GEB 1011 Business Exam Questions and Answers All Correct
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GEB 1011 Business
Institution
GEB 1011 Business
GEB 1011 Business Exam Questions and Answers All Correct
Economics - Answer- Economics is the study of how wealth (anything of value) is created and distributed
- Microeconomics is the study of the decisions made by individuals and businesses
- Macroeconomics is the study of the national and ...
GEB 1011 Business Exam
Questions and Answers All
Correct
Economics - Answer- Economics is the study of how wealth (anything of value) is
created and distributed
- Microeconomics is the study of the decisions made by individuals and businesses
- Macroeconomics is the study of the national and global economies
Factors of production - Answer- Are the resources used to produce goods and services
- Land and natural resources—elements that can be used in the production process
- Labor—time and effort used to produce goods and services
- Capital: money, facilities, equipment, and machines used in the operation of
organizations
Entrepreneurship—activity that organizes land and natural resources, labor, and capital
Entrepreneur - Answer- A person who risks his or her time, effort, and money to start
and operate a business
Economy - Answer- The system through which a society creates and distributes wealth
Capitalism - Answer- Economic system in which individuals own and operate the
majority of businesses that provide goods and services
Invisible hand - Answer- A term to describe how an individual's own personal gain
benefits others and a nation's economy
- Implies that there should be no government interference in the economy
- Loosely translated, this term means "let them do" (as they see fit).
- Is based on the concept of a market economy
Market economy - Answer- An economic system in which:
- Businesses and individuals decide what to produce and buy
, - The market determines prices and quantities sold
Mixed Economy (U.S. Economy) - Answer- One that exhibits elements of both
capitalism and socialism
In a mixed economy, the four basic economic questions (what, how, for whom, and
who) are answered through the interaction of:
-Households
-Businesses
-Governments
3 Groups in a Mixed Economy - Answer- Households:
-Consume goods and services
-Own resources of some factors of production
-Consumer products—goods and services purchased by individuals for personal
consumption
Businesses:
-Produce goods and services to exchange for revenues (money)
-Use revenues to purchase factors of production
Government:
-Provides public services in exchange for taxes
Command Economy - Answer- An economic system in which the government decides:
-What goods and services will be produced
-How they will be produced
-For whom available goods and services will be produced
-Who owns and controls the major factors of production
(Ex: Socialism & Communism)
Command Economy: (Socialism) - Answer- Government:
Decides what will be produced, how it will be produced, and who owns and controls the
factors
of production
- Owns and controls key industries
- Workers may choose their own occupations
- Goal is to equally distribute income, eliminate poverty, provide social services, and
eliminate economic waste
Small-scale private businesses may be permitted
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