CORRECT ANSWER-✔✔✅
,Intellectual Capital - CORRECT ANSWER-✔✔✅employee knowledge and skills that can be used to create new
products, attract new customers, and increase profits
Economics - CORRECT ANSWER-✔✔✅the study of how society chooses to employ resources to produce
goods and services and distribute them for consumption among various competing groups and individuals
Macroeconomics - CORRECT ANSWER-✔✔✅part of the economic study that looks at the operation of a
nation's economy as a whole
Microeconomics - CORRECT ANSWER-✔✔✅part of the economic study that looks at the behavior of people
and the organizations in particular markets
Resource Development - CORRECT ANSWER-✔✔✅the study of how to increase resources and to create the
conditions that will make better use of those resources
English economist Thomas Malthus believed that population growth would outstrip resources - CORRECT
ANSWER-✔✔✅
Scottish economist Adam Smith envisioned creating more resources so that everyone could become wealthier -
CORRECT ANSWER-✔✔✅
1776 Smith wrote The Wealth of Nations - CORRECT ANSWER-✔✔✅outlining steps to create prosperity
Adam Smith is considered the Father of Modern Economics - CORRECT ANSWER-✔✔✅
The Invisible Hand - CORRECT ANSWER-✔✔✅the process that turns self-directed gain into social and
economic benefits for all
Free Market Capitalism has 4 basic rights - CORRECT ANSWER-✔✔✅private property, own a business,
freedom of competition, freedom of choice
Pres. Franklin Roosevelt added 4 more freedoms - CORRECT ANSWER-✔✔✅speech and expression, worship
in your own way, freedom from want, freedom from fear
equilibrium point - CORRECT ANSWER-✔✔✅the point at which quantity supplied equals quantity demanded
Perfect Competition - CORRECT ANSWER-✔✔✅the degree of competition in which there are many sellers in a
market and none is large enough to dictate the price of a product
monopolistic competition - CORRECT ANSWER-✔✔✅the degree of competition in which a large number of
sellers produce very similar products that buyers nevertheless perceive as different
Oligopoly - CORRECT ANSWER-✔✔✅A degree of competition in which just a few sellers dominate the market
monopoly - CORRECT ANSWER-✔✔✅a degree of competition in which only one seller controls the total
supply of a product or service, and sets the price
US laws prohibit the creation of monopolies but do permit approved monopolies in markets for public utilities -
CORRECT ANSWER-✔✔✅
Deregulation is meant to increase competition and decrease consumer prices - CORRECT ANSWER-✔✔✅
Socialism - CORRECT ANSWER-✔✔✅economic system in which government owns some factors of production
and has a role in determining what and how goods are produced (e.g. steel mills, coal mines and utilities)
, Brain Drain - CORRECT ANSWER-✔✔✅the loss of highly educated and skilled workers to other countries
Communism - CORRECT ANSWER-✔✔✅economic and political system in which the government makes
almost all economic decisions and owns almost all the major factors of production
North Korea and Cuba are suffering severe economic depression - CORRECT ANSWER-✔✔✅
Free market economies - CORRECT ANSWER-✔✔✅economic systems in which the MARKET largely
determines what goods and services get produced, who gets them, and how the economy grows
Command Economies - CORRECT ANSWER-✔✔✅economic systems in which the GOVERNMENT largely
decides what goods and services will be produced, who will get them, and how the economy will grow (socialism
& Communism)
Mixed Economies - CORRECT ANSWER-✔✔✅economic systems in which some allocation of resources is
made by the market and some by government (USA)
Gross Domestic Product (GDP) - CORRECT ANSWER-✔✔✅the total value of final goods and services
produced in a country in a given year
Gross Output (GO) - CORRECT ANSWER-✔✔✅measure of total sales volume at all stages of production
Unemployment Rate - CORRECT ANSWER-✔✔✅number of civilians at least 16 years old who are unemployed
and TRIED to find a job within the prior 4 weeks
4 types of unemployment - CORRECT ANSWER-✔✔✅frictional, structural, cyclical, seasonal
Disinflation - CORRECT ANSWER-✔✔✅situation in which prices increases are slowing (the inflation rate is
declining)
Stagflation - CORRECT ANSWER-✔✔✅A situation when the economy is slowing but prices are going up
anyhow.
