Business - A Changing World Exam Questions With Correct Answers Fully Solved
business - Answers individuals or organizations who try to earn a profit by providing products that satisfy
people's needs
product - Answers a good or service with tangible or intangible characteristics that provide satisfaction
and benefits
profit - Answers the difference between what it costs to make and sell a product and what a customer
pays for it
(the basic goal of business)
nonprofit organizations - Answers organizations that may provide goods or services but do not have the
fundamental purpose of earning profits
stakeholders - Answers groups that have a stake in the success and outcomes of a business
economics - Answers the study of how resources are distributed for the production of goods and
services within a social system
natural resources - Answers land, forests, minerals, water, and other things that are not made by people
human resources - Answers the physical and mental abilities that people use to produce goods and
services; also called labor
financial resources - Answers the funds used to acquire the natural human resources needed to provide
products; also called capital
economic system - Answers a description of how a particular society distributes its resources to produce
goods and services
communism - Answers first described by Karl Marx as a society in which the people, without regard to
class, own all the nation's resources
socialism - Answers an economic system in which the government owns and operates basic industries
but individuals own most businesses
capitalism (free enterprise) - Answers an economic system in which individuals own and operate the
majority of businesses that provide goods and services
free-market system - Answers pure capitalism, in which all economic decisions are made without
government intervention
mixed economies - Answers economies made up of elements from more than one economic system
demand - Answers the number of good and services that consumers are willing to buy at different prices
at a specific time
,supply - Answers the number of products-- goods and services-- that businesses are willing to sell at
different prices at a specific time
equilibrium price - Answers the price at which the number of products that businesses are willing to
supply equals the amount of products that consumers are willing to buy at a specific point in time
competition - Answers the rivalry among businesses for consumers' dollars
pure competition - Answers the market that exists when there are many small businesses selling one
standardized product
monopolistic competition - Answers the market structure that exists when there are fewer businesses
than in a pure-competition environment and the differences among the goods they sell are small
oligopoly - Answers the market structure that exists when there are very few businesses selling a
product
monopoly - Answers the market structure that exists when there is only one business providing a
product in a given market
economic expansion - Answers the situation that occurs when an economy is growing and people are
spending more money; their purchases stimulate the production of goods and services, which in turn
stimulates employment
inflation - Answers a condition characterized by a continuing rise in prices
economic contraction - Answers a slowdown in the economy characterized by a decline in spending,
during which businesses cut back on production and lay off workers
recession - Answers a decline in production, employment, and income
unemployment - Answers the condition in which a percentage of the population wants to work but is
unable to find jobs
depression - Answers a condition of the economy in which unemployment is very high, consumer
spending is low, and business output is sharply reduced
gross domestic product (GDP) - Answers the sum of all good and services produced in country during a
year
budget deficit - Answers the condition in which a nation spends more than it takes in from taxes
entrepreneur - Answers an individual who risks his or her wealth, time, and effort to develop for profit
an innovative product or way of doing something
, Identify the main participants of business. - Answers The three main participants in business are owners,
employees, and customers, but others--government regulators, suppliers, social groups, etc. are also
important.
Identify the main activities of business. - Answers Management, Marketing, & Finance
What are the main functions of business management? - Answers Management involves planning,
organizing, and controlling the tasks required to carry out the work of a company.
What are the main functions of marketing? - Answers Marketing involves activities designed to provide
goods and services that satisfy customers: research, product development, promotion, pricing, and
distribution.
What are the main functions of finance? - Answers Finance involves activities that are concerned with
funding a business and using its funds effectively.
Why study business? - Answers Studying business can help you prepare for a career and become a
better consumer.
Describe the role of supply, demand, and competition in a free-enterprise system. - Answers In a free-
enterprise system, individuals own and operate the majority of businesses, and the distribution of
resources is determined by competition, supply, and demand.
What are the four types of competitive environments? - Answers Pure Competition, Monopolistic
Competition, Oligopoly, & Monopoly
Why do we measure the health of our economies? - Answers A country measures the state of its
economy to determine wether it is expanding or contracting and wether the country needs to take steps
to minimize fluctuations.
How do we measure the health of our economies? - Answers One commonly used measure of economic
growth or decline is gross domestic product (GDP), the sum of all goods and services produced in a
country during a year. A budget deficit occurs when a nation spends more than it takes in from taxes.
Trace the evolution of the American economy. - Answers The American economy has evolved through:
the early economy, the Industrial Revolution, the manufacturing economy, the marketing economy, and
the service and Internet-based economy of today.
