Intro to Business Final Study Guide

What does the term scarcity refer to in economics?

• Unlimited resources for all wants

• Having more goods than needed

• Limited resources to meet unlimited wants

• Government control over production

A traditional economy is primarily based on:

• Supply and demand

• Government planning

• Customs and historical practices

• Technological advancement

In a command economy, who controls the means of production?

• Consumers

• Private business owners

• The government

• Foreign investors

A budget surplus occurs when:

• Imports exceed exports

• A government spends more than it earns

• Revenue exceeds expenditures

• There is no taxation

A budget deficit means:

• Spending is less than income

• Spending exceeds income

• The economy is booming

• The GDP is high

GDP per capita measures:

• The total exports of a country

• The government deficit

• Average income per person

• Population growth

Imports are:

• Goods sent to another country

• Taxes on foreign goods

• Goods brought into a country

• Domestic products

Exports refer to:

• Goods sold abroad

• Goods purchased from other countries

A trade barrier is:

• A tool to increase imports

• A restriction on international trade

• A type of advertising

• An import

Ethics in business refer to:

• Profitability

• Personal opinions

• Moral principles

• Marketing strategies