Define and discuss the term business cycles
What will be an ideal response?
Answer: The economy is always in a state of change, expanding or contracting in response to the combined effects of factors such as technological breakthroughs, changes in investment patterns, shifts in consumer attitudes, world events, and basic economic forces. Business cycles represent the fluctuations in the rate of growth that an economy experiences over a period of several years. These cycles include economic expansion, when the economy is growing and consumers are spending more money, which stimulates higher employment and wages, which then stimulate more consumer purchases. The cycles include economic contraction, when spending declines, employment drops, and the economy as a whole slows down. Even though experts call these up-and-down swings business cycles, this term is somewhat misleading, because real economies do not expand and contract in regular and predictable "cycles." More accurately, the behavior of an economy can be characterized as economic fluctuations.
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When merchandise is sold FOB shipping point, the buyer is responsible for the shipping costs
a. True b. False Indicate whether the statement is true or false
Which of the following would likely be a common argument held by both Milton Friedman and Adam Smith?
a. The government should not involve itself in contract law or enforcement. b. The government should not try to regulate the way businesses choose employees. c. The government should spend its money to create a strong national defense d. Some public goods, such as roads, should be financed by the government.
Our ability to negotiate, resolve conflicts, and understand the goals of others is called ______.
What will be an ideal response?
Researchers have found that performance-based contracts have increased the power of nonprofit ______.
A. clients B. volunteers C. boards of directors D. chief executive officers