Management Ch 2 Economic Activity

_____________ is the market value of all final products produced in a country during a specific time period.

• Standard of living

• Annual sales

• Product value

• Gross domestic product

The four components of GDP are consumer spending, business investment, government spending and ____________

• economic growth

• net exports

• net imports

• inflation

The ______________ rate is the rate of change in prices calculated on a monthly or yearly basis.

• inflation

• deflation

• interest

• fixed income

The ___________ represents the cost of a loan and is expressed as a percent of the amount borrowed.

• CPI

• interest rate

• principle

• supply

___________ competition is a competitive advantage based on factors other than price.

• Price

• Perfect

• Nonprice

• Monopolistic

Fiscal policy is the tax and spending decisions made by the president and _________________.

• the Federal Reserve

• the IRS

• the Supreme Court

• Congress

_____________ competition is when a lower price is the main reason customers buy from one business or another.

• Price

• Place

• Product

• Perfect

____________ is the general rise in prices throughout an economy.

• Interest

• Gross domestic product

• Inflation

• Recession

The four business stages are _____________, peak, recession, and trough.

• growth

• expansion

• maturity

• start-up

High inflation hurts people who live on a fixed income because they have less purchasing power.

• True

• False