Question 1

A new feature on the latest Acme smart phone has made it wildly popular.Which action should Acme take to maximize profits?

Accepted Answer

A)  Increase the supply of the smart phone. 
B)  Decrease the supply of the smart phone. 
C)  Reduce the price of the smart phone. 
D)  Maintain the current supply until demand falls. 
E)  Create a shortage of the smart phone. 
A)  Increase the supply of the smart phone. 
B)  Decrease the supply of the smart phone. 
C)  Reduce the price of the smart phone. 
D)  Maintain the current supply until demand falls. 
E)  Create a shortage of the smart phone.

Question 2

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

Accepted Answer

Businesses are organizations that provid

Question 3

A nation's economic system is its system for allocating its resources among its citizens,both individuals and organizations.Explain how the three economic systems allocate their resources.

Accepted Answer

A nation's resources,often referred to a

Question 4

Which economic system emphasizes the private ownership of most factors of production?

Accepted Answer

A)  socialism 
B)  communism 
C)  capitalism 
D)  Marxism 
E)  federalism 
A)  socialism 
B)  communism 
C)  capitalism 
D)  Marxism 
E)  federalism

Question 5

What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?

Accepted Answer

A)  unemployment 
B)  stability 
C)  deflation 
D)  inflation 
E)  oversupply 
A)  unemployment 
B)  stability 
C)  deflation 
D)  inflation 
E)  oversupply

Question 6

In the United States,milk is produced on thousands of farms,with no producer dominating the market.Producers sell milk at the going price and are unable to influence this price.Millions of gallons of milk are purchased every day.What type of competition is the market for milk?

Accepted Answer

A)  a monopoly 
B)  an oligopoly 
C)  perfect competition 
D)  monopolistic competition 
E)  a cooperative 
A)  a monopoly 
B)  an oligopoly 
C)  perfect competition 
D)  monopolistic competition 
E)  a cooperative

Question 7

Which of the following BEST describes what the consumer price index is used to indicate?

Accepted Answer

A)  the average wage rate for a given region 
B)  the economic performance of key consumer product companies 
C)  the changes in the cost of consumer products over time 
D)  the percentage of consumers in the total population looking for work 
E)  the number of price increases within a given period of time 
A)  the average wage rate for a given region 
B)  the economic performance of key consumer product companies 
C)  the changes in the cost of consumer products over time 
D)  the percentage of consumers in the total population looking for work 
E)  the number of price increases within a given period of time

Question 8

Azucks is a socially responsible American company engaged in the manufacture of sports shoes.The CEO cautions that there is a disadvantage associated with the company planning increased globalization of production.Which of the following is the MOST likely disadvantage he is referring to?

Accepted Answer

A)  Heavy job losses can ensue in the domestic market. 
B)  Greater disparities in living standards will emerge. 
C)  Trade barriers will be reduced between countries. 
D)  Substantial job losses will occur in developing markets. 
E)  Increased competition will emerge between companies. 
A)  Heavy job losses can ensue in the domestic market. 
B)  Greater disparities in living standards will emerge. 
C)  Trade barriers will be reduced between countries. 
D)  Substantial job losses will occur in developing markets. 
E)  Increased competition will emerge between companies.

Question 9

Deflation,an indication that the economy is contracting,is characterized by price stabilization of goods.

Accepted Answer

A) True 
 B)False

Question 10

Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?

Accepted Answer

A)  standard of living 
B)  aggregate output 
C)  gross domestic product 
D)  gross national product 
E)  purchasing power parity 
A)  standard of living 
B)  aggregate output 
C)  gross domestic product 
D)  gross national product 
E)  purchasing power parity

Question 11

Inflation results in increased purchasing power for the consumer.

Accepted Answer

A) True 
 B)False

Question 12

Assuming other factors remain constant,Anon would have the most power to raise prices if Widgets were which of the following?

Accepted Answer

A)  life-saving drugs 
B)  automobiles 
C)  beverages 
D)  toys 
E)  jewelry 
A)  life-saving drugs 
B)  automobiles 
C)  beverages 
D)  toys 
E)  jewelry

Question 13

Which of the following BEST describes purchasing power parity?

Accepted Answer

A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods and services that can be purchased with one paycheck 
C)  total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation 
D)  the principle that exchange rates are set so that prices of similar products in different countries are about the same 
E)  the principle that a market economy determines supply and demand for consumer products 
A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods and services that can be purchased with one paycheck 
C)  total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation 
D)  the principle that exchange rates are set so that prices of similar products in different countries are about the same 
E)  the principle that a market economy determines supply and demand for consumer products

Question 14

Which of the following is BEST supported by the statements above?

Accepted Answer

A)  The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible. 
B)  It is generally better to confront one established competitor at a time rather than many at once. 
C)  Even when competing in a niche, a company should act in every respect as if it is targeting every market segment. 
D)  The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence. 
E)  A company's initial goals do not place limits on its long-term success. 
A)  The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible. 
B)  It is generally better to confront one established competitor at a time rather than many at once. 
C)  Even when competing in a niche, a company should act in every respect as if it is targeting every market segment. 
D)  The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence. 
E)  A company's initial goals do not place limits on its long-term success.

