STUDY GUIDE #1

BUSINESS 101

Part 1 Exam, Chapter 1-4

TRUE/FALSE

Profits are the difference between revenue and expenses, according to accountants.
When government sets ground rules for competitive activity, the intent is to increase freedom of choice for consumers.
Customers' definitions of quality are not tied to value perceptions.
Social responsibility highlights the social and economic effects of management decisions.
With training you learn that deciding what is right or wrong in a given situation is a clear-cut choice.
The FTC is the major regulatory agency in the area of competitive practices.
Regulation of business on the Internet is a major issue facing governments and businesses around the world.
The Framework for Global Electronic Commerce recommends that the commercial and legal framework for electronic commerce should be based on contracts rather than laws.
In the past, a firm's social performance has been evaluated on the basis of the firm's contribution to employment opportunities.
A business transaction that is legal is also ethical.
Fortunately, child labor is considered acceptable practice in only a handful of countries.
An increase in the price of a product tends to shift the demand curve to the right.
If some buyers drop out of the market, sellers will have to lower their price in order to sell the same quantity as before.
There are four degrees of competition in a private enterprise system. they are: pure competition, monopolistic competition, oligopoly and communism.
The effective use, management, and control of information will be the major push for economic growth in the 21st century.
Due to low labor costs, China has a comparative advantage in producing airplanes.

QUESTIONS

Profits are the difference between ________________ and ________________ .
The four factors of production are ________________ , ________________ , ________________, ________________.
The human resources of a firm, a critical input to the private enterprise system, refers to ________________ ?
Citizens in a private enterprise system are free to choose their employment, purchases, and investments, illustrating their right to ________________ .
In colonial days, our country's economy was based on what type of industry?
In colonial society, real economic and political power was centered in what area?
What is Quality?
The U.S. government attempts to measure the sum of all goods and services produced within the nation's boundaries. This economic indicator is called what?
The total amount of goods and services produced in a given period of time, divided by the number of hours worked, indicates a country's what?
Diverse employee teams tend to perform ________________ but develop ________________ than do homogenous employee groups.
Workers and firms are likely to find increased diversity, mobility, ________________ , & ________________ .
studying business will help you accomplish four critical objectives ________________ , ________________ , ________________ , & ________________.
To be a(n) ________________ is to build your own business and control your own future.
An agreement by which a person who wishes to be the exclusive dealer for a particular product must carry other products of that manufacturer in inventory is what type of contract.?
A(n) ________________ requires a company that wishes to be the exclusive dealer for a manufacturer's products to carry other products of the manufacturer in inventory.
A formal procedure that identifies and evaluates all company activities relating to social issues is known as a(n) ________________ .
The public demand that businesses give proper consideration to consumer wants and needs in making its decisions is known as ________________ ?
A public-interest group that has joined with a group of influential companies to outline standards for employers to follow in hiring workers abroad is what?
Know the difference between macroeconomics and microeconomics.
Seller's willingness and ability to provide goods and services for sale in a market is referred to as what?
The curve that shows the relationship between different prices and the quantity demanded at each price is the ________________ ?
What are the three major types of economic systems?
Karl Marx believed that ________________ exploited workers.
________________ has a degree of planned and free enterprise system.
What is not acceptable under communism?
Know the meaning of absolute advantage.
The hypothetical country of Antasia is levying a tax against imported nylon. This tax is called a(n) ________________.
What allows a government to allocate, expand, or restrict foreign exchange in accord with national policy.
The World Bank was founded for what purpose?
When firms develop products and marketing strategies that appeal to the customs, tastes, an buying habits of particular national markets, they are using what kind of strategy?