BME Study Guide

Something that you do NOT need for survival but would like to possess. Considered unlimited.

• needs

• resources

• wants

• scarcity

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

• economics

• business cycle

• gross domestic product

• profit

What term is used to describe the part of the labor force that does not have a job but is currently looking for one?

• student

• unemployed

• over-employed

• under-employed

This states that people will buy more of a product at a lower price rather than a higher price.

• law of supply

• resources

• law of demand

• factors of production

The fundamental economic problem is that resources are limited, but economic wants are unlimited. What terms best describes this problem?

• scarcity

• productivity

• demand

• trade-off

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits is known as what?

• franchise

• corporation

• partnership

• sole proprietorship

The governing body of a company; elected by shareholders, in the case of public companies, to set strategy and oversee management.

• board of directors

• limited liability

• corporation

• articles of incorporation

A form of business ownership where the business is a legal entity that is separate and distinct from its owners. The business can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

• sole proprietorship

• unlimited liability

• partnership

• corporation

An individual who creates a new business, bearing most of the risks and enjoying most of the rewards

• shareholder

• regulations

• investors

• entrepreneur

A business owned and managed by a single individual

• financing

• sole proprietorship

• partnership

• corporation