Introduction to Business & Marketing - Final Exam

Match the vocabulary word with the correct definition.

• Total market value for all goods and services produced within the borders of a country during a specific time period

• Opportunity Cost

• Distribution of a share of the company’s earnings to its shareholders

• Gross Domestic Product (GDP)

• Implied cost of using a resource to produce a product which is equal to the income which could be received if the same resource was used to produce another product

• Dividends

Dividends are:

• a type of investment

• a portion of a company's earnings distributed to shareholders

• a company's total revenue

• a financial loss

Gross Domestic Product (GDP) is:

• a measure of a country's economic performance

• a type of government policy

• a financial institution

• a global trade agreement

Opportunity Cost is:

• The cost of an alternative that must be forgone to pursue a certain action

• The total cost of production

• The cost of all resources used in production

• The cost of labor

Match the vocabulary word with the correct definition.

• highly centralized government in which citizens have no influence on laws of the government and freedoms are highly restricted

• highly centralized government in which citizens have no influence on laws of the government and freedoms are highly restricted

• estimate of the adjustment necessary on the exchange rate so an exchange will be equivalent to each currency’s buying power

• government in which citizens can influence laws of the government and are allowed certain rights and freedoms; includes presidential and parliamentary democracies

• government in which citizens can influence laws of the government and are allowed certain rights and freedoms; includes presidential and parliamentary democracies

• economy based on competition, supply and demand, individual rights, and economic profit

• non-intervention by the government

• estimate of the adjustment necessary on the exchange rate so an exchange will be equivalent to each currency’s buying power

• economy based on competition, supply and demand, individual rights, and economic profit

• non-intervention by the government

Match the following terms with their definitions:

• A monetary theory that compares different countries' currencies through a market 'basket of goods' approach.

• Laissez-faire

• A policy or attitude of letting things take their own course, without interfering.

• Totalitarian Government

• An economic system in which decisions regarding investment, production, and distribution are based on supply and demand.

• Democratic Government

• A political system in which the state recognizes no limits to its authority and seeks to regulate every aspect of public and private life.

• Purchasing Power Parity (PPP)

• A system of government in which the citizens exercise power directly or elect representatives from among themselves.

• Market Economy

Which of the following is the main component of globalization?

• A) Economic development

• B) Democratic governments

• C) Foreign trade

• D) Command economies

The practice by which nations conduct relationships with one another is known as which of the following?

• A) Diplomacy

• B) Gross domestic product

• C) Purchasing power parity

• D) Globalization

Developed countries have a high level of (a)   .

• Education

• Healthcare

• Technology

• Infrastructure

Market economies are based on which of the following?

• Government leadership

• Competition

• Economic equality

• All of the above