Question 1

Of the following, which is not considered a basic management function necessary to be an effective manager?

Accepted Answer

A)   Planning
B)   Organizing
C)   Leading and motivating
D)   Controlling
E)   SellingF) A) and B)
G) C) and D)

Question 2

Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work. Chris seems to value

Accepted Answer

A)   recognition and rewards.
B)   the opportunity to help others.
C)   promotions and transfers.
D)   more free time.
E)   get-rich-quick schemes.F) A) and E)
G) B) and D)

Question 3

All of the following would typically be considered consumer products except a

Accepted Answer

A)   2-liter of Coke.
B)   DVD player.
C)   prom dress.
D)   high-powered drill press.
E)   bag of dog food.F) B) and E)
G) B) and C)

Question 4

An executive at a U.S. steel company uses growth in gross domestic product as one way to develop trends in industry steel use, so he records GDP change for each year on a graph. However, the executive's figures are considerably higher than those of the staff economist, who also has drawn a graph. This difference is most likely the result of

Accepted Answer

A)   measurement errors by the U.S. Bureau of the Census.
B)   a decline in gross domestic product.
C)   an increase in gross domestic product.
D)   the economist adjusting the figures for the inflation rate.
E)   a change in productivity.F) B) and D)
G) A) and B)

Question 5

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 6

What three activities must a business perform in order to be successful? Briefly describe each of these and why each is essential to business success.

Accepted Answer

In order to be successful, a business mu...

Question 7

Amazon.com has the following rights: to make a profit for its stockholders; to market a wide variety of products; and, to compete with other online retailers. Amazon.com operates in a(n)  ____ system.

Accepted Answer

A)   free-enterprise
B)   domestic
C)   e-business
D)   socialistic
E)   totalitarianF) D) and E)
G) C) and D)

Question 8

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) B) and D)

Question 9

The rivalry among businesses for sales to potential customers

Accepted Answer

A)   is an unfair business practice.
B)   is a necessary part of a command economy.
C)   is referred to as competition.
D)   is typical in a communist nation.
E)   doesn't exist in the real world.F) A) and B)
G) A) and C)

Question 10

People buy goods and services simply to own them.

Accepted Answer

A) True 
 B)False

Question 11

The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a ____ economy.

Accepted Answer

A)   planned
B)   utilitarian
C)   nationalized
D)   mixed
E)   centralizedF) B) and E)
G) B) and D)

Question 12

Diane is passionate about soccer and decides to open her own soccer sporting goods store. She invests her money, time, and effort into making the store a success. Diane can be best described as a(n)

Accepted Answer

A)   capitalist.
B)   laborer.
C)   corporate owner.
D)   entrepreneur.
E)   competitor.F) None of the above
G) A) and C)

Question 13

Profit is the payment business owners receive for assuming the risks of ownership.

Accepted Answer

A) True 
 B)False

Question 14

During the 1930s, government became deeply involved in business for the first time.

Accepted Answer

A) True 
 B)False

Question 15

The use of the factory system in the United States helped to usher in the

Accepted Answer

A)   colonial period.
B)   Industrial Revolution.
C)   Great Depression.
D)   Renaissance.
E)   twentieth century.F) A) and B)
G) A) and C)

Question 16

A copyright of a product exists indefinitely.

Accepted Answer

A) True 
 B)False

Question 17

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

Accepted Answer

A)   is related to the real gross domestic product.
B)   measures prices that manufacturers must pay for lumber and other raw materials used in the manufacturing process.
C)   tracks the cost of housing and transportation.
D)   is published daily.
E)   measures the effect of interest rates on the economy.F) B) and E)
G) B) and D)

Question 18

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct?

Accepted Answer

A)   Yes, by putting this money into a savings account, only she has access to the funds and they are no longer available to the circular flow.
B)   No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
C)   Yes, only direct investments into companies, such as purchasing ownership shares of that company, will put her savings back into the circular flow.
D)   Yes, the circular flow focuses on businesses and government, and therefore Gail's savings have no impact on the circular flow.
E)   No, because she earned this money from a company and because she paid taxes on it, it is always considered part of the flow.F) C) and D)
G) A) and E)

Question 19

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) All of the above
G) B) and D)

Question 20

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

Accepted Answer

A)   product
B)   producer's
C)   market
D)   planned
E)   commandF) B) and D)
G) C) and D)

Exam 1: Exploring the World of Business and Economics

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

Correct Answer
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Correct Answer
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Profit is the payment business owners receive for assuming the risks of ownership.

Correct Answer
verified

Diane is passionate about soccer and decides to open her own soccer sporting goods store. She invests her money, time, and effort into making the store a success. Diane can be best described as a(n)

Correct Answer
verified

Of the following, which is not considered a basic management function necessary to be an effective manager?

Correct Answer
verified

The rivalry among businesses for sales to potential customers

Correct Answer
verified

Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work. Chris seems to value

Correct Answer
verified

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

Correct Answer
verified

The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a ____ economy.

Correct Answer
verified

All of the following would typically be considered consumer products except a

Correct Answer
verified

Amazon.com has the following rights: to make a profit for its stockholders; to market a wide variety of products; and, to compete with other online retailers. Amazon.com operates in a(n) ____ system.

Correct Answer
verified

What three activities must a business perform in order to be successful? Briefly describe each of these and why each is essential to business success.

Correct Answer
Answered by ExamLex AI
In order to be successful, a business mu...
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A copyright of a product exists indefinitely.

Correct Answer
verified

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

Correct Answer
verified

People buy goods and services simply to own them.

Correct Answer
verified

The use of the factory system in the United States helped to usher in the

Correct Answer
verified

During the 1930s, government became deeply involved in business for the first time.

Correct Answer
verified

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

Correct Answer
verified

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

Correct Answer
verified

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct?

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

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 AnswerverifiedShow Answer

Profit is the payment business owners receive for assuming the risks of ownership.

Correct AnswerverifiedShow Answer

Diane is passionate about soccer and decides to open her own soccer sporting goods store. She invests her money, time, and effort into making the store a success. Diane can be best described as a(n)

Correct AnswerverifiedShow Answer

Of the following, which is not considered a basic management function necessary to be an effective manager?

Correct AnswerverifiedShow Answer

The rivalry among businesses for sales to potential customers

Correct AnswerverifiedShow Answer

Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work. Chris seems to value

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a ____ economy.

Correct AnswerverifiedShow Answer

All of the following would typically be considered consumer products except a

Correct AnswerverifiedShow Answer

Amazon.com has the following rights: to make a profit for its stockholders; to market a wide variety of products; and, to compete with other online retailers. Amazon.com operates in a(n) ____ system.

Correct AnswerverifiedShow Answer

What three activities must a business perform in order to be successful? Briefly describe each of these and why each is essential to business success.

Correct AnswerAnswered by ExamLex AIIn order to be successful, a business mu...View AnswerShow Answer

A copyright of a product exists indefinitely.

Correct AnswerverifiedShow Answer

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

Correct AnswerverifiedShow Answer

People buy goods and services simply to own them.

Correct AnswerverifiedShow Answer

The use of the factory system in the United States helped to usher in the

Correct AnswerverifiedShow Answer

During the 1930s, government became deeply involved in business for the first time.

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

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

Correct AnswerverifiedShow Answer

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
Answered by ExamLex AI
In order to be successful, a business mu...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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