Question 1

Which of the following economic term describes the total value of a nation's goods or services that have been adjusted for inflation?

Accepted Answer

A)   Altered Gross Domestic Product
B)   Gross Domestic Product
C)   Real Gross Domestic Product
D)   Altered Gross National Product
E)   Gross National ProductF) None of the above
G) B) and C)

Question 2

Just-The-One Jewelry had sales revenues of $1,500,000.This retailer also had expenses that totaled $800,000.What is the firm's profit or loss amount?

Accepted Answer

A)   $2,300,000
B)   $1,500,000
C)   $800,000
D)   $700,000
E)   It is impossible to calculate profit or loss with the above information.F) B) and C)
G) C) and D)

Question 3

Which of the following is true about the technology environment?

Accepted Answer

A)   It is not as important as it was fifteen years ago.
B)   It does not affect manufacturing firms.
C)   It changes the way business firms communicate with customers.
D)   It doesn't change as often as it did fifteen years ago.
E)   It is not a concern for most firms that do business only in the United States.F) B) and E)
G) C) and D)

Question 4

From 1950 to 1960, Americans experienced a period of

Accepted Answer

A)   high unemployment.
B)   a rising standard of living.
C)   decreased production.
D)   a decline in gross domestic product.
E)   decreased economic activity.F) B) and C)
G) All of the above

Question 5

During which phase of the business cycle would a company like General Electric introduce new products?

Accepted Answer

A)   repression
B)   peak
C)   recession
D)   depression
E)   recoveryF) None of the above
G) A) and B)

Question 6

Satellite Communications
Jonathan worked for Satellite Communications for twenty years.In the time that he worked there, he learned a lot about the company and how it operated.The company met its sales and revenue goals every year.However, most of the employees had similar educational and cultural backgrounds.He believed that the company could do much better if it cultivated an environment that promoted many different ideas.Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year.Jonathan felt that the most important goal should be to satisfy customers.He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about both how and what his company would produce.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
-Refer to Satellite Communications.Now that Jonathan plans to open his own business, he needs to look at the factors of production.Which of the following is not a factor of production?

Accepted Answer

A)   Labor
B)   Capital
C)   Machinery
D)   Demand
E)   EntrepreneurshipF) B) and C)
G) C) and D)

Question 7

The recurrence of periods of growth and recession in a nation's economic activity is a depression.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a characteristic of the Great Depression?

Accepted Answer

A)   Stock prices decreased.
B)   It was a period of misery and human suffering.
C)   There was a near collapse of the nation's economy.
D)   The government became less involved in business activities.
E)   People lost faith in business and its ability to satisfy society's needs.F) None of the above
G) All of the above

Question 9

For a business, a stakeholder is one who represents the _____

Accepted Answer

A)   investors in the business.
B)   lenders that have provided loans.
C)   suppliers that have extended credit to the firm.
D)   employees who work for the firm.
E)   different people or groups who are affected in some way by the business.F) C) and D)
G) A) and D)

Question 10

In the early 1980s, David Jimenez, a corporate finance manager, faced which of the following problems?

Accepted Answer

A)   high inflation rates
B)   competition from e-business firms
C)   too much productivity
D)   declining interest rates
E)   a decline in the use of specializationF) A) and E)
G) A) and C)

Question 11

Real gross domestic product is an economic measure that is adjusted for price increases of goods and services during a given period of time.

Accepted Answer

A) True 
 B)False

Question 12

The consumer price index (CPI)

Accepted Answer

A)   is a quarterly index that tracks prices at the wholesale level.
B)   measures increases or decreases in the level of worker performance.
C)   is the price of metals, lumber, and raw materials.
D)   measures prices paid during periods of deflations.
E)   is a monthly index that tracks the prices paid by consumers.F) A) and D)
G) A) and C)

Question 13

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 takerF) B) and D)
G) A) and E)

Question 14

Increased competition from firms in other nations is an example of the _____.

