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BUSN115 Midterm Study Guide

The BUSN115 midterm exam is 2 pages long. It is a timed exam worth 140 points that you may enter only once. You have 2 hours to complete the exam. It consists of 20 multiple choice questions worth 5 points each. There are 2 essay questions worth 20 points each. Be sure to save and save often while you are working on the exam, but do not submit your exam until you are finished with both pages!

To earn full credit for the essay questions, your response to each question should answer the question completely in approximately 2 – 3 paragraphs. The exam reflects the following course objectives and possible topics:

TCO 1: Given a description of a typical business, demonstrate how that business acts within our economic system to achieve its goals as well as those of society, along with an understanding of how the future may impact these goals.

* Know how government regulation affects the economy. * Show the relationship of supply and demand as illustrated on supply and demand curves. * Define elements of productivity and how it can be increased. * Define “quality of life”. * Know the similarities and differences between for profit and not-for-profit organizations. * Know the role of the US Federal Reserve and what tools they use to implement their policies. * Know what a free market economy is and its relationship to the distribution of wealth. * Define a socialist economic system. * Know how profit is determined for a business. * Know who the stakeholders are of a business. * Know what constitutes US fiscal policy and how is it used to manage the economy. * Define gross domestic product (GDP). * Know and explain the “rights of capitalism”.

TCO 2: Given the importance of ethics in business, be able to understand and address ethical dilemmas that may occur in

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