Exam 1: The Foundations of Business

_____ is the study of the production, distribution and consumption of goods and services.

In an oligopoly, each seller supplies a large portion of all the products sold in the marketplace.

Leading economic indicators predict the status of the economy over the course of _____.

The three goals shared by all of the world's economies are growth, high employment, and price stability.

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

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. -Having plotted both the supply curve and the demand curve for a drug on one graph, New Age executives can determine its equilibrium price. At this point, all patients will be equally able to pay for the drug regardless of the quantity supplied by the company.

Fiscal policy relies on the government's powers of _____.

What do we mean by the equilibrium price?

Soup, Salad, & Sandwich is a regional chain of restaurants in the northeast that provides dine-in, carry-out, and catering services. Owners Jesse and Mataya Peña currently operate six locations and are in the process of opening a new restaurant in another state. Their operation is quite successful and appeals to health-conscious consumers, busy moms, and executives in a hurry. Staying open longer hours, enlarging the menu, and expanding the scope of the business are among the many goals set by the Peñas. They want to follow a traditional business model in reaching their goals. -As part of their business plan, the Peñas identify their customers' needs, design products and services to meet those needs, and manage customer relationships. In this respect, they're engaged in _____.

To counter a recession, the Fed will take _____ measures to increase the money supply and reduce interest rates.

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

Asset-producing resources are the outputs used to produce inputs in a business.

_____ involve(s) the design and management of the processes that transform resources into goods or services.

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

The sole regional supplier of Gasanol, a fuel made of gasoline and soy oil, operates in a(n) _____ market.

As a functional area of business, what does the accounting section do?

What are the external forces that influence business activities?

If average weekly manufacturing hours by production workers is on the rise, the economy will probably improve.

As factors of production, equipment, buildings, vehicles, and cash are considered _____.

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. -In researching the quantity of medicines that customers are willing to purchase at various prices, New Age management will actually be researching demand.