Chapter 1 and 2 Exam Principles of Business Marketing and Finance

individual or group that buys products

• customer

• business

• product

• service

Customers who purchase goods or services for their own use

• Business

• customer

• product

• Consumer

characteristics of a product that satisfies wants and needs. Means usefulness or satisfaction

• product

• business

• utility

• profit

the process of making choices that reflect goals by considering all the pros and cons and weighing the costs and benefits of the alternatives.

• mixed economy

• opportunity costs

• factors of production

• systematic decision making

says that the price of a product is determined by the relationship of the supply of a product and demand for the product

• law of supply and demand

• economic system

• capital goods

• factors of production

The gradual rise in prices

• savings

• principal

• inflation

• deflation

The money or fee you pay for borrowing money

• deposits

• withdrawls

• capital gains

• Interest

A measurement of the total goods and services produced within a country during a specific time period.

• Bond

• Gross Domestic Product

• Consumer Price Index

• Productivity

Market Structure with one business that has complete control of a markets entire supply of goods and services

• Monopoly

• Oligopoly

• Competition

• Perfect Competition

The country's central banking system, which is responsible for the nation's monetary policy by regulating the supply of money and interest rates

• Monetary Policy

• Fiscal Policy

• Federal Reserve System

• Price Fixing