Review Unit 3 Business Concepts and Int

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ReviewUnit 3 Business Concepts and Intl
Business

• Business Essentials
• Petriella/Krause
• Chapters 6 and 7
• Economics and Intl Business

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True or False

• The breakeven point occurs when revenue is
  sufficient to cover all costs for manufacturers
  or producers.

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True

• The breakeven point occurs when revenue is
  sufficient to cover all costs for manufacturers
  or producers.

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True or False

• A depression occurs when there are too few
  resources are available for everyone in the world
  to consume as much as he or she would like.

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False

• A depression occurs when there are too few
  resources are available for everyone in the world
  to consume as much as he or she would like.
• scarcity

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True or False

• A recession occurs when economic growth falls for
  two three-month periods in a row.

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True

• A recession occurs when economic growth falls for
  two three-month periods in a row.

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True or False

• Data that shows how an economy is performing are
  known as economic indicators.

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True

• Data that shows how an economy is performing are
  known as economic indicators.

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True or False

• The study of how societies decide what to
  produce, how to produce it, and how to distribute
  what they produce is known as the business cycle.

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False

• The study of how societies decide what to
  produce, how to produce it, and how to distribute
  what they produce is known as the business cycle.
• economics

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True or False

• Prices are determined by the laws of supply and
  demand.

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True

• Prices are determined by the laws of supply and
  demand.

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True or False

• The price where supply equals demand is known as
  the breakeven analysis.

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False

• The price where supply equals demand is known as
  the breakeven analysis.
• Equilibrium price.

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True or False

• The type of economic system that exists when
  goods are produced soley on government decisions
  is known as a market economy.

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False

• The type of economic system that exists when
  goods are produced solely on government decisions
  is known as a market economy.
• command

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True or False

• When unemployment rises during this part of a
  business cycle as employers lay off workers they
  no longer need it is known as the breakeven
  analysis in economics.

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False

• When unemployment rises during this part of a
  business cycle as employers lay off workers they
  no longer need it is known as the breakeven
  analysis in economics.
• contradictory phase

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True or False

• A tax on imports is known as a quota.

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False

• A tax on imports is known as a quota.
• tariff

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True or False

• The exchange of goods and services by different
  countries is known as domestic trade.

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False

• The exchange of goods and services by different
  countries is known as domestic trade.
• international

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True or False

• Restrictions on the quantity of a good that can
  enter a country is known as an embargo.

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False

• Restrictions on the quantity of a good that can
  enter a country is known as an embargo.
• quota.

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Multiple Choice

• The difference between what a business earns and
  what it spends is known as
• Profit
• Opportunity cost
• Equilibrium price
• Expected cost

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A. Profit

• The difference between what a business earns and
  what it spends is known as

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Multiple Choice

• The concept that states that as the price of a
  good rises, producers are willing to supply more
  of that good is
• Scarcity
• Law of supply
• Law of demand
• Opportunity cost

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B. Law of Supply

• The concept that states that as the price of a
  good rises, producers are willing to supply more
  of that good is

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Multiple Choice

• The concept that states that producing one good
  means not producing another is known as
• Law of supply
• Law of demand
• Opportunity cost
• scarcity

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C. Opportunity cost

• The concept that states that producing one good
  means not producing another is known as

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Multiple Choice

• This concept states that as the price of a good
  increases, the quantity of the good demanded
  falls
• Law of supply
• Law of demand
• Opportunity cost
• scarcity

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B. Law of Demand

• This concept states that as the price of a good
  increases, the quantity of the good demanded falls

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Multiple Choice

• Companies can sell their products or services in
  foreign countries in any of the following ways
  EXCEPT
• Forming a strategic alliance
• Becoming a multinational corporation
• Working through a foreign intermediary
• Creating an embargo to transfer power to the host
  country

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D. Creating an embargo to transfer power to the
host country

• Companies can sell their products or services in
  foreign countries in any of the following ways
  EXCEPT

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Multiple Choice

• An agreement that permits one company to sell
  another companys products abroad in return for a
  percentage of the companys revenues is known a
  a(n)
• Export agreement
• International trade agreement
• Licensing agreement
• Import agreement

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C. Licensing agreement

• An agreement that permits one company to sell
  another companys products abroad in return for a
  percentage of the companys revenues is known a
  a(n)

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Multiple Choice

• Goods and services that are purchased from abroad
  are called
• Comparative
• Absolute
• Exports
• imports

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D. Imports

• Goods and services that are purchased from abroad
  are called

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Multiple Choice

• The idea that individuals, companies, and
  countries should specialize in what they do best
  is most closely associated with
• Comparative advantage
• Absolute advantage
• Importing
• exporting

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A. Comparative advantage

• The idea that individuals, companies, and
  countries should specialize in what they do best
  is most closely associated with