1. Intro to Business Final Exam – Ch 1-3 Test Review

2. Red – 1 point; Black – 2 points; Green – 3 points Team that earns most points receives 1 extra credit point towards test. Points based on colors: Red – 1 pointRed – 1 point Black – 2 pointsBlack – 2 points Green – 3 pointsGreen – 3 points

3. Red – 1 point; Black – 2 points; Green – 3 points Ch 1 Ch1 Ch 2 Ch 3 1111 7777 13 19 25 2222 8888 14 20 26 3333 9999 15 21 27 4444 10 16 22 28 5555 11 17 23 29 6666 12 18 24 30

4. Red – 1 point; Black – 2 points; Green – 3 points 1. A person who buys goods and services is called a _________ consumer

5. Red – 1 point; Black – 2 points; Green – 3 points 2. List the 4 types of economic systems. Command economy Market economy Traditional economy Mixed economy

6. Red – 1 point; Black – 2 points; Green – 3 points 3. What is the difference between a need and a want?.A need is something necessary for survival, a want is something that brings pleasure.

7. Red – 1 point; Black – 2 points; Green – 3 points 4. 4. Who controls the resources in a command economy? In a market economy? Government Individuals

8. Red – 1 point; Black – 2 points; Green – 3 points 5. Name 2 capital resources. Money, machinery, building, supplies, computers

9. Red – 1 point; Black – 2 points; Green – 3 points 6. Wants and needs are ______ but economic resources are ______, which leads to ______. unlimited, limited, scarcity

10. Red – 1 point; Black – 2 points; Green – 3 points 7. What is the equilibrium price? When supply equals demand

11. Red – 1 point; Black – 2 points; Green – 3 points 8. As price increases, quantity supplied ______ and quantity demanded _______. increases, decreases

12. Red – 1 point; Black – 2 points; Green – 3 points 9. Name the 3 types of economic resources. Natural Human Capital

13. Red – 1 point; Black – 2 points; Green – 3 points 10. A ________ is when you give up something for something else. tradeoff

14. Red – 1 point; Black – 2 points; Green – 3 points 11. A ______ determines what products and services will be available for sale. producer

15. Red – 1 point; Black – 2 points; Green – 3 points 12. Define goods and services. Goods - Products you can purchase; tangible Services - Activities that are consumed at the same time they are produced; intangible

16. Red – 1 point; Black – 2 points; Green – 3 points 13. Deflation may occur in what phase of the business cycle? Recession or depression

17. Red – 1 point; Black – 2 points; Green – 3 points 14. How do you calculate GDP per capita? Total GDP / Total population

18. Red – 1 point; Black – 2 points; Green – 3 points 15. People above the age of ____ who are actively seeking work make up the _____ ______. 16 Labor force

19. Red – 1 point; Black – 2 points; Green – 3 points 16. What are the 4 components of GDP? Consumer spending Business spending Government spending Net Exports (Exports – Imports)

20. Red – 1 point; Black – 2 points; Green – 3 points 17. What does GDP stand for? Gross Domestic Product

21. Red – 1 point; Black – 2 points; Green – 3 points 18. 18. In the business cycle, what phase comes after a recession? Depression or Recovery

22. Red – 1 point; Black – 2 points; Green – 3 points 19. What are the 4 phases of the business cycle in the order in which they occur? Prosperity, Recession, Depression, Recovery

23. Red – 1 point; Black – 2 points; Green – 3 points 20. High interest rates = ______ Low interest rates = ______ Saving Spending/borrowing

24. Red – 1 point; Black – 2 points; Green – 3 points 21. Only ______ goods are counted in GDP. final

25. Red – 1 point; Black – 2 points; Green – 3 points 22. What number measures the rate of inflation? Consumer Price Index (CPI)

26. Red – 1 point; Black – 2 points; Green – 3 points 23. ________ is the general rise in the level of prices. Inflation

27. Red – 1 point; Black – 2 points; Green – 3 points 24. Name 2 sources businesses can use to raise money for capital projects. Personal saving, stocks, bonds, loans

28. Red – 1 point; Black – 2 points; Green – 3 points 25. Making, buying and selling goods and services within a country is called ________ business. domestic

29. Red – 1 point; Black – 2 points; Green – 3 points 26. Exports – imports = _______ Balance of trade

30. Red – 1 point; Black – 2 points; Green – 3 points 27. What are exports? What are imports? Exports - Goods and services sold to other countries. Imports - Items bought from other countries.

31. Red – 1 point; Black – 2 points; Green – 3 points 28. 28. Name the 3 types of trade barriers that a government might use. Tariff Quota Embargo

32. Red – 1 point; Black – 2 points; Green – 3 points 29. What is a joint venture? An agreement between 2 or more companies to share a business project.

33. Red – 1 point; Black – 2 points; Green – 3 points 30. How does a country achieve a trade surplus? Export more than they import