1
MGG 150: EXAM 1 Questions with Correct
Answers | Updated (100% Correct Answers)
Free enterprise Answer: the system of business in which individuals
are free to decide what to produce, how to produce it, and at what
price to sell it.
Business profit/loss Answer: the organized effort of individuals to
produce and sell, for a profit, the goods and services that satisfy
society's needs.
Calculate profit Answer: Sales Rev - Business Expenses
Stakeholders Answer: all the different people or groups
of people who are affected by the
policies, decisions, and activities
made by an organization.
EXAM QUESTION: Macroeconomics Answer: National economy
Adam smith Answer: Capitalism
Karl Marx Answer: Communism
Laissez fair capitalism Answer: no government involvement in the
economy
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, 2
Invisible hand Answer: describes how an individual's
own personal gain benefits others
and a nation's economy.
US economy Answer: considered mixed economy, an economy that
exhibits elements
of both capitalism and socialism.
Communism Answer: Strict , centralized
Capitalism Answer: individuals own and operate
the majority of businesses that
provide goods and services.
Economic indicators Answer: Gross domestic product (GDP)
Inflation
Unemployment rate
US Exports/ Imports Answer: E>I= surplus E<I=deficit
US imports more then it exports
Recession Answer: Two or more consecutive 3-month periods of
decline in a country's GDP.
© 2025 All rights reserved
MGG 150: EXAM 1 Questions with Correct
Answers | Updated (100% Correct Answers)
Free enterprise Answer: the system of business in which individuals
are free to decide what to produce, how to produce it, and at what
price to sell it.
Business profit/loss Answer: the organized effort of individuals to
produce and sell, for a profit, the goods and services that satisfy
society's needs.
Calculate profit Answer: Sales Rev - Business Expenses
Stakeholders Answer: all the different people or groups
of people who are affected by the
policies, decisions, and activities
made by an organization.
EXAM QUESTION: Macroeconomics Answer: National economy
Adam smith Answer: Capitalism
Karl Marx Answer: Communism
Laissez fair capitalism Answer: no government involvement in the
economy
© 2025 All rights reserved
, 2
Invisible hand Answer: describes how an individual's
own personal gain benefits others
and a nation's economy.
US economy Answer: considered mixed economy, an economy that
exhibits elements
of both capitalism and socialism.
Communism Answer: Strict , centralized
Capitalism Answer: individuals own and operate
the majority of businesses that
provide goods and services.
Economic indicators Answer: Gross domestic product (GDP)
Inflation
Unemployment rate
US Exports/ Imports Answer: E>I= surplus E<I=deficit
US imports more then it exports
Recession Answer: Two or more consecutive 3-month periods of
decline in a country's GDP.
© 2025 All rights reserved
