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89 Cards in this Set
- Front
- Back
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What is an embargo? |
the government can completely stop an export or import of a product |
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What is interstate commerce? |
between two or more states or countries |
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What is inflation? |
when the general level of prices go up |
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When is inflation good? |
mild inflation is god |
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What is trade surplus? |
when you export more than you import |
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What is a quota? |
a limit on the quantity of a product that may be imported or exported within a given period |
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What is a consumer? |
a person who purchases a good or service for personal use |
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What is personal income? |
salaries/wages, investments, and government payments |
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What is a tariff? |
a tax on imported goods |
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What are intermederaies? |
a person who acts as a link between people in order to bring out an agreement or reconciliation |
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What is a patent? |
gives a person the right to make, sell, or use a product for 20 years |
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What is balance of trade? |
the difference between a country's total imports and exports |
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What is depression? |
a phase of marked by a prolonged period of high unemployment, weak consumer sales, and business failures |
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What is a public utility? |
an organization that supplies a service or product vital to all people |
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What is intrastate commerce? |
in one state or country |
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What is deflation? |
a decrease in the general level of prices |
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What is trade deficit? |
when you import more than you export |
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What is price index? |
a number that compares prices in one year to the prices in some earlier base year |
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What is a proprietorship? |
an unincorporated business with one owner who pays personal income tax o profits from the business |
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What is a contract? |
an agreement to exchange goods or services to something of value, usually money |
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What is recovery? |
a phase in which unemployment begins to decrease, demands for goods and services increases, and GDP begins to rise again |
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What is Gross Domestic Product (GDP)? |
the total of all the final goods and services produced in a country in one year |
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What is productivity? |
production output in relation to a unit of input such as a worker |
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What is a partnership? |
a business owned by 2 or more partners |
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What is prosperity? |
a period in which most people who want to work are working |
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What is the code of ethics? |
a set of rules for guiding the actions of employees or members of an organization |
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What is a contingent worker? |
a temporary group of workers who work for an organization on a non-permanent basis |
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What is a mission statement? |
a formal summary of the aims and values of a company |
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What is recession? |
a period in which demand begins to decrease, businesses lower production, unemployment begins to rise and GDP growth slows for two or more quarters of the calendar year |
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What is a service business? |
a business that provides intangible products such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, or transportation services |
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What are needs? |
something that is essential |
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What are services? |
intangible and consumed at the same time given |
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What do producers do? |
establish supply |
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What are goods? |
tangible |
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What are imports? |
goods that come into the country |
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What are non-renewable resources? |
a resource that can't be replaced when used up |
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What is pollution? |
occurs when the environment is tainted with the by-products of human actions |
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What are exports? |
goods that are shipped out of the country |
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What is conservation? |
saving scarce natural resources |
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What are factors of production? |
economic resources |
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What are the three kinds of economic resources? |
Natural, Human, and Capital |
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What are natural resources? |
come from the earth inlcuding iron ore, coal, water, land, animals, minerals |
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What are capital resources? |
used in the production of goods and services including land, money, buildings, tools, equipment |
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What are human resources? |
people that produce goods and services including farmers, accountants, teachers |
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What is scarcity? |
not having enough resources to satisfy every need |
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What is a dollar vote? |
you decide what you want because of where you send your money |
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What are trade-offs? |
when you give something up to have something else |
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What are opportunity costs? |
the value of the next best alternative that you weren't able to choose |
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What are the three economic questions that every question must answer? |
What to produce? How to produce? What needs and wants to satisfy? |
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What are they types of economic systems? |
command economy, market economy, traditional economy, and mixed economy (communism) |
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What is a command economy? |
resources are controlled by the government |
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What is a market economy? |
resources are owned and controlled by the people |
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What is a traditional economy? |
goods and services are produced in ways it has always been done |
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What is a mixed economy? |
some things are controlled by the government and some are controlled by the people sometimes called a communism |
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What is supply? |
the quantity of a good or service that a business is willing to produce |
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What is demand? |
the quantity of a good or service that a consumer is willing to buy |
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What is market price? |
the point where supply and demand are equal aka equilibrium point |
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What are the components of GDP? |
-consumer spending for food clothing, housing and other aspects -business spending for all buildings, equipment, and inventory items -government spending to pay employees and buy supplies and other goods and services -the country's exports less the imports |
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What is GDP per capita? |
output per person |
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When are people considered to be unemployed? What is the unemployment rate? |
people who are looking for work and willing to work but unable to find a job |
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What are the 4 stages of the business cycle? |
prosperity, recession, depression, recovery |
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What are capital projects? |
the purchase of an item a business will use offer an extended period of time ex. adding onto a building, buying land, buying equipment |
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What are the 3 ways capital projects are funded? |
personal savings, stock investments, bonds |
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What is absolute advantage? |
when a country can produce a good or service at a lower cost than other countries |
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What is comparative advantage? |
when a country has an absolute advantage in 2 products, but specializes in the production of a good or service which is more efficient "more better" |
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What is the balance of payments? |
the difference between the amount of money that comes into a country and the amount that goes out of it |
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What factors can affect currency values? |
balance of payments- positive balance makes it stay the same or rise, economic conditions-inflation reduces buying power and interest rates, political staybility |
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What are the 4 factors of the international business environment? |
geography, economic development, cultural influences, political and legal concerns |
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What is infrastructure? |
a nation's communication, transportation, and utilities system |
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What are the three types of trade barriers? |
embargo, tariff, quota |
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What encourages trade? |
free trade zones, free- trade agreements, and common markets |
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What are multinational companies? |
an organization that does business in several countries |
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What is a global strategy? (coca-cola) |
uses the same product and marketing strategy worldwide |
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What is a multinational strategy? (restaurants) |
treats each country market differently; adapts to the customs, tastes, and buying habits of a distinct national market |
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How can companies expand internationally? |
Licensing, franchising, joint venture |
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What is licensing? |
selling the right to use some intangible property for a free or royalty |
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What is franchising? |
the right to use a company name or business process in a specific way |
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What is a joint venture? |
allows two or more companies to have raw materials, shipping facilities, managements activities, or production activities; very popular for manufacturing, such as Japanese and US automobile manufacturing |
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What is social responsibility? |
the duty of a business to contribute to the well being of a community |
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How do businesses accomplish social responsibility? |
environmental protection, workplace diversity, job saftey, employee wellness |
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What are the benefits of social responsibility? |
-expanded justice for groups of a society -enhanced company image, reduced need for government actions -improved quality of life in a community and around the world -increased awareness of social issues among workers consumers and others |
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What are the costs of social responsibility? |
-new nonpolluting or safer equipment -building repairs or removing risks -wellness and rehabilitation programs -social projects sponsored by a company |
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What are business ethics? |
rules about how businesses and their employees ought to behave |
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What are the 4 factors that must be in place to have an enforceable and valid contract? |
agreement, legality, competent parties, and consideration |
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What are the three examples of intellectual property? |
trademarks, copyright, patents |
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How does the government regulate utillities? |
usually privately owned but government has to approve how much they are charging |
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What is a monopoly? |
a company or group having exclusive control over a good or service |
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What is an antitrust law? |
government action meant to promote competition and fairness to avoid monopolies |
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How does the government assist businesses |
-government buys goods and services -government employs workers -bureau of labor statistics, department of ag, department of commerce, small business adminsitration |
