Question 1

Although all casual clothing ultimately provides the same purpose,companies such as The Gap strive to make their brand seem unique from the many other brands available on the market.The market for casual clothing can best be characterized as

Accepted Answer

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

Question 2

According to economists,inflation is

Accepted Answer

A)   a general decrease in the level of prices.
B)   a general rise in the level of prices.
C)   unavoidable,and therefore something beyond the control of government.
D)   eliminated by the government.
E)   a general problem for countries with command economies.F) D) and E)
G) B) and C)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Fred Sanchez owns and operates his own small automobile repair shop.However,the prices he can charge are fixed,and he rents his land and building from the government.Most of his friends work for industries owned by the government.Fred's country is most likely a(n) ____ economy.

Accepted Answer

A)   market
B)   communist
C)   socialist
D)   industrialized
E)   capitalistF) A) and E)
G) A) and D)

Question 5

Zoe,geologist,has discovered a new mineral which she named brellio.She believes that it can be used to generate clean energy.The mineral is much like uranium and can be used to create energy without the harmful radiation side-effects.What factors of production will she use to mine the mineral and establish her energy business?

Accepted Answer

A)   Land and natural resources,labor,capital,and entrepreneurship.
B)   Natural resources,political associations,and capital.
C)   Labor,advertising,and capital.
D)   Entrepreneurship,labor,and ethics.E) All of the above
F) B) and D)

Question 6

Which economist has been called the father of communism?

Accepted Answer

A)   Adam Smith
B)   Fidel Castro
C)   Mark Cuban
D)   Karl Marx
E)   Alan GreenspanF) None of the above
G) A) and B)

Question 7

Andy is interested in investing in the stock market,but having studied the Great Depression in school,she is afraid she could lose all of her money.She reads through the finance pages of the newspaper and sees that unemployment has dropped to the lowest level it has been in the past ten years,new businesses are opening,housing sales are up because interest rates are level,and the national debt is decreasing.If the economy is her only concern about buying stock,should she buy stock?

Accepted Answer

A)   The level of unemployment,the rise in new business starts,the increase in housing sales,and the decrease in national debt indicate that the economy is growing so it would be a good time to buy stock.
B)   In spite of all of the positive indicators,it is never a good time to buy stock.
C)   The stock market works independent of unemployment,business starts,housing sales,and the level of the national debt so these things will not influence the rise or fall of the market.
D)   Andy should not base her decision to buy stock on the factors indicated,she should base it solely on the consumer price index.E) A) and B)
F) A) and C)

Question 8

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)   recession.
E)   depression.F) C) and D)
G) B) and C)

Question 9

Which of the following statements is false?

Accepted Answer

A)   One way to reduce costs is to increase productivity.
B)   Increased productivity can lead to higher manufacturing costs.
C)   Increased productivity is a concern for nations throughout the world.
D)   Productivity is expected to improve as more economic activity is transferred to the Internet.
E)   Productivity growth enables American business firms to compete more effectively with other nations in a competitive world.F) C) and D)
G) A) and B)

Question 10

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) A) and E)

Question 11

Which of the following would not be included in the gross domestic product of the United States?

Accepted Answer

A)   Value of tax return services performed by H&R Block,U.S.locations
B)   Value of BMW automobiles manufactured in Alabama
C)   Total value of Procter & Gamble products produced in Michigan
D)   Value of medical care services rendered in the United States
E)   Value of McDonald's sales for their Tokyo locationsF) A) and E)
G) A) and D)

Question 12

An entrepreneur combines four kinds of resources into a business.What would be the effect on the business if any one were left out?

Accepted Answer

The four kinds of resources include mate...

Question 13

Cultural diversity represents

Accepted Answer

A)   a business theory that is no longer valid.
B)   the differences among people in a workforce.
C)   a technical skill.
D)   a statistical method used to project sales revenues and profits for global companies.
E)   a religious issue that doesn't affect business organizations.F) C) and E)
G) A) and B)

Question 14

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

Question 15

All except ____ are considered important,major events that shaped the nation's economy during the period of 1940 to 2000.

