Question 1

Which of the following supports the idea that the prices of similar products in different countries should be about the same?

Accepted Answer

A)  Standard of living 
B)  Real growth rate 
C)  Purchasing power parity 
D)  Trade deficit 
E)  Balance of trade 
A)  Standard of living 
B)  Real growth rate 
C)  Purchasing power parity 
D)  Trade deficit 
E)  Balance of trade C

Question 2

Which of the following best explains the difference between a market economy and a planned economy?

Accepted Answer

A)  In a planned economy, consumers have little choice in where they work or what they purchase or pay. 
B)  In a market economy, consumers must pay what the market demands. 
C)  Capitalism is the root of a planned economy. 
D)  Market economies are also known as mixed market economies. 
E)  Planned economies promote the use of privatization to increase market share. 
A)  In a planned economy, consumers have little choice in where they work or what they purchase or pay. 
B)  In a market economy, consumers must pay what the market demands. 
C)  Capitalism is the root of a planned economy. 
D)  Market economies are also known as mixed market economies. 
E)  Planned economies promote the use of privatization to increase market share. A

Question 3

What is profit?

Accepted Answer

A)  Total money taken in by a corporation 
B)  Increases in income from year to year 
C)  Increases in a corporation's stock price 
D)  Revenue generated by goods and services 
E)  Difference between revenues and expenses 
A)  Total money taken in by a corporation 
B)  Increases in income from year to year 
C)  Increases in a corporation's stock price 
D)  Revenue generated by goods and services 
E)  Difference between revenues and expenses E

Question 4

Why is gross national product (GNP)considered to be a less valuable indicator of domestic economic performance than gross domestic product (GDP)?

Accepted Answer

A)  GNP does not consider where the economic performance was located. 
B)  GNP only considers economic performance within the United States. 
C)  GNP is not adjusted for inflation. 
D)  GNP does not consider currency fluctuations at the time of product purchase. 
E)  GNP does not compare output to population rates. 
A)  GNP does not consider where the economic performance was located. 
B)  GNP only considers economic performance within the United States. 
C)  GNP is not adjusted for inflation. 
D)  GNP does not consider currency fluctuations at the time of product purchase. 
E)  GNP does not compare output to population rates.

Question 5

Why would a government MOST likely be concerned about its country carrying a trade deficit?

Accepted Answer

A)  A trade deficit means that the country's productivity is low. 
B)  A trade deficit means local companies do not have enough competition. 
C)  A trade deficit ties up money that could be used for economic growth. 
D)  A trade deficit decreases demand for goods overall. 
E)  A trade deficit means that consumers do not have enough purchasing power. 
A)  A trade deficit means that the country's productivity is low. 
B)  A trade deficit means local companies do not have enough competition. 
C)  A trade deficit ties up money that could be used for economic growth. 
D)  A trade deficit decreases demand for goods overall. 
E)  A trade deficit means that consumers do not have enough purchasing power.

Question 6

What is required for perfect competition to exist, and what principles must be in place to achieve those conditions?

Accepted Answer

For perfect competition to exist, two co

Question 7

In a natural monopoly, prices tend to be government regulated.

Accepted Answer

A) True 
 B)False

Question 8

In the United States, the Federal Reserve System, which is the nation's central bank, can influence the ability and willingness of banks to lend money.

Accepted Answer

A) True 
 B)False

Question 9

When a new product has high demand in the market, how should a company react?

Accepted Answer

A)  Increase the supply of the product. 
B)  Decrease the supply of the product. 
C)  Reduce the price of the product. 
D)  Maintain the current supply until demand falls. 
E)  Create an artificial shortage of the product. 
A)  Increase the supply of the product. 
B)  Decrease the supply of the product. 
C)  Reduce the price of the product. 
D)  Maintain the current supply until demand falls. 
E)  Create an artificial shortage of the product.

Question 10

If productivity increases, prices charged to consumers will tend to increase as well.

Accepted Answer

A) True 
 B)False

Question 11

What occurs when the quantity demanded exceeds the quantity supplied?

Accepted Answer

A)  Demand deficit 
B)  Surplus 
C)  Equilibrium point 
D)  Shortage 
E)  Supply schedule 
A)  Demand deficit 
B)  Surplus 
C)  Equilibrium point 
D)  Shortage 
E)  Supply schedule

Question 12

What is the point at which the supply curve and the demand curve intersect on a graph?

Accepted Answer

A)  Equilibrium price 
B)  Decision point 
C)  Surplus price 
D)  Perfect price 
E)  Parity point 
A)  Equilibrium price 
B)  Decision point 
C)  Surplus price 
D)  Perfect price 
E)  Parity point

Question 13

What is the environment where a firm conducts business known as?

Accepted Answer

A)  Global business environment 
B)  Economic environment 
C)  Domestic business environment 
D)  Technological environment 
E)  Political-legal environment 
A)  Global business environment 
B)  Economic environment 
C)  Domestic business environment 
D)  Technological environment 
E)  Political-legal environment

Question 14

Which is the BEST explanation for why standard of living only increases through productivity?