Accepted Answer

A)   technological environment
B)   global environment
C)   command environment
D)   laissez-faire environment
E)   mixed environmentF) B) and D)
G) D) and E)

Question 15

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

Accepted Answer

A)   sell either to other firms or to consumers.
B)   satisfy the needs of its customers.
C)   pay out money to cover the various expenses of doing business.
D)   know that people generally buy a product and store it.
E)   make it impossible to satisfy customers.F) A) and B)
G) None of the above

Question 16

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

Accepted Answer

A) True 
 B)False

Question 17

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)   planned economy
E)   market economyF) A) and C)
G) C) and D)

Question 18

Which of the following companies is an example of a manufacturer?

Accepted Answer

A)   American Airlines
B)   General Electric
C)   Merrill Lynch
D)   JC Penney
E)   SearsF) A) and B)
G) A) and C)

Question 19

If the demand for a product declines, what happens to the price of the product?

Accepted Answer

A)   The price stays the same.
B)   The price decreases.
C)   The price increases.
D)   The equilibrium price will be maintained.
E)   The market price will be maintained.F) C) and D)
G) A) and D)

Question 20

How the price of homes affects the number of homes built and sold would be an economic issue studied in a macroeconomics course.

Accepted Answer

A) True 
 B)False

Exam 1: Exploring the World of Business and Economics

Which of the following economic term describes the total value of a nation's goods or services that have been adjusted for inflation?

Correct Answer
verified

During which phase of the business cycle would a company like General Electric introduce new products?

Correct Answer
verified

The recurrence of periods of growth and recession in a nation's economic activity is a depression.

Correct Answer
verified

Which of the following is true about the technology environment?

Correct Answer
verified

From 1950 to 1960, Americans experienced a period of

Correct Answer
verified

Which of the following companies is an example of a manufacturer?

Correct Answer
verified

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

Correct Answer
verified

Real gross domestic product is an economic measure that is adjusted for price increases of goods and services during a given period of time.

Correct Answer
verified

Correct Answer
verified

In the early 1980s, David Jimenez, a corporate finance manager, faced which of the following problems?

Correct Answer
verified

The consumer price index (CPI)

Correct Answer
verified

Just-The-One Jewelry had sales revenues of $1,500,000.This retailer also had expenses that totaled $800,000.What is the firm's profit or loss amount?

Correct Answer
verified

Increased competition from firms in other nations is an example of the _____.

Correct Answer
verified

Which of the following is not a characteristic of the Great Depression?

Correct Answer
verified

If the demand for a product declines, what happens to the price of the product?

Correct Answer
verified

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

Correct Answer
verified

How the price of homes affects the number of homes built and sold would be an economic issue studied in a macroeconomics course.

Correct Answer
verified

For a business, a stakeholder is one who represents the _____

Correct Answer
verified

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

Correct Answer
verified

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

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

Which of the following economic term describes the total value of a nation's goods or services that have been adjusted for inflation?

Correct AnswerverifiedShow Answer

During which phase of the business cycle would a company like General Electric introduce new products?

Correct AnswerverifiedShow Answer

The recurrence of periods of growth and recession in a nation's economic activity is a depression.

Correct AnswerverifiedShow Answer

Which of the following is true about the technology environment?

Correct AnswerverifiedShow Answer

From 1950 to 1960, Americans experienced a period of

Correct AnswerverifiedShow Answer

Which of the following companies is an example of a manufacturer?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Real gross domestic product is an economic measure that is adjusted for price increases of goods and services during a given period of time.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the early 1980s, David Jimenez, a corporate finance manager, faced which of the following problems?

Correct AnswerverifiedShow Answer

The consumer price index (CPI)

Correct AnswerverifiedShow Answer

Just-The-One Jewelry had sales revenues of $1,500,000.This retailer also had expenses that totaled $800,000.What is the firm's profit or loss amount?

Correct AnswerverifiedShow Answer

Increased competition from firms in other nations is an example of the _____.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of the Great Depression?

Correct AnswerverifiedShow Answer

If the demand for a product declines, what happens to the price of the product?

Correct AnswerverifiedShow Answer

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

Correct AnswerverifiedShow Answer

How the price of homes affects the number of homes built and sold would be an economic issue studied in a macroeconomics course.

Correct AnswerverifiedShow Answer

For a business, a stakeholder is one who represents the _____

Correct AnswerverifiedShow Answer

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

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

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