Question 1

In Adam Smith's view, which of the following is not the role of government in business?

Accepted Answer

A)   Providing defense against foreign governments
B)   Regulating business activity
C)   Ensuring internal order
D)   Furnishing public works
E)   Providing educationF) All of the above
G) A) and C)

Question 2

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines. This transaction is an example of

Accepted Answer

A)   barter.
B)   ancient trading.
C)   the domestic system.
D)   the factory system.
E)   an unequal exchange of goods.F) D) and E)
G) None of the above

Question 3

Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views of the Rocky Mountains. He obtains a loan and purchases the necessary land, facilities, advertising, and five helicopters for his business. What important factor of production has he overlooked in creating his business?

Accepted Answer

A)   Equipment
B)   Capital
C)   Labor
D)   Entrepreneurship
E)   Natural resourcesF) A) and D)
G) C) and D)

Question 4

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a ____ economy.

Accepted Answer

A)   command
B)   capitalistic
C)   mixed
D)   laissez-faire
E)   communalF) C) and E)
G) A) and B)

Question 5

Consumers exchange tax money to purchase goods and services.

Accepted Answer

A) True 
 B)False

Question 6

The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deemed an important management trait.

Accepted Answer

A)   interpersonal skills
B)   conceptual skills
C)   leading and motivating functions
D)   mechanical skills
E)   controlling functionsF) C) and D)
G) B) and D)

Question 7

The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

Accepted Answer

A)   business.
B)   economy.
C)   entrepreneurship.
D)   e-business.
E)   e-marketing.F) A) and E)
G) C) and E)

Question 8

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following situations is most likely to increase the United States' productivity?

Accepted Answer

A)   Increased number of people in the workforce
B)   Decreased production of goods
C)   Increase in economic activity being transferred to the Internet
D)   More corporations being split up into smaller divisions
E)   More unemployment benefitsF) B) and D)
G) B) and C)

Question 10

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)   gross domestic product.
C)   gross national product.
D)   inflation factor.
E)   standard of living.F) C) and E)
G) A) and B)

Question 11

Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a nation's economy.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a characteristic of an oligopoly?

Accepted Answer

A)   There are few sellers.
B)   The seller has considerable control over price.
C)   Any duplication of facilities is wasteful.
D)   Sizable investments are required to enter the market.
E)   The market actions of each seller can strongly affect other sellers.F) All of the above
G) None of the above

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

Question 14

Service businesses employ approximately ___ percent of the U.S. work force.

Accepted Answer

A)   40
B)   50
C)   65
D)   75
E)   85F) A) and B)
G) B) and E)

Question 15

A depression is a severe recession that lasts longer than a recession.

Accepted Answer

A) True 
 B)False

Question 16

Because of technology and the Internet, the use of information by business managers has increased.

Accepted Answer

A) True 
 B)False

Question 17

As the founder of an American business firm, Mark Pincus can, within certain limits, produce and/or sell any product or service that he chooses and it at any price.

Accepted Answer

A) True 
 B)False

Question 18

Organizations that combine raw materials, machinery, and labor to produce goods are called

Accepted Answer

A)   manufacturing businesses.
B)   service businesses.
C)   merchandisers.
D)   market intermediaries.
E)   processors.F) A) and B)
G) All of the above

Question 19

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

Accepted Answer

A)   Individuals are selected to fill certain positions within the economy of their nation according to the needs of the nation as a whole.
B)   Markets are carefully regulated to ensure that all individuals within a nation are treated fairly and charged standardized prices.
C)   A country only has a limited amount of space for college students and uses a type of lottery system to determine who gets these spaces.
D)   Government scarcely exists in this country, and transactions are based on a system of barter, or trading goods, for other goods.
E)   Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.F) A) and B)
G) B) and C)

Question 20

When General Mills and a few other firms dominate the American cereal market, this is an example of

Accepted Answer

A)   pure competition.
B)   monopolistic competition.
C)   oligopoly.
D)   natural monopoly.
E)   monopoly.F) A) and C)
G) A) and B)

Exam 1: Exploring the World of Business and Economics

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines. This transaction is an example of

Correct Answer
verified

Organizations that combine raw materials, machinery, and labor to produce goods are called

Correct Answer
verified

Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a nation's economy.

Correct Answer
verified

Which of the following situations is most likely to increase the United States' productivity?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not a characteristic of an oligopoly?

Correct Answer
verified

A depression is a severe recession that lasts longer than a recession.

Correct Answer
verified

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a ____ economy.

Correct Answer
verified

Service businesses employ approximately ___ percent of the U.S. work force.

Correct Answer
verified

The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

Correct Answer
verified

Correct Answer
verified

When General Mills and a few other firms dominate the American cereal market, this is an example of

Correct Answer
verified

As the founder of an American business firm, Mark Pincus can, within certain limits, produce and/or sell any product or service that he chooses and it at any price.

Correct Answer
verified

Because of technology and the Internet, the use of information by business managers has increased.

Correct Answer
verified

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

Correct Answer
verified

In Adam Smith's view, which of the following is not the role of government in business?

Correct Answer
verified

The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deemed an important management trait.

Correct Answer
verified

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

Correct Answer
verified

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

Correct Answer
verified

Consumers exchange tax money to purchase goods and services.

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines. This transaction is an example of

Correct AnswerverifiedShow Answer

Organizations that combine raw materials, machinery, and labor to produce goods are called

Correct AnswerverifiedShow Answer

Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a nation's economy.

Correct AnswerverifiedShow Answer

Which of the following situations is most likely to increase the United States' productivity?

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

Which of the following is not a characteristic of an oligopoly?

Correct AnswerverifiedShow Answer

A depression is a severe recession that lasts longer than a recession.

Correct AnswerverifiedShow Answer

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a ____ economy.

Correct AnswerverifiedShow Answer

Service businesses employ approximately ___ percent of the U.S. work force.

Correct AnswerverifiedShow Answer

The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When General Mills and a few other firms dominate the American cereal market, this is an example of

Correct AnswerverifiedShow Answer

As the founder of an American business firm, Mark Pincus can, within certain limits, produce and/or sell any product or service that he chooses and it at any price.

Correct AnswerverifiedShow Answer

Because of technology and the Internet, the use of information by business managers has increased.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In Adam Smith's view, which of the following is not the role of government in business?

Correct AnswerverifiedShow Answer

The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deemed an important management trait.

Correct AnswerverifiedShow Answer

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

Correct AnswerverifiedShow Answer

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

Correct AnswerverifiedShow Answer

Consumers exchange tax money to purchase goods and services.

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