IBM Final Exam Review #1

The Business Cycle measures _______ over time.

• Wealth

• Economic Growth

• Unemployment

• Inflation

GDP stands for

• Gross Domestic Product

• Gains on Domestic Products

• Gentrified Double Production

• Gross Domestic Population

What does GDP measure?

• The total money spent on final goods in a country

• The rate of inflation

• The unemployment percentage compared to the tax rate of a country

• The total money spent by the government supporting the economy

What is opportunity cost?

• The value of whatever you are giving up to persue an option

• A business calculation to determine profit

• A marketing pricing technique to attract customers

• When GDP rises causing unemployment

Check all the advantages of a perfect command economy.

• Everyone receives according to their need

• Everyone is on equal footing economically

• It creates more innovation

• Gives people the freedom to produce as they see fit

• It provides for diverse choices of products

Check all the advantages of a perfect market economy.

• Everyone receives according to their need

• Everyone is on equal footing economically

• It creates more innovation

• Gives people the freedom to produce as they see fit

• It provides for diverse choices of products

Why would a country try and slow down their GDP growth?

• To avoid runaway inflation

• To create more jobs

• To force a recession

• To help quality of life

Which business is the most expensive to start?

• Franchise

• Corporation

• Partnership

• Limited Liability Company

Corporations have great tax benefits

• True

• False

Being a limited liability company is a good thing because...

• it has a lower failure rate than other busiensses

• your personal assets are protected if the business fails

• you get better tax incentives

• it is easier to get funding