Exam 1: Exploring the World of Business and Economics

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs is called _____.

When an individual chooses his or her ideal career, it is most likely a reflection of one's _____.

Home Inspirations Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s.When her father retires, Hailey plans on taking over the business.Hailey is aware of many things about the company that she likes, and a few things that she does not.She has particularly noted that when the economy has low unemployment and high total income, sales are great.However, at any other time, sales are not so good. Currently, all of the bedding items are created in one place and everyone works on various tasks every day.Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task.She believes that if production would increase, she could sell her products at a lower price and increase revenue.She knows that most bedding products available in the market are very similar in nature and satisfy the same need.However, if she were able to lower prices, this might give her company the competitive advantage that it needs.She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery.She is also considering selling her products on the Internet.Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company. -Refer to Home Inspirations.Hailey's goal of offering products with unique features and special services is called _____.

Productivity is the total output per worker per year.

Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the ____ stage of the business cycle.

Profit is the payment business owners receive for assuming the risks of ownership.

Although all casual clothing ultimately provides the same purpose, companies such as The Gap strive to make their brand seem unique from the many other brands available in the market.The market for casual clothing can best be characterized as _____.

Steve Wilson, a chef at a major restaurant in San Francisco, wants to start his own restaurant.He surveys the market, finds a suitable location, and calculates how much money he will need to lease the building and purchase the necessary equipment and supplies.Steve visits his banker and requests a loan.The money Steve will receive as a loan and the resources he will purchase with it are known as _____.

All of the following are characteristics of communist countries such as Cuba except

During the 1930s, government became deeply involved in business for the first time.

How does socialism differ from communism?

Why do we say that the U.S.economy is a mixed economy?

The system in which raw materials are distributed by entrepreneurs to homes in which family members process those materials into finished products is referred to as _____.

____ resources are the individuals who provide labor for an organization in exchange for wages.

The separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals is called _____.

A depression is a severe recession that lasts longer than a recession.

The terms real gross domestic product and gross domestic product can be used interchangeably.

Which of the following industries, according to the text, would most likely have the characteristics of an oligopoly?

Home Inspirations Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s.When her father retires, Hailey plans on taking over the business.Hailey is aware of many things about the company that she likes, and a few things that she does not.She has particularly noted that when the economy has low unemployment and high total income, sales are great.However, at any other time, sales are not so good. Currently, all of the bedding items are created in one place and everyone works on various tasks every day.Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task.She believes that if production would increase, she could sell her products at a lower price and increase revenue.She knows that most bedding products available in the market are very similar in nature and satisfy the same need.However, if she were able to lower prices, this might give her company the competitive advantage that it needs.She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery.She is also considering selling her products on the Internet.Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company. -Refer to Home Inspirations.According to Hailey, to improve productivity, the company must practice which of the following?

France, a socialist economy, does not have which of the following goals?