BA 101 MIDTERM STUDY GUIDE 2026
COMPREHENSIVE BUSINESS
FUNDAMENTALS QUESTIONS AND
SOLUTIONS
◉ What is GDP?.
Answer: Gross Domestic Product (GDP) includes both foreign and
domestic owned companies as long as they are located within the
country's boundaries.
◉ How is the unemployment rate defined?.
Answer: The unemployment rate is the percentage of civilians at
least 16 years old who are unemployed and have tried to find a job
within the prior 4 weeks.
◉ What is the market price?.
Answer: Market price is determined by negotiation between buyers
demanding products and sellers supplying products.
◉ What is the real unemployment rate?.
,Answer: The real unemployment rate includes all people in the
standard unemployment rate plus those who are underemployed,
discouraged, and have looked for a job in the last year.
◉ What are the four types of unemployment?.
Answer: The four types of unemployment are frictional (temporary
transitions), structural (mismatch of skills), cyclical (economic
downturns), and seasonal (changes in demand during different
seasons).
◉ What are the four degrees of competition in the free market?.
Answer: The four degrees of competition are perfect competition
(many firms, identical products), monopolistic competition (many
firms, differentiated products), oligopoly (few firms dominate), and
monopoly (one firm controls the market).
◉ What is the business cycle?.
Answer: The business cycle refers to periodic rises and falls that
occur in economies over time.
◉ Who is John Maynard Keynes?.
Answer: John Maynard Keynes was an economist known for
Keynesian economic theory, which advocates for government
intervention to stabilize economic fluctuations.
, ◉ What is fiscal policy?.
Answer: Fiscal policy is the government's approach to managing the
economy by increasing or decreasing taxes and/or government
spending.
◉ Supply and Demand Curves.
Answer: @ equilibrium, market will trend toward that price
◉ Private Enterprise System.
Answer: An economic system where private individuals own and
operate businesses rather than the government
◉ Creating Wealth Transactions.
Answer: only exchanging when you are better off
◉ Competition.
Answer: The rivalry among businesses to attract customers, leading
to lower prices, improved products, and more efficient processes.
◉ Stakeholders.
Answer: Individuals or groups that have an interest in the success
and operations of a business, including citizens, consumers,
employees, and business owners.
COMPREHENSIVE BUSINESS
FUNDAMENTALS QUESTIONS AND
SOLUTIONS
◉ What is GDP?.
Answer: Gross Domestic Product (GDP) includes both foreign and
domestic owned companies as long as they are located within the
country's boundaries.
◉ How is the unemployment rate defined?.
Answer: The unemployment rate is the percentage of civilians at
least 16 years old who are unemployed and have tried to find a job
within the prior 4 weeks.
◉ What is the market price?.
Answer: Market price is determined by negotiation between buyers
demanding products and sellers supplying products.
◉ What is the real unemployment rate?.
,Answer: The real unemployment rate includes all people in the
standard unemployment rate plus those who are underemployed,
discouraged, and have looked for a job in the last year.
◉ What are the four types of unemployment?.
Answer: The four types of unemployment are frictional (temporary
transitions), structural (mismatch of skills), cyclical (economic
downturns), and seasonal (changes in demand during different
seasons).
◉ What are the four degrees of competition in the free market?.
Answer: The four degrees of competition are perfect competition
(many firms, identical products), monopolistic competition (many
firms, differentiated products), oligopoly (few firms dominate), and
monopoly (one firm controls the market).
◉ What is the business cycle?.
Answer: The business cycle refers to periodic rises and falls that
occur in economies over time.
◉ Who is John Maynard Keynes?.
Answer: John Maynard Keynes was an economist known for
Keynesian economic theory, which advocates for government
intervention to stabilize economic fluctuations.
, ◉ What is fiscal policy?.
Answer: Fiscal policy is the government's approach to managing the
economy by increasing or decreasing taxes and/or government
spending.
◉ Supply and Demand Curves.
Answer: @ equilibrium, market will trend toward that price
◉ Private Enterprise System.
Answer: An economic system where private individuals own and
operate businesses rather than the government
◉ Creating Wealth Transactions.
Answer: only exchanging when you are better off
◉ Competition.
Answer: The rivalry among businesses to attract customers, leading
to lower prices, improved products, and more efficient processes.
◉ Stakeholders.
Answer: Individuals or groups that have an interest in the success
and operations of a business, including citizens, consumers,
employees, and business owners.
