Exam 1: The U.S.Business Environment

A(n)________ shows how many of a given product will be supplied at different prices.

Short Case Scenario 1-1 Expert Electronics is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited because of difficult navigation to and from New Vermont, there are a handful of computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Expert Electronics is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, Expert Electronics is able to fill all orders, but they have no waiting list. -If New Vermont is operating under a capitalistic,market-based economy,what four elements must be present in the economic system to make it work?

Which of the following is identified as a communist nation by the textbook?

A(n)________ occurs when the quantity supplied exceeds the quantity demanded.

What are the five factors of production?

A ________ is a period during which aggregate output declines.

Inflation increases the purchasing power of your money.

The last major depression in the U.S.started in ________.

After considering the textbook's definition of business,how are universities and hospitals different from the organizations described?

Which of the following exists when an industry or market has only one producer?

"Buyers will purchase more of a product as its price drops and less of a product as its price increases." The situation being described is referred to as ________.

Standard of living tends to decrease with growth in the economy.

How should business managers lead during periods of recession?

How have Jet Blue and XM partnered to mix business and entertainment?

Short Case Scenario 1-1 Expert Electronics is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited because of difficult navigation to and from New Vermont, there are a handful of computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Expert Electronics is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, Expert Electronics is able to fill all orders, but they have no waiting list. -A Danish company has built a production facility on the island of New Vermont.Will the value of the goods produced by the Danish company be included in New Vermont's GNP? Explain.

Inflation results in increased purchasing power for the consumer.

Which of the following would be included in the gross national product of the United States?

A chief goal of an economic system is stability.What is meant by stability in an economic system?

What are the six components of a firm's external environment?

In an oligopoly,the entry of new competitors is hard because large capital investment is needed.