Business Economics – Questions With
Comprehensive Solutions
Save
Terms in this set (241)
organization that provides goods or services to earn
business
profits
difference between a business's revenues and its
profits
expenses
everything outside an organization's boundaries that
external environment
might affect it
domestic business the environment in which a firm conducts its operations
environment and derives its revenues
global business the international forces that affect a business
environment
all the ways by which firms create value for their
technological environment
constituents
political-legal environment the relationship between business and government
the customs, mores, values, and demographic
socialcultural environment characteristics of the society in which an organization
functions
relevant conditions that exist in the economic system in
economic environment
which a company operates
a nation's system for allocating its resources among its
economic system
citizens
the resources that are used to make goods and services
factors of production - labor, capital, entrepreneurs, physical resoures and
information resources
physical and mental capabilities of people as they
labor (human resources)
contribute to economic production
, funds needed to create and operate a business
capital
enterprise
businessperson or individual who accepts the risks and
entrepreneur opportunities involved in creating and operating a new
business venture
tangible items that organizations use in the conduct of
physical resources
their businesses
information resources data and other information used by businesses
economy that relies on a centralized government to
planned economy control all or most factors of production and to make all
or most production and allocation decisions
economy in which individuals control production and
market economy
allocation decisions through supply and demand
a political system in which the government owns and
communism controls all resources and means of production and
makes all economic decisions
mechanism for exchange between buyers and sellers of
market
a particular good or service
system that sanctions the private ownership of the
capitalism factors of production and encourages entrepreneurship
by offering profits as an incentive
economic system featuring characteristics of both
mixed market economy
planned and market economies
process of converting government enterprises into
privatization
privately owned companies
planned economic system in which the government
socialism owns and operates only selected major sources of
production
the willingness and ability of buyers to purchase a good
demand
or service
the willingness and ability of producers to offer a good
supply
or service for sale
principle that buyers will purchase (demand) more of a
law of demand
product as its price drops and less as its price increases
, principle that producers will offer (supply) more of a
law of supply product for sale as its price rises and less as its price
drops
demand and supply assessment of the relationships among different levels
schedule of demand and supply at different price levels
graph showing how many units of a product will be
demand curve
demanded (bought) at different prices
graph showing how many units of a product will be
supply curve
supplied (offered for sale) at different prices
profit-maximizing price at which the quantity of goods
market price (equilibrium
demanded and the quantity of goods supplied are
price)
equal
A situation in which quantity supplied is greater than
surplus
quantity demanded
A situation in which quantity demanded is greater than
shortage
quantity supplied
economic system that allows individuals to pursue their
private enterprise
own interests without undue governmental restriction
vying among businesses for the same resources or
competition
customers
market or industry characterized by numerous small
perfect competition
firms producing an identical product
market or industry characterized by numerous buyers
monopolistic competition and relatively numerous sellers trying to differentiate
their products from those of competitors
market or industry characterized by a handful of
oligopoly (generally large) sellers with the power to influence the
prices of their products
market or industry in which there is only one producer
monopoly
that can therefore set the prices of its products
industry in which one company can most efficiently
natural monopoly
supply all needed goods or services
statistics that help assess the performance of an
economic indicators
economy
Comprehensive Solutions
Save
Terms in this set (241)
organization that provides goods or services to earn
business
profits
difference between a business's revenues and its
profits
expenses
everything outside an organization's boundaries that
external environment
might affect it
domestic business the environment in which a firm conducts its operations
environment and derives its revenues
global business the international forces that affect a business
environment
all the ways by which firms create value for their
technological environment
constituents
political-legal environment the relationship between business and government
the customs, mores, values, and demographic
socialcultural environment characteristics of the society in which an organization
functions
relevant conditions that exist in the economic system in
economic environment
which a company operates
a nation's system for allocating its resources among its
economic system
citizens
the resources that are used to make goods and services
factors of production - labor, capital, entrepreneurs, physical resoures and
information resources
physical and mental capabilities of people as they
labor (human resources)
contribute to economic production
, funds needed to create and operate a business
capital
enterprise
businessperson or individual who accepts the risks and
entrepreneur opportunities involved in creating and operating a new
business venture
tangible items that organizations use in the conduct of
physical resources
their businesses
information resources data and other information used by businesses
economy that relies on a centralized government to
planned economy control all or most factors of production and to make all
or most production and allocation decisions
economy in which individuals control production and
market economy
allocation decisions through supply and demand
a political system in which the government owns and
communism controls all resources and means of production and
makes all economic decisions
mechanism for exchange between buyers and sellers of
market
a particular good or service
system that sanctions the private ownership of the
capitalism factors of production and encourages entrepreneurship
by offering profits as an incentive
economic system featuring characteristics of both
mixed market economy
planned and market economies
process of converting government enterprises into
privatization
privately owned companies
planned economic system in which the government
socialism owns and operates only selected major sources of
production
the willingness and ability of buyers to purchase a good
demand
or service
the willingness and ability of producers to offer a good
supply
or service for sale
principle that buyers will purchase (demand) more of a
law of demand
product as its price drops and less as its price increases
, principle that producers will offer (supply) more of a
law of supply product for sale as its price rises and less as its price
drops
demand and supply assessment of the relationships among different levels
schedule of demand and supply at different price levels
graph showing how many units of a product will be
demand curve
demanded (bought) at different prices
graph showing how many units of a product will be
supply curve
supplied (offered for sale) at different prices
profit-maximizing price at which the quantity of goods
market price (equilibrium
demanded and the quantity of goods supplied are
price)
equal
A situation in which quantity supplied is greater than
surplus
quantity demanded
A situation in which quantity demanded is greater than
shortage
quantity supplied
economic system that allows individuals to pursue their
private enterprise
own interests without undue governmental restriction
vying among businesses for the same resources or
competition
customers
market or industry characterized by numerous small
perfect competition
firms producing an identical product
market or industry characterized by numerous buyers
monopolistic competition and relatively numerous sellers trying to differentiate
their products from those of competitors
market or industry characterized by a handful of
oligopoly (generally large) sellers with the power to influence the
prices of their products
market or industry in which there is only one producer
monopoly
that can therefore set the prices of its products
industry in which one company can most efficiently
natural monopoly
supply all needed goods or services
statistics that help assess the performance of an
economic indicators
economy