What is the role of the entrepreneur in the American economy? - Answers Entrepreneurs risk their time,
wealth, and efforts to develop new goods , services, and ideas that fuel the growth of the American
economy.
business ethics - Answers principles and standards that determine acceptable conduct in business
social responsibility - Answers a business' obligation to maximize it's positive impact and minimize it's
negative impact on society
business - Answers individuals or organizations who try to earn a profit by providing products that satisfy
people's needs
product - Answers a good or service with tangible or intangible characteristics that provide satisfaction
and benefits
profit - Answers the difference between what it costs to make and sell a product and what a customer
pays for it
(the basic goal of business)
nonprofit organizations - Answers organizations that may provide goods or services but do not have the
fundamental purpose of earning profits
stakeholders - Answers groups that have a stake in the success and outcomes of a business
economics - Answers the study of how resources are distributed for the production of goods and
services within a social system
natural resources - Answers land, forests, minerals, water, and other things that are not made by people
human resources - Answers the physical and mental abilities that people use to produce goods and
services; also called labor
financial resources - Answers the funds used to acquire the natural human resources needed to provide
products; also called capital
economic system - Answers a description of how a particular society distributes its resources to produce
goods and services
communism - Answers first described by Karl Marx as a society in which the people, without regard to
class, own all the nation's resources
socialism - Answers an economic system in which the government owns and operates basic industries
but individuals own most businesses
capitalism (free enterprise) - Answers an economic system in which individuals own and operate the
majority of businesses that provide goods and services
free-market system - Answers pure capitalism, in which all economic decisions are made without
government intervention
mixed economies - Answers economies made up of elements from more than one economic system
demand - Answers the number of good and services that consumers are willing to buy at different prices
at a specific time
,supply - Answers the number of products-- goods and services-- that businesses are willing to sell at
different prices at a specific time
equilibrium price - Answers the price at which the number of products that businesses are willing to
supply equals the amount of products that consumers are willing to buy at a specific point in time
competition - Answers the rivalry among businesses for consumers' dollars
pure competition - Answers the market that exists when there are many small businesses selling one
standardized product
monopolistic competition - Answers the market structure that exists when there are fewer businesses
than in a pure-competition environment and the differences among the goods they sell are small
oligopoly - Answers the market structure that exists when there are very few businesses selling a
product
monopoly - Answers the market structure that exists when there is only one business providing a
product in a given market
economic expansion - Answers the situation that occurs when an economy is growing and people are
spending more money; their purchases stimulate the production of goods and services, which in turn
stimulates employment
inflation - Answers a condition characterized by a continuing rise in prices
economic contraction - Answers a slowdown in the economy characterized by a decline in spending,
during which businesses cut back on production and lay off workers
recession - Answers a decline in production, employment, and income
unemployment - Answers the condition in which a percentage of the population wants to work but is
unable to find jobs
depression - Answers a condition of the economy in which unemployment is very high, consumer
spending is low, and business output is sharply reduced
gross domestic product (GDP) - Answers the sum of all good and services produced in country during a
year
budget deficit - Answers the condition in which a nation spends more than it takes in from taxes
entrepreneur - Answers an individual who risks his or her wealth, time, and effort to develop for profit
an innovative product or way of doing something
, Identify the main participants of business. - Answers The three main participants in business are owners,
employees, and customers, but others--government regulators, suppliers, social groups, etc. are also
important.
Identify the main activities of business. - Answers Management, Marketing, & Finance
What are the main functions of business management? - Answers Management involves planning,
organizing, and controlling the tasks required to carry out the work of a company.
What are the main functions of marketing? - Answers Marketing involves activities designed to provide
goods and services that satisfy customers: research, product development, promotion, pricing, and
distribution.
What are the main functions of finance? - Answers Finance involves activities that are concerned with
funding a business and using its funds effectively.
Why study business? - Answers Studying business can help you prepare for a career and become a
better consumer.
Describe the role of supply, demand, and competition in a free-enterprise system. - Answers In a free-
enterprise system, individuals own and operate the majority of businesses, and the distribution of
resources is determined by competition, supply, and demand.
What are the four types of competitive environments? - Answers Pure Competition, Monopolistic
Competition, Oligopoly, & Monopoly
Why do we measure the health of our economies? - Answers A country measures the state of its
economy to determine wether it is expanding or contracting and wether the country needs to take steps
to minimize fluctuations.
How do we measure the health of our economies? - Answers One commonly used measure of economic
growth or decline is gross domestic product (GDP), the sum of all goods and services produced in a
country during a year. A budget deficit occurs when a nation spends more than it takes in from taxes.
Trace the evolution of the American economy. - Answers The American economy has evolved through:
the early economy, the Industrial Revolution, the manufacturing economy, the marketing economy, and
the service and Internet-based economy of today.
What is the role of the entrepreneur in the American economy? - Answers Entrepreneurs risk their time,
wealth, and efforts to develop new goods , services, and ideas that fuel the growth of the American
economy.
business ethics - Answers principles and standards that determine acceptable conduct in business
social responsibility - Answers a business' obligation to maximize it's positive impact and minimize it's
negative impact on society
