Intro to Business Final 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 pointRed – 1 point Black – 2 pointsBlack – 2 points Green – 3 pointsGreen – 3 points

Red – 1 point; Black – 2 points; Green – 3 points Ch 1 Ch1 Ch 2 Ch

Red – 1 point; Black – 2 points; Green – 3 points 1. A person who buys goods and services is called a _________ consumer

Red – 1 point; Black – 2 points; Green – 3 points 2. List the 4 types of economic systems. Command economy Market economy Traditional economy Mixed economy

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

Red – 1 point; Black – 2 points; Green – 3 points Who controls the resources in a command economy? In a market economy? Government Individuals

Red – 1 point; Black – 2 points; Green – 3 points 5. Name 2 capital resources. Money, machinery, building, supplies, computers

Red – 1 point; Black – 2 points; Green – 3 points 6. Wants and needs are ______ but economic resources are ______, which leads to ______. unlimited, limited, scarcity

Red – 1 point; Black – 2 points; Green – 3 points 7. What is the equilibrium price? When supply equals demand

Red – 1 point; Black – 2 points; Green – 3 points 8. As price increases, quantity supplied ______ and quantity demanded _______. increases, decreases

Red – 1 point; Black – 2 points; Green – 3 points 9. Name the 3 types of economic resources. Natural Human Capital

Red – 1 point; Black – 2 points; Green – 3 points 10. A ________ is when you give up something for something else. tradeoff

Red – 1 point; Black – 2 points; Green – 3 points 11. A ______ determines what products and services will be available for sale. producer

Red – 1 point; Black – 2 points; Green – 3 points 12. Define goods and services. Goods - Products you can purchase; tangible Services - Activities that are consumed at the same time they are produced; intangible

Red – 1 point; Black – 2 points; Green – 3 points 13. Deflation may occur in what phase of the business cycle? Recession or depression

Red – 1 point; Black – 2 points; Green – 3 points 14. How do you calculate GDP per capita? Total GDP / Total population

Red – 1 point; Black – 2 points; Green – 3 points 15. People above the age of ____ who are actively seeking work make up the _____ ______. 16 Labor force

Red – 1 point; Black – 2 points; Green – 3 points 16. What are the 4 components of GDP? Consumer spending Business spending Government spending Net Exports (Exports – Imports)

Red – 1 point; Black – 2 points; Green – 3 points 17. What does GDP stand for? Gross Domestic Product

Red – 1 point; Black – 2 points; Green – 3 points In the business cycle, what phase comes after a recession? Depression or Recovery

Red – 1 point; Black – 2 points; Green – 3 points 19. What are the 4 phases of the business cycle in the order in which they occur? Prosperity, Recession, Depression, Recovery

Red – 1 point; Black – 2 points; Green – 3 points 20. High interest rates = ______ Low interest rates = ______ Saving Spending/borrowing

Red – 1 point; Black – 2 points; Green – 3 points 21. Only ______ goods are counted in GDP. final

Red – 1 point; Black – 2 points; Green – 3 points 22. What number measures the rate of inflation? Consumer Price Index (CPI)

Red – 1 point; Black – 2 points; Green – 3 points 23. ________ is the general rise in the level of prices. Inflation

Red – 1 point; Black – 2 points; Green – 3 points 24. Name 2 sources businesses can use to raise money for capital projects. Personal saving, stocks, bonds, loans

Red – 1 point; Black – 2 points; Green – 3 points 25. Making, buying and selling goods and services within a country is called ________ business. domestic

Red – 1 point; Black – 2 points; Green – 3 points 26. Exports – imports = _______ Balance of trade

Red – 1 point; Black – 2 points; Green – 3 points 27. What are exports? What are imports? Exports - Goods and services sold to other countries. Imports - Items bought from other countries.

Red – 1 point; Black – 2 points; Green – 3 points Name the 3 types of trade barriers that a government might use. Tariff Quota Embargo

Red – 1 point; Black – 2 points; Green – 3 points 29. What is a joint venture? An agreement between 2 or more companies to share a business project.

Red – 1 point; Black – 2 points; Green – 3 points 30. How does a country achieve a trade surplus? Export more than they import