BUS 100 Exam One Study Guide

4 Factors of production

land, labor, capital, entrepreneurship

Internal Stakeholders that effect a business

Employees, managers, owners, board of directors

Standard of living

what you can afford

Quality of life

overall satisfaction/happiness from your living situation

Microeconomics

focuses on the small picture. How supply and demand interact and individual choices

Macroeconomics

focuses on the big picture. Mostly examines the economy on a global level. Such as Gross Domestic Product, inflation rates, and employment

Internal business environment

a business environment where management has easier control of the environment. This could mean managing HR, Culture, Organizational Structure.

External micro business environment

outside forces that effect the business environment such as customers, competitors, suppliers, and distributors

External Macro business environment

outside forces that are out of control for the business environment such as politics, government, legal, environmental, trends, and tech

External stakeholders that effect a business

customers, suppliers, governments, communities, investors, creditors

Free market

market where prices and production are determined by supply and demand not the government

Supply

The amount of goods available

Demand

how much consumers want a good or service

Equilibrium Point

the point at which quantity supplied equals quantity demanded

Competition: Monopolistic

Markets that sell similar but not identical products such as coffee shops, burgers, clothing

Competition: Monopoly

one firm controls the market

Competition in Oligopoly

a handful of firms control the market

competition: Perfect

markets that sell identical products such as wheat or corn

Command Economy

government controls and owns the economy such as selling prices for businesses.

Mixed Economy

an economic system combining both free will and government interventions to create stability

Capitalism

an economic and political system in which individuals own property and production rather than the government

Socialism

A system in which society, usually in the form of the government, owns and controls the means of production.

4 phases of the business cycle

expansion, peak, contraction, trough

Exporting

selling products to another country

Importing

buying products from another country

Absolute Advantage

the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources

compartive advantage

the ability to produce a good or service at a lower opportunity cost than other producers

Free Trade

Trade without government intervention

Trade Protections

policies that limit imports such as tariffs, quotas, and subsides

Ad Valorem Tariff

tariff is taken by a percentage of the stated price of an imported product

Specific Tariff

Fixed fee charged per unit of imported goods.

Compound Tariff

a combination of an ad valorem and a specific tariff

3 questions when faced with an ethical decision are

is it legal, is it balanced/fair, and how would this make me feel about myself

Compliance Based Codes

- contain clear-cut rules, often enforced by government

- set specific penalties for failure to comply

- intended to promote moral responsibility

Quota

A limit placed on the quantities of a product that can be imported

Integrity based codes

personal responsibility and personal values

Corporate Social Responsibility

a business's obligation to have concern for society's welfare

Ethical Problems in the international market

Corruption, bribery, and exploitation

CPI

consumer price index is an inflation indicator that tracks change in prices paid by consumers

GDP

Gross Domestic Product- the total market value of all final goods and services produced annually in an economy

Inflation

A continuous rise in the price of goods and services

Federal Reverse

the central bank of the United States

United States Treasury

the federal department that collects revenue and administers federal finances

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