Question 1

Adam Smith argued that the creation of wealth is a proper concern of government.

Accepted Answer

A) True 
 B)False

Question 2

____ resources are the individuals who provide labour for an organisation in exchange for wages.

Accepted Answer

A)   Human
B)   Material
C)   Labour
D)   Financial
E)   InformationalF) C) and E)
G) A) and B)

Question 3

The total of all federal deficits in a nation is called the

Accepted Answer

A)   economic debt.
B)   federal deficit.
C)   fiscal debt.
D)   national debt.
E)   consumer debt.F) D) and E)
G) C) and D)

Question 4

Which economist has been called the father of communism?

Accepted Answer

A)   Adam Smith
B)   Fidel Castro
C)   Mark Cuban
D)   Karl Marx
E)   Alan GreenspanF) None of the above
G) A) and B)

Question 5

The services that government provides would not be produced by private business firms or would be produced only for those who could afford them.

Accepted Answer

A) True 
 B)False

Question 6

Researchers just released the results of a study that shows much of the shellfish eaten contains chemicals that some consider unsafe for consumption.What will likely result from this new information?

Accepted Answer

A)   The demand for shellfish will increase.
B)   The supply of shellfish will decrease, causing a decrease in the price.
C)   The demand for shellfish will increase at every price.
D)   The demand for shellfish will decrease at every price.
E)   The demand for shellfish will likely remain the same, but the market price will adjust.F) B) and C)
G) B) and D)

Question 7

A person who risks his or her time, effort, and money to start and operate a business is called a(n)

Accepted Answer

A)   free-market specialist.
B)   entrepreneur.
C)   intrapreneur.
D)   competitor.
E)   profit taker.F) D) and E)
G) All of the above

Question 8

An oligopoly is a market situation in which there is one producer and a few large buyers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following represents the biggest customer of a nation's business?

Accepted Answer

A)   Government
B)   Other businesses
C)   Foreign governments
D)   Consumers
E)   The militaryF) B) and C)
G) A) and E)

Question 10

When a business distributes profits to business owners, these profits become household income and are removed from the circular flow of the economy.

Accepted Answer

A) True 
 B)False

Question 11

In order for a business to be successful, it must be organised, it must satisfy needs, and it must make a profit.

Accepted Answer

A) True 
 B)False

Question 12

The current technology environment

Accepted Answer

A)   is not as important as it was fifteen years ago.
B)   does not affect manufacturing firms.
C)   changes the way business firms communicate with customers.
D)   doesn't change as often as it did fifteen years ago.E) A) and B)
F) A) and C)

Question 13

When an individual chooses his or her ideal career, it is most likely a reflection of one's

Accepted Answer

A)   values.
B)   hobbies.
C)   skills.
D)   education.
E)   desire to be rich.F) C) and D)
G) A) and E)

Question 14

When a firm's expenses are greater than its sales revenue, the firm has a

Accepted Answer

A)   profit.
B)   loss.
C)   negative cash flow.
D)   recession.
E)   depression.F) C) and D)
G) None of the above

Question 15

Microsoft, which produces very popular Windows software, owns the copyright for its products.Microsoft has a(n)  ____ for these products.

Accepted Answer

A)   monopoly
B)   oligopoly
C)   natural monopoly
D)   limited monopoly
E)   illegal monopolyF) C) and D)
G) A) and E)

Question 16

Cultural diversity represents

Accepted Answer

A)   a business theory that is no longer valid.
B)   the differences among people in a workforce.
C)   a technical skill.
D)   a statistical method used to project sales revenues and profits for global companies.
E)   a religious issue that doesn't affect business organisations.F) C) and D)
G) B) and C)

Question 17

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

Accepted Answer

A) True 
 B)False

Question 18

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Accepted Answer

A) True 
 B)False

Question 19

Perfect competition is the market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Accepted Answer

A) True 
 B)False

Question 20

The economic term used to describe the government's influence on savings and changing the levels of government spending is

Accepted Answer

A)   monetary policy.
B)   fiscal policy.
C)   debt policy.
D)   recovery technique.
E)   recovery guideline.F) C) and D)
G) A) and D)

Exam 1: Introduction to Business

When a firm's expenses are greater than its sales revenue, the firm has a

Correct AnswerverifiedShow Answer

Researchers just released the results of a study that shows much of the shellfish eaten contains chemicals that some consider unsafe for consumption.What will likely result from this new information?

Correct AnswerverifiedShow Answer

Adam Smith argued that the creation of wealth is a proper concern of government.

Correct AnswerverifiedShow Answer

Perfect competition is the market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Correct AnswerverifiedShow Answer

Which economist has been called the father of communism?

Correct AnswerverifiedShow Answer

When an individual chooses his or her ideal career, it is most likely a reflection of one's

Correct AnswerverifiedShow Answer

Cultural diversity represents

Correct AnswerverifiedShow Answer

Which of the following represents the biggest customer of a nation's business?

Correct AnswerverifiedShow Answer

The total of all federal deficits in a nation is called the

Correct AnswerverifiedShow Answer

____ resources are the individuals who provide labour for an organisation in exchange for wages.

Correct AnswerverifiedShow Answer

When a business distributes profits to business owners, these profits become household income and are removed from the circular flow of the economy.

Correct AnswerverifiedShow Answer

An oligopoly is a market situation in which there is one producer and a few large buyers.

Correct AnswerverifiedShow Answer

The services that government provides would not be produced by private business firms or would be produced only for those who could afford them.

Correct AnswerverifiedShow Answer

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Correct AnswerverifiedShow Answer

A person who risks his or her time, effort, and money to start and operate a business is called a(n)

Correct AnswerverifiedShow Answer

In order for a business to be successful, it must be organised, it must satisfy needs, and it must make a profit.

Correct AnswerverifiedShow Answer

The economic term used to describe the government's influence on savings and changing the levels of government spending is

Correct AnswerverifiedShow Answer

Microsoft, which produces very popular Windows software, owns the copyright for its products.Microsoft has a(n) ____ for these products.

Correct AnswerverifiedShow Answer

The current technology environment

Correct AnswerverifiedShow Answer

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified