Question 1

To compare the productivity of the United States to that of Japan, one should examine their respective

Accepted Answer

A)   defense budgets.
B)   trade deficits.
C)   gross domestic products.
D)   stock markets' performance.
E)   consumer price indices.F) D) and E)
G) A) and B)

Question 2

When the U.S. government spends more than it receives within a fiscal year, this is called the

Accepted Answer

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

Question 3

How does socialism differ from communism?

Accepted Answer

Socialism and communism are both politic...

Question 4

The government uses tax dollars to

Accepted Answer

A)   invest in foreign bonds.
B)   invest in foreign corporations.
C)   purchase resources and products needed to provide services.
D)   purchase other nations.
E)   increase consumer income.F) A) and D)
G) B) and E)

Question 5

For the U.S. government to provide services, it collects revenue from

Accepted Answer

A)   only individuals in the form of taxes.
B)   only corporations in the form of taxes.
C)   selling bonds to foreign governments.
D)   both households and businesses in various forms of taxes.
E)   selling manufactured goods overseas.F) B) and E)
G) B) and D)

Question 6

At the end of the year, an individual, small business owner has made $65,000 in profit. Who does that profit belong to?

Accepted Answer

A)   The company's CEO and top managers
B)   The banks from which the business borrowed money
C)   All employees of the small business
D)   The consumers of the business' products
E)   The owner of the businessF) A) and C)
G) A) and D)

Question 7

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

Accepted Answer

A)   Best Buy
B)   Sony
C)   Walmart
D)   Zynga
E)   Amazon.comF) A) and B)
G) A) and C)

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) C) and D)
G) D) and E)

Question 9

Fewer workers producing more goods and services can lead to higher overall employment rates.

Accepted Answer

A) True 
 B)False

Question 10

____ is the process of developing and promoting the differences between one's products and other similar products.

Accepted Answer

A)   Advertising
B)   Monopolistic competition
C)   Product differentiation
D)   Branding
E)   Goods distinctionF) B) and E)
G) B) and C)

Question 11

The production and operations manager at a large shoe factory in Fall River, Massachusetts, notices that the total number of hours worked by production employees has increased 12 percent, while the number of pairs of shoes ready for shipping has dropped 6 percent this year over last year. This means

Accepted Answer

A)   the inflation rate is unchanged.
B)   the demand for shoes is decreasing.
C)   the manager's calculations cannot be correct.
D)   productivity has decreased.
E)   the gross national product has increased by 6 percent.F) All of the above
G) B) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is most aligned with the Occupy Wall Street protests?

Accepted Answer

A)   Reducing inequality of income and wealth
B)   Reducing the number of home foreclosures
C)   Fortifying Wall Street firms
D)   Increasing the national debt
E)   Increasing the rate and depth of federal stimulus plansF) A) and B)
G) A) and E)

Question 14

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 production.F) A) and B)
G) C) and E)

Question 15

Explain how the notion of scarcity is related to personal as well as business decision making.

Accepted Answer

The notion of scarcity is related to per...

Question 16

After getting her bachelor's degree in business, Mary Wilson realized she was much more productive at her job than she had been before. Mary's degree helped her to become a better employee.

Accepted Answer

A) True 
 B)False

Question 17

The ultimate objective of every firm, such as Intel, Chevrolet, and Sony 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) C) and D)
G) B) and C)

Question 18

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

Accepted Answer

A) True 
 B)False

Question 19

As Rachel Smith and her friends prepare to graduate from college, they are faced with numerous job offers with starting salaries better than they could have imagined when they began college four years ago. Based on this information, which stage of the business cycle would the economy be in?

Accepted Answer

A)   Depression
B)   Peak
C)   Recession
D)   Trough
E)   RecoveryF) A) and B)
G) All of the above

Question 20

What is the difference between monetary policies and fiscal policies? How does each affect the nation's economy?

Accepted Answer

Monetary policies and fiscal policies ar...

Exam 1: Exploring the World of Business and Economics

To compare the productivity of the United States to that of Japan, one should examine their respective

Correct AnswerverifiedShow Answer

Which of the following is most aligned with the Occupy Wall Street protests?

Correct AnswerverifiedShow Answer

What is the difference between monetary policies and fiscal policies? How does each affect the nation's economy?

Correct AnswerAnswered by ExamLex AIMonetary policies and fiscal policies ar...View AnswerShow Answer

For the U.S. government to provide services, it collects revenue from

Correct AnswerverifiedShow Answer

Fewer workers producing more goods and services can lead to higher overall employment rates.

Correct AnswerverifiedShow Answer

As Rachel Smith and her friends prepare to graduate from college, they are faced with numerous job offers with starting salaries better than they could have imagined when they began college four years ago. Based on this information, which stage of the business cycle would the economy be in?

Correct AnswerverifiedShow Answer

After getting her bachelor's degree in business, Mary Wilson realized she was much more productive at her job than she had been before. Mary's degree helped her to become a better employee.

Correct AnswerverifiedShow Answer

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

Correct AnswerverifiedShow Answer

____ is the process of developing and promoting the differences between one's products and other similar products.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The ultimate objective of every firm, such as Intel, Chevrolet, and Sony must be to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How does socialism differ from communism?

Correct AnswerAnswered by ExamLex AISocialism and communism are both politic...View AnswerShow Answer

When the U.S. government spends more than it receives within a fiscal year, this is called the

Correct AnswerverifiedShow Answer

At the end of the year, an individual, small business owner has made $65,000 in profit. Who does that profit belong to?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The government uses tax dollars to

Correct AnswerverifiedShow Answer

Explain how the notion of scarcity is related to personal as well as business decision making.

Correct AnswerAnswered by ExamLex AIThe notion of scarcity is related to per...View AnswerShow Answer

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Monetary policies and fiscal policies ar...
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Socialism and communism are both politic...
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Answered by ExamLex AI
The notion of scarcity is related to per...
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