Accepted Answer

A)   the Korean War
B)   the institution of Franklin D.Roosevelt's federal government programs
C)   the shortage of crude oil
D)   high inflation with high interest rates and reduced business profits
E)   the Vietnam WarF) A) and B)
G) A) and D)

Question 16

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

Question 17

Which of the following is not a characterization of a depression?

Accepted Answer

A)   High unemployment rates
B)   Lower stock values
C)   two or more consecutive three-month periods of GDP decline
D)   General decrease in business activity
E)   General lack of confidence in the economy by members of the populationF) B) and C)
G) A) and E)

Question 18

Today,managers and employees are no longer concerned about cultural diversity.

Accepted Answer

A) True 
 B)False

Question 19

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) B) and D)
G) C) and D)

Question 20

When consumers spend their money to purchase Samsung android phones or computers with an Intel processor,or when they discontinue buying such items as compact discs,they are telling resource owners

Accepted Answer

A)   how to produce.
B)   for whom to produce.
C)   what to produce.
D)   when to produce.
E)   to avoid faddish products.F) B) and C)
G) C) and E)

Exam 1: Exploring the World of Business and Economics

Cultural diversity represents

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

All except ____ are considered important,major events that shaped the nation's economy during the period of 1940 to 2000.

Correct Answer
verified

Which of the following is not a characterization of a depression?

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Fred Sanchez owns and operates his own small automobile repair shop.However,the prices he can charge are fixed,and he rents his land and building from the government.Most of his friends work for industries owned by the government.Fred's country is most likely a(n) ____ economy.

Correct Answer
verified

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

Correct Answer
verified

Perfect competition is characterized by

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

Which economist has been called the father of communism?

Correct Answer
verified

Correct Answer
verified

An entrepreneur combines four kinds of resources into a business.What would be the effect on the business if any one were left out?

Correct Answer
verified
The four kinds of resources include mate...
View Answer

Which of the following would not be included in the gross domestic product of the United States?

Correct Answer
verified

When consumers spend their money to purchase Samsung android phones or computers with an Intel processor,or when they discontinue buying such items as compact discs,they are telling resource owners

Correct Answer
verified

Although all casual clothing ultimately provides the same purpose,companies such as The Gap strive to make their brand seem unique from the many other brands available on the market.The market for casual clothing can best be characterized as

Correct Answer
verified

According to economists,inflation is

Correct Answer
verified

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

Correct Answer
verified

Today,managers and employees are no longer concerned about cultural diversity.

Correct Answer
verified

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

Cultural diversity represents

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All except ____ are considered important,major events that shaped the nation's economy during the period of 1940 to 2000.

Correct AnswerverifiedShow Answer

Which of the following is not a characterization of a depression?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Fred Sanchez owns and operates his own small automobile repair shop.However,the prices he can charge are fixed,and he rents his land and building from the government.Most of his friends work for industries owned by the government.Fred's country is most likely a(n) ____ economy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Perfect competition is characterized by

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

Which economist has been called the father of communism?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An entrepreneur combines four kinds of resources into a business.What would be the effect on the business if any one were left out?

Correct AnswerverifiedThe four kinds of resources include mate...View AnswerShow Answer

Which of the following would not be included in the gross domestic product of the United States?

Correct AnswerverifiedShow Answer

When consumers spend their money to purchase Samsung android phones or computers with an Intel processor,or when they discontinue buying such items as compact discs,they are telling resource owners

Correct AnswerverifiedShow Answer

Although all casual clothing ultimately provides the same purpose,companies such as The Gap strive to make their brand seem unique from the many other brands available on the market.The market for casual clothing can best be characterized as

Correct AnswerverifiedShow Answer

According to economists,inflation is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Today,managers and employees are no longer concerned about cultural diversity.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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The four kinds of resources include mate...
View Answer

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