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Economy Midterm Exam Essay

1.1. (TCO 1) The amount of money a business takes in during a given time period by selling goods and/or selling services.

2.2. (TCO 1) That part of economics that studies the operations of a nation’s economy as a whole.

3.3. (TCO 1) That part of economics that studies the behavior of people and organizations in particular markets.

4.4. (TCO 2) An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends.

5.5. (TCO 3) A complete ban on the import or export of a certain product; or the stopping of all trade with a country.

6.6. (TCO 3) An unfavorable balance of trade occurs when the value of a country’s imports exceeds that of its exports

7.7. (TCO 4) Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership, with the objective of reselling the business at a profit.

1. (TCO 1) Describe and explain capitalism and how it functions in a free market economy.

2. (TCO 2) Describe and explain corporate responsibility using an ethical perspective. Your stakeholder group for your answer is parents of high school students. Your company designs, produces, and sells video game apps for the mobile market. A concern has been raised in the community where your company is located about the violence portrayed in your mobile video game apps. What do you say to the parents? Why

3. (TCO 3) Describe and explain the fundamentals of the international market. Why do nations trade and how trade measured.

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