BUSN 201 Exam Questions With Revised
Answers
Chapter 1
Free Enterprise - answerThe system of business in which individuals are free to decide what
to produce, how to produce, and at what price to sell it.
Economics - answerThe study of how wealth is created and distributed
Microeconomics - an...
Free Enterprise - answer✔✔The system of business in which individuals are free to decide what
to produce, how to produce, and at what price to sell it.
Economics - answer✔✔The study of how wealth is created and distributed
Microeconomics - answer✔✔The study of decisions made by individuals and businesses
Macroeconomics - answer✔✔The study of national economy and the global economy
Capitalism - answer✔✔Individuals own and operate the majority of businesses
Command Economy - answer✔✔Economic system in which the government decides what goods
and services will be produced and who owns and controls the major factors of production
Productivity - answer✔✔The average level of output per worker per hour
Gross domestic product - answer✔✔The total dollar values of all goods and services produced
by all people within the boundaries of a country during a one- year period
Inflation - answer✔✔The general rise in the level of prices
Deflation - answer✔✔The general decrease in the level of prices
Unemployment Rate - answer✔✔The percentage of a nations labor force unemployment at any
time
The consumer price index - answer✔✔A monthly index that measures the changes in price of a
fixed prices of goods purchased by the typical consumer in an urban area
The Producer Price Index - answer✔✔Measures prices that producers receive for finished goods
(whole sale level)
Business cycle - answer✔✔The recurrence of periods of growth and recession in a nations'
economic activity
Recession - answer✔✔Two or Three or more consecutive three months periods of decline in a
countrys' GDP
Depression - answer✔✔A severe recession that lasts longer than a typical recession and has a
larger decline in business activity when compared to a recession
Monetary Policies - answer✔✔The Federal Reserve's decision that determine the size of supply
of money in the nations and level of interest rates
Fiscal Policies - answer✔✔The government can influence the amount of savings and
expenditures by altering the tax structure and changing levels of government spending
Federal Deficit - answer✔✔When the government spends more than it receives
National Debt - answer✔✔The total of all federal deficits
Perfect Competition - answer✔✔Where there are many buyers and sellers of a product and no
single buyer or seller is powerful enough to affect the price of that product
Supply - answer✔✔The quantity of the product that producers are willing to sell at each various
prices
Demand - answer✔✔The quantity that buyers are willing to purchase at various prices
Market Price - answer✔✔The price at which quantity demand is exactly equal to the quantity
supplied
Monopolistic Competition - answer✔✔Market situation where there are many buyers along with
a relatively large number of sellers they try to add uniqueness to their products
Product differentiation - answer✔✔The process of developing and promoting differences
between ones' product and all competitive products
Oligopoly - answer✔✔A market or industry in which there are few sellers
Monopoly - answer✔✔A market or industry with only one seller and there are barriers to keep
other firms from entering the industry
Standard of living - answer✔✔A loose subjective measure of how well an individual or society
is, mainly in terms of wants and satisfaction through goods and services
Barter - answer✔✔A system of exchange in which goods and services are traded directly for
other goods and services without using money
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brightstars. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