Deflation - CORRECT ANSWER-✔✔✅situation in which prices are declining, occurring when countries
produce so many goods that people cannot afford to buy them all
Consumer Price Index (CPI) - CORRECT ANSWER-✔✔✅consists of MONTHLY statistics that measure the
pace of inflation or deflation
Core Inflation - CORRECT ANSWER-✔✔✅CPI minus food and energy costs
Producer Price Index (PPI) - CORRECT ANSWER-✔✔✅index that measures prices at the wholesale level
4 phases of business cycles - CORRECT ANSWER-✔✔✅economic boom, recession, depression, recovery
Recession - CORRECT ANSWER-✔✔✅2 or more consecutive quarters of decline in GDP
Depression - CORRECT ANSWER-✔✔✅severe recession usually accompanied by deflation
Fiscal policy - CORRECT ANSWER-✔✔✅Government policy that attempts to manage the economy by
controlling taxing and government spending.
Keynesian economic Theory - CORRECT ANSWER-✔✔✅The theory that a government policy of increasing
spending and cutting taxes could stimulate the economy in a recession.
answers
Revenue - CORRECT ANSWER-✔✔✅Total amount of money a business takes in during a given period by
selling goods and services
Businesses are part of an economic system that helps CREATE A HIGHER STANDARD OF LIVING and
quality of life for everyone - CORRECT ANSWER-✔✔✅
Standard of living - CORRECT ANSWER-✔✔✅amount of goods and services people can buy with the money
they have
Quality of life - CORRECT ANSWER-✔✔✅The general well-being of a society in terms of its political freedom,
natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and
joy that other goods and services provide.
Social Entrepreneurs - CORRECT ANSWER-✔✔✅People who use business principles to start and manage
organizations that are not for profit and who help countries with their social issues
5 Factors of production to create wealth - CORRECT ANSWER-✔✔✅Land, Labor, Capital, Entrepreneurship,
Knowledge
Productivity - CORRECT ANSWER-✔✔✅the amount of output you generate given the amount of input
Databases allow store to carry fewer items and less inventory - CORRECT ANSWER-✔✔✅
Demography - CORRECT ANSWER-✔✔✅statistical study of the human population in regard to its size, density,
and other characteristics such as age, race, gender and income
Richest demographic group in the US - CORRECT ANSWER-✔✔✅65-74
Two important environmental changes in recent years have been the - CORRECT ANSWER-✔✔✅the growth of
global competition and increase of free trade
Rich countries are rich because of entrepreneurship and knowledge - CORRECT ANSWER-✔✔✅
In 2015 the UN adopted Sustainable Development Goals (SDGs) - CORRECT ANSWER-✔✔✅lists specific
targets for ending poverty and improving lives of the disadvantaged in the next 15 years
Gen Z- born after the mid-1990s - CORRECT ANSWER-✔✔✅Will soon be the largest group of consumers in
the world
The baby-boom generation (1946-1964) - CORRECT ANSWER-✔✔✅
Globalization - CORRECT ANSWER-✔✔✅World trade
Most farmers who lost their jobs in the 19th and 20th century went to work in factories - CORRECT ANSWER-
✔✔✅
Service Sector employs 85% of workers in the US - CORRECT ANSWER-✔✔✅
,Intellectual Capital - CORRECT ANSWER-✔✔✅employee knowledge and skills that can be used to create new
products, attract new customers, and increase profits
Economics - CORRECT ANSWER-✔✔✅the study of how society chooses to employ resources to produce
goods and services and distribute them for consumption among various competing groups and individuals
Macroeconomics - CORRECT ANSWER-✔✔✅part of the economic study that looks at the operation of a
nation's economy as a whole
Microeconomics - CORRECT ANSWER-✔✔✅part of the economic study that looks at the behavior of people
and the organizations in particular markets
Resource Development - CORRECT ANSWER-✔✔✅the study of how to increase resources and to create the
conditions that will make better use of those resources
English economist Thomas Malthus believed that population growth would outstrip resources - CORRECT
ANSWER-✔✔✅
Scottish economist Adam Smith envisioned creating more resources so that everyone could become wealthier -
CORRECT ANSWER-✔✔✅
1776 Smith wrote The Wealth of Nations - CORRECT ANSWER-✔✔✅outlining steps to create prosperity
