Exam 6: Section 5: Does It Matter: Society, Ethics and Business

When debt levels get too high, government officials can try to reduce the debt by increasing taxes only.

Examples of factors of production includes labour, knowledge workers, entrepreneurs and cash.

Using a microeconomic view, a business owner introducing a new product would have to consider is there enough consumer demand for this product and what is the current supply of similar products.

Under socialism, with significant government ownership of certain industries, the government has the ability to control donations to non-profit groups.

The unemployment rate would likely include a person laid off who decided to travel around the world.

The total amount of frictional and structural unemployment is equal to the natural rate of unemployment plus full employment.

The baby boom of the 1950s ultimately brought a large number of people into the workforce, creating an increase in cyclical unemployment.

A market economy offers entrepreneurs certain rights such as the right to own public property.

An economic environment is made up of 3 key groups including businesses, charitable organizations and non-profit groups.

Using a macroeconomic view, a restaurant increasing prices would have to consider are employment levels high and is consumer spending high.