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

Intro to BusinessFinal Exam – Ch 1-3

Test Review

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

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


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


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

_________

• consumer


2. List the 4 types of economic systems.

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


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.


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

market economy?

• Government• Individuals


5. Name 2 capital resources.

• Money, machinery, building, supplies, computers


6. Wants and needs are ______ but economic resources are

______, which leads to ______.

• unlimited, limited, scarcity


7. What is the equilibrium price?

• When supply equals demand


8. As price increases, quantity supplied ______ and quantity

demanded _______.

• increases, decreases


9. Name the 3 types of economic resources.

• Natural • Human• Capital


10. A ________ is when you give up something for

something else.

• tradeoff


11. A ______ determines what products and services will be

available for sale.

• producer


12. Define goods and services.

• Goods - Products you can purchase; tangible

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


13. Deflation may occur in what phase of the

business cycle?

• Recession or depression


14. How do you calculate GDP per capita?

• Total GDP / Total population


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

work make up the _____ ______.

• 16• Labor force


16. What are the 4 components of GDP?

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


17. What does GDP stand for?

• Gross Domestic Product


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

• Depression or Recovery


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

in which they occur?

• Prosperity, Recession, Depression, Recovery


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

• Saving• Spending/borrowing


21. Only ______ goods are counted in GDP.

• final


22. What number measures the rate of inflation?

• Consumer Price Index (CPI)


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

• Inflation


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

capital projects.

• Personal saving, stocks, bonds, loans


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

business.

• domestic


26. Exports – imports = _______

• Balance of trade


27. What are exports? What are imports?

• Exports - Goods and services sold to other countries.

• Imports - Items bought from other countries.


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

might use.

• Tariff• Quota• Embargo


29. What is a joint venture?

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


30. How does a country achieve a trade surplus?

• Export more than they import

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

Documents

points green

point black

extra credit point

computers red

recovery red

exports goods

labor force red

types of economic resources