Exam 1: The Foundations of Business

For assessing the strength of the housing market, _____ is often a good indicator.

_____ study the interactions between households and businesses and the ways in which the factors of production are combined to produce goods and services.

Swarez Construction Corp. is a nationwide builder of small business buildings. To understand the nature of supply and demand for its products, management would conduct a _____ study.

Every business must have one ____, whose primary role is to infuse money into the business.

In theory, a _____ economy is one in which the government owns all or most enterprises.

What is the free market system

A budget deficit occurs when the government spends more than it takes in.

SCENARIO-BASED New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products. -New Age's customers will typically be willing to buy more of a product when prices are coming down and less when they're on the rise.

The unemployment rate measures the number of unemployed people who _____ seeking work.

Because the government limits them by law, there are few _____ in the United States.

_____ allocates the goods and services produced by government-run industries and tries to ensure that the resulting wealth is distributed equally.

Under a system characterized by _____ competition, there are many consumers buying a standardized product from numerous small businesses.

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

Supply is the quantity of a product that sellers are willing to sell at various prices.

When a fast-food chain responds to environmental concerns by eliminating Styrofoam containers, it shows a desire to be a ______.

Generally speaking, economic systems can be divided into planned and free market systems.

A mixed market economy is one that relies on both goods and serviceproducing businesses and is largely controlled by the government.

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)

Which of the following is an example of a service company

The U.S. leading index combines all economic indicators.