Accepted Answer

A)  The more goods that are available, the lower prices will be. 
B)  More goods are available without having to come by additional resources. 
C)  Productivity increases the money supply in an economy. 
D)  Purchasing power increases when there is more consumer choice. 
E)  Prices are determined by the standard of living. 
A)  The more goods that are available, the lower prices will be. 
B)  More goods are available without having to come by additional resources. 
C)  Productivity increases the money supply in an economy. 
D)  Purchasing power increases when there is more consumer choice. 
E)  Prices are determined by the standard of living.

Question 15

Compare a sociocultural environment to an economic environment.

Accepted Answer

The sociocultural environment includes t

Question 16

What is created when one company is able to supply all the goods or services needed by the marketplace?

Accepted Answer

A)  Communism 
B)  Natural monopolies 
C)  Marketplace shifts 
D)  Monopolistic competition 
E)  Oligopolies 
A)  Communism 
B)  Natural monopolies 
C)  Marketplace shifts 
D)  Monopolistic competition 
E)  Oligopolies

Question 17

Tax increases and decreases are a form of fiscal policy.

Accepted Answer

A) True 
 B)False

Question 18

When economists measure gross national product, what is being measured within a specific time period, regardless of location?

Accepted Answer

A)  The aggregate output 
B)  The economic growth of the nation 
C)  The growth of domestic factors of production 
D)  The growth rate adjusted for inflation 
E)  The total value of all goods and services 
A)  The aggregate output 
B)  The economic growth of the nation 
C)  The growth of domestic factors of production 
D)  The growth rate adjusted for inflation 
E)  The total value of all goods and services

Question 19

Which of the following does NOT fall into the degrees of competition continuum?

Accepted Answer

A)  Perfect competition 
B)  Monopolistic competition 
C)  Competitive advantage 
D)  Oligopoly 
E)  Monopoly 
A)  Perfect competition 
B)  Monopolistic competition 
C)  Competitive advantage 
D)  Oligopoly 
E)  Monopoly

Question 20

Where can a firm find statistical information on the strength and performance of an economy?

Accepted Answer

A)  Aggregate output 
B)  Business cycle reports 
C)  Economic indicators 
D)  Standard of living indexes 
E)  Gross domestic product 
A)  Aggregate output 
B)  Business cycle reports 
C)  Economic indicators 
D)  Standard of living indexes 
E)  Gross domestic product

Which of the following supports the idea that the prices of similar products in different countries should be about the same?

Which of the following best explains the difference between a market economy and a planned economy?

What is profit?

Why is gross national product (GNP)considered to be a less valuable indicator of domestic economic performance than gross domestic product (GDP)?

Why would a government MOST likely be concerned about its country carrying a trade deficit?

What is required for perfect competition to exist, and what principles must be in place to achieve those conditions?

In a natural monopoly, prices tend to be government regulated.

In the United States, the Federal Reserve System, which is the nation's central bank, can influence the ability and willingness of banks to lend money.

When a new product has high demand in the market, how should a company react?

If productivity increases, prices charged to consumers will tend to increase as well.

What occurs when the quantity demanded exceeds the quantity supplied?

What is the point at which the supply curve and the demand curve intersect on a graph?

What is the environment where a firm conducts business known as?

Which is the BEST explanation for why standard of living only increases through productivity?

Compare a sociocultural environment to an economic environment.

What is created when one company is able to supply all the goods or services needed by the marketplace?

Tax increases and decreases are a form of fiscal policy.

When economists measure gross national product, what is being measured within a specific time period, regardless of location?

Which of the following does NOT fall into the degrees of competition continuum?

Where can a firm find statistical information on the strength and performance of an economy?

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

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Exam 1: The U.S. Business Environment

Which of the following supports the idea that the prices of similar products in different countries should be about the same?

Which of the following best explains the difference between a market economy and a planned economy?

What is profit?

Why is gross national product (GNP)considered to be a less valuable indicator of domestic economic performance than gross domestic product (GDP)?

Why would a government MOST likely be concerned about its country carrying a trade deficit?

What is required for perfect competition to exist, and what principles must be in place to achieve those conditions?

In a natural monopoly, prices tend to be government regulated.

In the United States, the Federal Reserve System, which is the nation's central bank, can influence the ability and willingness of banks to lend money.

When a new product has high demand in the market, how should a company react?

If productivity increases, prices charged to consumers will tend to increase as well.

What occurs when the quantity demanded exceeds the quantity supplied?

What is the point at which the supply curve and the demand curve intersect on a graph?

What is the environment where a firm conducts business known as?

Which is the BEST explanation for why standard of living only increases through productivity?

Compare a sociocultural environment to an economic environment.

What is created when one company is able to supply all the goods or services needed by the marketplace?

Tax increases and decreases are a form of fiscal policy.

When economists measure gross national product, what is being measured within a specific time period, regardless of location?

Which of the following does NOT fall into the degrees of competition continuum?

Where can a firm find statistical information on the strength and performance of an economy?

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters