Virtual Business Semester I Review

When considered low, the economy shows a rising currency value. Which of the following terms describes this occurrence?

• Interest rate
• Inflation
• Public debt
• Deficit

Which agreement focuses on tariffs related to agriculture, textiles and automobiles?

• North American Free Trade Agreement
• General Agreement on Tariffs and Trade
• United States Free Trade Agreement
• Global Free Trade

when a business creates the efficient production of a specific product or service

• Specialization
• Global Business
• Bilingualism
• Employability

when a company sells goods and services at a lower price than its competitors and still gains larger profits

• Comparative Advantage
• Specialization
• Global Business
• Bilingualism

amount charged by a lender to a borrower for the use of their money

• Interest Rate
• Inflation
• Foreign Exchange
• Direct Investment

debt owed by a government

• Public Debt
• Deficit
• Interest Rate
• Inflation

investors look to support stable countries with strong economic performance

• Political Stability
• Terms of Trade
• Public Debt
• Deficit

What is the definition of a fixed cost?

• Price never changes

• Regularly occurring payments

• A constant cost to a business

• Money left over after outgoings

Risk is

• an indicator of a threat

• the possibility of loss, damage, or any undesirable event

• not the same as uncertainty

• All of the above

Type of risk caused by changes in business conditions

• Human

• Economic

• Financial

• Natural