Question 1

Consumers exchange tax money to purchase goods and services.

Accepted Answer

A) True 
 B)False

Question 2

Bowflex, Inc., which manufactures total-strength training systems for home use, obtained a patent on its Power Rods.Bowflex has a(n)  ____ for this product.

Accepted Answer

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

Question 3

Perfect competition is characterized by

Accepted Answer

A)   many buyers and many sellers.
B)   few buyers and few sellers.
C)   few buyers and many sellers.
D)   many buyers and few sellers.
E)   a few companies that control the market.F) B) and C)
G) A) and B)

Question 4

If all leading corporations in the soft-drink industry merged, this would

Accepted Answer

A)   encourage pure competition.
B)   encourage monopolistic competition.
C)   lead to an oligopoly.
D)   create a limited monopoly.
E)   create a monopoly.F) A) and E)
G) A) and B)

Question 5

The total dollar value of all goods and services produced by all people within the boundaries of a country is called _____.

Accepted Answer

A)   productivity
B)   the gross domestic product
C)   the gross national product
D)   the inflation factor
E)   the standard of livingF) A) and B)
G) All of the above

Question 6

Examples of command economies include_____.

Accepted Answer

A)   socialism and free enterprise
B)   capitalism and socialism
C)   socialism and market economy
D)   communism and capitalism
E)   socialism and communismF) A) and E)
G) A) and B)

Question 7

For a profit, the Ford Motor Company produces and sells automobiles that satisfy a society's needs.These efforts are referred to as ____.

Accepted Answer

A)   entrepreneurial
B)   agricultural
C)   economical
D)   business
E)   competitionF) None of the above
G) B) and C)

Question 8

Productivity can best be described as

Accepted Answer

A)   a country's total output.
B)   the efficiency of a company's operations.
C)   the economic growth in a country.
D)   the average level of output per worker per hour.
E)   the average level of output per worker per year.F) None of the above
G) B) and C)

Question 9

Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.

Accepted Answer

A)   repression
B)   prosperity
C)   recession
D)   trough
E)   recoveryF) All of the above
G) A) and B)

Question 10

What must a monopoly, such as a public utility, account for when setting its prices?

Accepted Answer

A)   A monopoly, because it has no competitors, can set prices as high as it likes.
B)   A monopoly must consider customer demand, and then set prices at the most profitable level.
C)   A monopoly must take into account what its top competitors are charging for the same product or service.
D)   A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries.
E)   A monopoly must look at the importance of each client, and then determine what respective rate each will be charged.F) All of the above
G) C) and D)

Question 11

As the price of a product increases, the quantity of the product that consumers purchase increases.

Accepted Answer

A) True 
 B)False  False

Question 12

Monopolistic competition is a market situation in which

Accepted Answer

A)   similar but not identical products are available.
B)   only one product is available.
C)   several identical products are available.
D)   the same price is charged for all products.
E)   the government regulates prices.F) A) and D)
G) A) and C)

Question 13

According to economists, natural resources, labor, capital, and entrepreneurship are called _____.

Accepted Answer

A)   free resources
B)   competitive resources
C)   factory resources
D)   factors of manufacturing
E)   factors of productionF) A) and E)
G) None of the above

Question 14

The term stakeholders refers only to the people who have invested money in a business.

Accepted Answer

A) True 
 B)False

Question 15

____ is a necessary and extremely important by-product of capitalism.

Accepted Answer

A)   Monopoly
B)   Socialism
C)   Communism
D)   Competition
E)   PovertyF) B) and E)
G) A) and E) D

Question 16

____ is the study of how wealth is created and distributed.

Accepted Answer

A)   Economics
B)   Business
C)   Marketing
D)   Capitalism
E)   FinanceF) A) and D)
G) A) and E) A

Question 17

People buy goods and services simply to own them.

Accepted Answer

A) True 
 B)False

Question 18

The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.

Accepted Answer

A) True 
 B)False

Question 19

Raw materials, buildings, and machinery are ____ resources.

Accepted Answer

A)   human
B)   financial
C)   information
D)   major
E)   materialF) B) and D)
G) A) and E)

Question 20

Which business environment impacts most the ways today's businesses conduct business?

Accepted Answer

A)   the economic environment
B)   the technological environment
C)   the competitive environment
D)   the global environment
E)   All of the current business environments impact today's businesses equally.F) B) and E)
G) A) and E)

Exam 1: Exploring the World of Business and Economics

Consumers exchange tax money to purchase goods and services.

Correct AnswerverifiedShow Answer

Bowflex, Inc., which manufactures total-strength training systems for home use, obtained a patent on its Power Rods.Bowflex has a(n) ____ for this product.

Correct AnswerverifiedShow Answer

Perfect competition is characterized by

Correct AnswerverifiedShow Answer

If all leading corporations in the soft-drink industry merged, this would

Correct AnswerverifiedShow Answer

The total dollar value of all goods and services produced by all people within the boundaries of a country is called _____.

Correct AnswerverifiedShow Answer

Examples of command economies include_____.

Correct AnswerverifiedShow Answer

For a profit, the Ford Motor Company produces and sells automobiles that satisfy a society's needs.These efforts are referred to as ____.

Correct AnswerverifiedShow Answer

Productivity can best be described as

Correct AnswerverifiedShow Answer

Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.

Correct AnswerverifiedShow Answer

What must a monopoly, such as a public utility, account for when setting its prices?

Correct AnswerverifiedShow Answer

As the price of a product increases, the quantity of the product that consumers purchase increases.

Correct AnswerverifiedFalse

Monopolistic competition is a market situation in which

Correct AnswerverifiedShow Answer

According to economists, natural resources, labor, capital, and entrepreneurship are called _____.

Correct AnswerverifiedShow Answer

The term stakeholders refers only to the people who have invested money in a business.

Correct AnswerverifiedShow Answer

____ is a necessary and extremely important by-product of capitalism.

Correct AnswerverifiedD

____ is the study of how wealth is created and distributed.

Correct AnswerverifiedA

People buy goods and services simply to own them.

Correct AnswerverifiedShow Answer

The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.

Correct AnswerverifiedShow Answer

Raw materials, buildings, and machinery are ____ resources.

Correct AnswerverifiedShow Answer

Which business environment impacts most the ways today's businesses conduct business?

Correct AnswerverifiedShow Answer

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False

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D

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A

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