Business Quiz

What are economics?

the study of how people figure out ways to get the things they want and need by making choices

What drives the economy?

needs and wants drive the economy and the production of goods and services.

What are goods and services?

goods are the physical products while services are tasks that businesses perform for customers.

What does the Factors of Production mean and what are they?

the resources needed to product goods and services; land, labor, capital, and entrepreneurs.

what is land?

natural goods

what is labor?

work people are paid to do to produce goods and services

what is capitol?

anything used to produce goods and services

what are entrepreneurs?

people who combine resources to create goods and services

Traditional Economy

relies on habit, customs, and traditions(indigenous tribes in the Arctic, North America, and eastern Russia)

Command Economy

government makes all the economic decisions(North Korea, Cuba)

Market Economy

people make all economic decisions(US, Hong Kong, Singapore, UK, Canada, Germany)

Mixed Economy

people and government make all economic decisions

US Economy

uses a mixed economy, has a capitalist economy, and a free enterprise economy

Voluntary Exchange

people decide what they want to buy and sell, when they want to make the transaction

Profit Motive

the force that makes people want to improve their well-being

Private Property Rights

the rights that people have to do what they want with the things they want as long as they don't interfere with the rights of others

Competition

the struggle among sellers to attract consumers while lowering costs; the struggle among consumers to get the best products for the lowest prices.

What is the decision making model?

Business decision-making process for businesses and individuals; 1. identify the situation; 2. identify possible courses of action; 3. determine pros and cons; 4. make a decision; 5. evaluate your decision

ticker

1 to 4 letter identifier

Private Company

a private company is owned by one or more shareholders who operate the company or are on the board of directors

Publicly Traded Company

a publicly traded company has gone through an IPO(initial public offering) so that the general public can invest in that company. the general public can buy shares of stock in the company and become partial owners.

Exchange

place where stocks are traded

NYSE

New York Stock Exchange

NASDAQ

stock exchange that trades stock on NASDAQ

Dividends

a sum of money paid regularly(typically quarterly) by a company to its shareholders out of its profits.

Initial Public Offering(IPO)

when a company first becomes a publicly traded company