Business 101 Exam 1 – Latest Version with Complete Solutions

Business 101 Exam 1 with complete
solutions latest version




business .- .CORRECT .ANSWER-organization .that .proviedes .goods .or .services
.to .earn .a .profit


profit .- .CORRECT .ANSWER-difference .between .a .business's .revenues .and
.expenses


external .environment .- .CORRECT .ANSWER-everything .outside .an
.organization's .boundaries .that .might .affect .it


economic .system .- .CORRECT .ANSWER-a .nation's .system .for .allocating .its
.resources .among .its .citizens


factors .of .production .- .CORRECT .ANSWER-resources .used .in .the .production .of
.goods .and .services- .labor, .capital, .entrepreneurs, .physical .resources, .and
.information .resources


labor .(human .resources) .- .CORRECT .ANSWER-physical .and .mental .capabilities
.of .people .as .they .contribute .to .economic .production


capital .- .CORRECT .ANSWER-funds .needed .to .create .and .operate .a .business
.enterprise


entrepreneur .- .CORRECT .ANSWER-indicidual .who .accepts .the .risks .and
.opportunities .involved .in .creating .and .operating .a .new .business .venture


intrepreneur .- .CORRECT .ANSWER-part .of .a .company

planned .economy .- .CORRECT .ANSWER-economy .that .relies .on .a .centralized
.government .to .control .all .or .most .factors .of .production .and .to .make .all .or
.most .production .and .allocation .decisions


communism .- .CORRECT .ANSWER-political .system .in .which .the .government
.owns .and .operates .all .factors .of .production


market .economy .- .CORRECT .ANSWER-economy .in .which .individuals .control
.production .and .allocation .decisions .through .supply .and .demand

, market .- .CORRECT .ANSWER-mechanism .for .exchange .between .buyers .and
.sellers .of .a .particular .good .or .service


capitalism .- .CORRECT .ANSWER-system .that .santions .the .pricate .owndership
.of .the .factors .of .production .and .encourages .entrepreneurship .by .offering
.profits .as .an .incentive.


privatization .- .CORRECT .ANSWER-process .of .converting .government
.enterprises .into .privately .owned .companies


socialism .- .CORRECT .ANSWER-planned .economic .system .in .which .the
.government .owns .and .operates .only .selected .major .sources .of .production


demand .- .CORRECT .ANSWER-the .willingness .and .ability .of .buyers .to .purchase
.a .good .or .service


supply .- .CORRECT .ANSWER-the .willingness .and .ability .of .producers .to .offer .a
.good .or .service .for .sale


pricate .enterprise .- .CORRECT .ANSWER-economic .system .that .allows
.individuals .to .pursue .their .own .interests .without .undue .governmental
.restriction


competition .- .CORRECT .ANSWER-vying .among .businesses .for .the .same
.resources .or .customers


perfect .competition .- .CORRECT .ANSWER-market .or .industry .characterized .by
.numerous .small .firms .producing .and .identicle .product


monopolistic .competition .- .CORRECT .ANSWER-market .or .industry
.characterized .by .numerous .buyers .and .relatively .numerous .sellers .trying .to
.differentiate .their .products .from .those .of .competitors


monopoly .- .CORRECT .ANSWER-market .or .industry .in .which .there .is .only .one
.producer .that .can .therefore .set .the .prices .of .its .products


natural .monopoly .- .CORRECT .ANSWER-industry .in .which .one .company .can
.most .efficiently .supply .all .needed .goods .or .services


standard .of .living .- .CORRECT .ANSWER-the .total .quantity .and .quality .of .goods
.and .services .people .can .purchase .witht .the .currency .used .in .their .economic
.system


gross .domestic .product .(GDP) .- .CORRECT .ANSWER-total .value .of .all .goods
.and .services .produced .within .a .given .period .by .a .national .economy .through
.domestic .factors .of .production