intro to business final exam – ch 1-3 test review

Intro to BusinessFinal Exam – Ch 1-3

Test Review

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Team that earns most points receives 1 extra credit point towards test.

Points based on colors:

•Red – 1 point•Black – 2 points•Green – 3 points

Red – 1 point; Black – 2 points; Green – 3 points

Ch 1 Ch1 Ch 2 Ch 2 Ch 31 7 13 19 252 8 14 20 263 9 15 21 274 10 16 22 285 11 17 23 296 12 18 24 30

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1. A person who buys goods and services is called a

_________

• consumer

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2. List the 4 types of economic systems.

• Command economy• Market economy• Traditional economy• Mixed economy

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3. What is the difference between a need and a want?

• A need is something necessary for survival, a want is something that brings pleasure.

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4. Who controls the resources in a command economy? In a

market economy?

• Government• Individuals

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5. Name 2 capital resources.

• Money, machinery, building, supplies, computers

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6. Wants and needs are ______ but economic resources are

______, which leads to ______.

• unlimited, limited, scarcity

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7. What is the equilibrium price?

• When supply equals demand

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8. As price increases, quantity supplied ______ and quantity

demanded _______.

• increases, decreases

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9. Name the 3 types of economic resources.

• Natural • Human• Capital

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10. A ________ is when you give up something for

something else.

• tradeoff

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11. A ______ determines what products and services will be

available for sale.

• producer

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12. Define goods and services.

• Goods - Products you can purchase; tangible

• Services - Activities that are consumed at the same time they are produced; intangible

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13. Deflation may occur in what phase of the

business cycle?

• Recession or depression

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14. How do you calculate GDP per capita?

• Total GDP / Total population

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15. People above the age of ____ who are actively seeking

work make up the _____ ______.

• 16• Labor force

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16. What are the 4 components of GDP?

• Consumer spending• Business spending• Government spending• Net Exports (Exports – Imports)

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17. What does GDP stand for?

• Gross Domestic Product

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18. In the business cycle, what phase comes after a recession?

• Depression or Recovery

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19. What are the 4 phases of the business cycle in the order

in which they occur?

• Prosperity, Recession, Depression, Recovery

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20. High interest rates = ______ Low interest rates = ______

• Saving• Spending/borrowing

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21. Only ______ goods are counted in GDP.

• final

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22. What number measures the rate of inflation?

• Consumer Price Index (CPI)

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23. ________ is the general rise in the level of prices.

• Inflation

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24. Name 2 sources businesses can use to raise money for

capital projects.

• Personal saving, stocks, bonds, loans

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25. Making, buying and selling goods and services within a country is called ________

business.

• domestic

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26. Exports – imports = _______

• Balance of trade

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27. What are exports? What are imports?

• Exports - Goods and services sold to other countries.

• Imports - Items bought from other countries.

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28. Name the 3 types of trade barriers that a government

might use.

• Tariff• Quota• Embargo

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29. What is a joint venture?

• An agreement between 2 or more companies to share a business project.

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30. How does a country achieve a trade surplus?

• Export more than they import