Adam Smith is considered the Father of Modern Economics - CORRECT ANSWER-✔✔✅
The Invisible Hand - CORRECT ANSWER-✔✔✅the process that turns self-directed gain into social and
economic benefits for all
Free Market Capitalism has 4 basic rights - CORRECT ANSWER-✔✔✅private property, own a business,
freedom of competition, freedom of choice
Pres. Franklin Roosevelt added 4 more freedoms - CORRECT ANSWER-✔✔✅speech and expression, worship
in your own way, freedom from want, freedom from fear
equilibrium point - CORRECT ANSWER-✔✔✅the point at which quantity supplied equals quantity demanded
Perfect Competition - CORRECT ANSWER-✔✔✅the degree of competition in which there are many sellers in a
market and none is large enough to dictate the price of a product
monopolistic competition - CORRECT ANSWER-✔✔✅the degree of competition in which a large number of
sellers produce very similar products that buyers nevertheless perceive as different
Oligopoly - CORRECT ANSWER-✔✔✅A degree of competition in which just a few sellers dominate the market
monopoly - CORRECT ANSWER-✔✔✅a degree of competition in which only one seller controls the total
supply of a product or service, and sets the price
US laws prohibit the creation of monopolies but do permit approved monopolies in markets for public utilities -
CORRECT ANSWER-✔✔✅
Deregulation is meant to increase competition and decrease consumer prices - CORRECT ANSWER-✔✔✅
Socialism - CORRECT ANSWER-✔✔✅economic system in which government owns some factors of production
and has a role in determining what and how goods are produced (e.g. steel mills, coal mines and utilities)
, Brain Drain - CORRECT ANSWER-✔✔✅the loss of highly educated and skilled workers to other countries
Communism - CORRECT ANSWER-✔✔✅economic and political system in which the government makes
almost all economic decisions and owns almost all the major factors of production
North Korea and Cuba are suffering severe economic depression - CORRECT ANSWER-✔✔✅
Free market economies - CORRECT ANSWER-✔✔✅economic systems in which the MARKET largely
determines what goods and services get produced, who gets them, and how the economy grows
Command Economies - CORRECT ANSWER-✔✔✅economic systems in which the GOVERNMENT largely
decides what goods and services will be produced, who will get them, and how the economy will grow (socialism
& Communism)
Mixed Economies - CORRECT ANSWER-✔✔✅economic systems in which some allocation of resources is
made by the market and some by government (USA)
Gross Domestic Product (GDP) - CORRECT ANSWER-✔✔✅the total value of final goods and services
produced in a country in a given year
Gross Output (GO) - CORRECT ANSWER-✔✔✅measure of total sales volume at all stages of production
Unemployment Rate - CORRECT ANSWER-✔✔✅number of civilians at least 16 years old who are unemployed
and TRIED to find a job within the prior 4 weeks
4 types of unemployment - CORRECT ANSWER-✔✔✅frictional, structural, cyclical, seasonal
Disinflation - CORRECT ANSWER-✔✔✅situation in which prices increases are slowing (the inflation rate is
declining)
Stagflation - CORRECT ANSWER-✔✔✅A situation when the economy is slowing but prices are going up
anyhow.
Deflation - CORRECT ANSWER-✔✔✅situation in which prices are declining, occurring when countries
produce so many goods that people cannot afford to buy them all
Consumer Price Index (CPI) - CORRECT ANSWER-✔✔✅consists of MONTHLY statistics that measure the
pace of inflation or deflation
Core Inflation - CORRECT ANSWER-✔✔✅CPI minus food and energy costs
Producer Price Index (PPI) - CORRECT ANSWER-✔✔✅index that measures prices at the wholesale level
4 phases of business cycles - CORRECT ANSWER-✔✔✅economic boom, recession, depression, recovery
Recession - CORRECT ANSWER-✔✔✅2 or more consecutive quarters of decline in GDP
Depression - CORRECT ANSWER-✔✔✅severe recession usually accompanied by deflation
Fiscal policy - CORRECT ANSWER-✔✔✅Government policy that attempts to manage the economy by
controlling taxing and government spending.
Keynesian economic Theory - CORRECT ANSWER-✔✔✅The theory that a government policy of increasing
spending and cutting taxes could stimulate the economy in a recession.
