Exam 1: The Foundations of Business

The study of the economy as a whole is called _____.

The unemployment rate is the percentage of the labor force that is underemployed and no longer looking for work.

Ultimately,the goal of any business is to satisfy the needs of its owner(s).

The economic system of a country is the means by which a society makes decisions about allocating resources to produce and distribute products.

Because the cost of starting a business in an oligopoly is usually _____,the number of firms entering it is _____.

Managerial accountants prepare financial statements to help users,both inside and outside of the organization,assess its financial strengths.

As a functional area of business,_____ measures,summarizes,and communicates financial and managerial information and advises other managers on financial matters.

When sellers supply more of the product than buyers are willing to purchase,a ______ is created.

Currently,the U.S.national debt is approximately _____.

Product differentiation can be achieved by _____.

The activities needed to operate a business can be divided into a number of _____.

Perfect competition exists when many consumers are buying standardized products from a few small businesses.

When the overall price level of consumer goods goes up,we have _____;when they go down,we have _____.

A _____ accountant prepares information,such as reports on the cost of materials used in the production process,for internal use only.

Fast-food chains that have eliminated Styrofoam containers reflect the desire of owners to be good corporate citizens.

Previously communist economies,such as those of Eastern Europe,are becoming more mixed as they adopt capitalist characteristics and convert previously government-owned businesses to private ownership.

This week,Billy Bob's Barbeque had sales of $4,000.Employees were paid $1,000;food costs were $1,500;and rent was $500.Profit for the week was (select one)

When government-owned businesses convert to private ownership,they go through a process called _____.

Among free market theorists,the principle of laissez-faire means _____.

When the Fed believes that inflation is a problem,it will use _____ policy to decrease the money supply and raise interest rates.