Southwest Minnesota State University

BIOLOG 101

Chapter 1

1)The relationship between sales and profits can be written as Sales revenue – expenses

1. The study of an individual’s economic decisions would be an example of
2. A local retailer calls its customers when it receives merchandise that they may be interested in, provides individual service to each customer, provides forms and phone numbers for complaints and comments, and has a 100 percent satisfaction guarantee. Which objective is this business working hard to accomplish?
3. Economists define a recession as two or more consecutive three-month periods of decline in a country’s gross domestic product
4. For a business, stakeholders represent
5. During which stage of the business cycle would a company such as 3M begin to focus on being more value conscious in its production decisions?
6. Fluctuations in a nation’s economy are referred to as its
7. Andy is interested in investing in the stock market, but having studied the Great Depression in school, she is afraid she could lose all of her money. She read through the finance pages of the newspaper and sees that unemployment has dropped to the lowest level it has been in the past ten years, new businesses are opening, housing sales are up because interest rates are level, and the national debt is decreasing. If the economy is her only concern about buying stock, should she buy stock?
8. A legal monopoly is often referred to as a natural monopoly
9. As a farmer, Charles Forsythe is familiar with the economics of perfect competition. How is the price at which he sells his corn determined?