BAM101 Midterm exam questions n
answers rated A+
Microeconomics - correct answer ✔✔ Focuses on individual parts of the economy.(households,
businesses and industries)
Consumers in a free market influence what is produced.
Point of equilibrium - correct answer ✔✔ The point at which the supply and demand curves
meet, quantity supplied equals quantity demanded
market equilibrium - correct answer ✔✔ the point of intersection of demand and supply curves
of a given commodity; at equilibrium the market is cleared of the commodity
Macroeconomics - correct answer ✔✔ the study of economy-wide phenomena, including
inflation, unemployment, and economic growth
Four types of market structure - correct answer ✔✔ perfect competition, monopolistic
competition, oligopoly, monopoly
Mixed economic systems - correct answer ✔✔ An economy with varying degrees of free
enterprise and government control.
Communism - correct answer ✔✔ A theory or system of social organization based on the
holding of all property in common, actual ownership being ascribed to the community as a
whole or to the state.
, Socialism - correct answer ✔✔ A system in which society, usually in the form of the
government, owns and controls the means of production.
Capitalism - correct answer ✔✔ an economic and political system in which a country's trade
and industry are controlled by private owners for profit, rather than by the state.
economic responsibilities - correct answer ✔✔ a business's duty to make a profit and increase
shareholder value
ethical responsibilities - correct answer ✔✔ a business's duty to meet the expectations of
society beyond its economic and legal responsibilities
legal responsibility - correct answer ✔✔ a company's social responsibility to obey society's laws
and regulations
philanthropic responsibilities - correct answer ✔✔ additional behaviors and activities that
society finds desirable and that the values of the business support
shareholder - correct answer ✔✔ A person who invests in a corporation by buying stock and is
a partial owner
Stakeholders - correct answer ✔✔ All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the business needs to address.
absolute advantage - correct answer ✔✔ the ability to produce a good using fewer inputs than
another producer
comparative advantage - correct answer ✔✔ the ability of an individual, a firm, or a country to
produce a good or service at a lower opportunity cost than competitors
answers rated A+
Microeconomics - correct answer ✔✔ Focuses on individual parts of the economy.(households,
businesses and industries)
Consumers in a free market influence what is produced.
Point of equilibrium - correct answer ✔✔ The point at which the supply and demand curves
meet, quantity supplied equals quantity demanded
market equilibrium - correct answer ✔✔ the point of intersection of demand and supply curves
of a given commodity; at equilibrium the market is cleared of the commodity
Macroeconomics - correct answer ✔✔ the study of economy-wide phenomena, including
inflation, unemployment, and economic growth
Four types of market structure - correct answer ✔✔ perfect competition, monopolistic
competition, oligopoly, monopoly
Mixed economic systems - correct answer ✔✔ An economy with varying degrees of free
enterprise and government control.
Communism - correct answer ✔✔ A theory or system of social organization based on the
holding of all property in common, actual ownership being ascribed to the community as a
whole or to the state.
, Socialism - correct answer ✔✔ A system in which society, usually in the form of the
government, owns and controls the means of production.
Capitalism - correct answer ✔✔ an economic and political system in which a country's trade
and industry are controlled by private owners for profit, rather than by the state.
economic responsibilities - correct answer ✔✔ a business's duty to make a profit and increase
shareholder value
ethical responsibilities - correct answer ✔✔ a business's duty to meet the expectations of
society beyond its economic and legal responsibilities
legal responsibility - correct answer ✔✔ a company's social responsibility to obey society's laws
and regulations
philanthropic responsibilities - correct answer ✔✔ additional behaviors and activities that
society finds desirable and that the values of the business support
shareholder - correct answer ✔✔ A person who invests in a corporation by buying stock and is
a partial owner
Stakeholders - correct answer ✔✔ All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the business needs to address.
absolute advantage - correct answer ✔✔ the ability to produce a good using fewer inputs than
another producer
comparative advantage - correct answer ✔✔ the ability of an individual, a firm, or a country to
produce a good or service at a lower opportunity cost than competitors