Question 15

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 16

How does monopolistic competition differ from perfect competition?

Accepted Answer

A)  There are more sellers in a market characterized by monopolistic competition. 
B)  It is easier for sellers to enter a market or industry characterized by monopolistic competition. 
C)  In a perfectly competitive market, products are more dissimilar. 
D)  In a market characterized by monopolistic competition, individual firms have some control over price. 
E)  In a perfectly competitive market, the size of the firms must be large. 
A)  There are more sellers in a market characterized by monopolistic competition. 
B)  It is easier for sellers to enter a market or industry characterized by monopolistic competition. 
C)  In a perfectly competitive market, products are more dissimilar. 
D)  In a market characterized by monopolistic competition, individual firms have some control over price. 
E)  In a perfectly competitive market, the size of the firms must be large.

Question 17

A financial analyst has noticed a serious rise in inflation.What course of action might the financial analyst advise the government to take in order to reduce inflation?

Accepted Answer

A)  The government can lower taxes. 
B)  The government can raise taxes. 
C)  Encourage the government to increase spending. 
D)  Encourage consumers to increase spending. 
E)  Encourage the government to increase spending and lower taxes. 
A)  The government can lower taxes. 
B)  The government can raise taxes. 
C)  Encourage the government to increase spending. 
D)  Encourage consumers to increase spending. 
E)  Encourage the government to increase spending and lower taxes.

Question 18

A city of 150,000 people has a large commercial sector bringing in businesses from the surrounding region.In 2007,there was 2.75 million square feet of commercial space available.Five years later,after a building boom,there was 5.5 million square feet of commercial space available. Which effect will MOST likely occur?

Accepted Answer

A)  The equilibrium price of commercial real estate will not be affected. 
B)  The increase in the supply of commercial real estate will lead to a corresponding increase in its price. 
C)  The price of commercial real estate will decrease, absent a dramatic increase in demand. 
D)  The increase in the supply of commercial real estate will lead to an increase in resource prices. 
E)  The increase in supply will cause a corresponding increase in demand. 
A)  The equilibrium price of commercial real estate will not be affected. 
B)  The increase in the supply of commercial real estate will lead to a corresponding increase in its price. 
C)  The price of commercial real estate will decrease, absent a dramatic increase in demand. 
D)  The increase in the supply of commercial real estate will lead to an increase in resource prices. 
E)  The increase in supply will cause a corresponding increase in demand.

Question 19

Which of the following BEST gives the meaning of the term business cycle?

Accepted Answer

A)  the conditions of the economic system in which an organization operates 
B)  the total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
C)  the measure of economic growth that compares how much a system produces with the resources needed to produce it 
D)  the number of businesses started during a given time period 
E)  the pattern of short-term ups and downs in an economy 
A)  the conditions of the economic system in which an organization operates 
B)  the total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
C)  the measure of economic growth that compares how much a system produces with the resources needed to produce it 
D)  the number of businesses started during a given time period 
E)  the pattern of short-term ups and downs in an economy

Question 20

The consumer price index is expressed as a percentage of prices as compared to a base period.

Accepted Answer

A) True 
 B)False

A new feature on the latest Acme smart phone has made it wildly popular.Which action should Acme take to maximize profits?

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

A nation's economic system is its system for allocating its resources among its citizens,both individuals and organizations.Explain how the three economic systems allocate their resources.

Which economic system emphasizes the private ownership of most factors of production?

What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?

In the United States,milk is produced on thousands of farms,with no producer dominating the market.Producers sell milk at the going price and are unable to influence this price.Millions of gallons of milk are purchased every day.What type of competition is the market for milk?

Which of the following BEST describes what the consumer price index is used to indicate?

Azucks is a socially responsible American company engaged in the manufacture of sports shoes.The CEO cautions that there is a disadvantage associated with the company planning increased globalization of production.Which of the following is the MOST likely disadvantage he is referring to?

Deflation,an indication that the economy is contracting,is characterized by price stabilization of goods.

Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?

Inflation results in increased purchasing power for the consumer.

Assuming other factors remain constant,Anon would have the most power to raise prices if Widgets were which of the following?

Which of the following BEST describes purchasing power parity?

Which of the following is BEST supported by the statements above?

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

How does monopolistic competition differ from perfect competition?

A financial analyst has noticed a serious rise in inflation.What course of action might the financial analyst advise the government to take in order to reduce inflation?

Which of the following BEST gives the meaning of the term business cycle?

The consumer price index is expressed as a percentage of prices as compared to a base period.

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 for Producing Goods and Services

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

Exam 1: The U.S.Business Environment

A new feature on the latest Acme smart phone has made it wildly popular.Which action should Acme take to maximize profits?

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

A nation's economic system is its system for allocating its resources among its citizens,both individuals and organizations.Explain how the three economic systems allocate their resources.

Which economic system emphasizes the private ownership of most factors of production?

What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?

In the United States,milk is produced on thousands of farms,with no producer dominating the market.Producers sell milk at the going price and are unable to influence this price.Millions of gallons of milk are purchased every day.What type of competition is the market for milk?

Which of the following BEST describes what the consumer price index is used to indicate?

Azucks is a socially responsible American company engaged in the manufacture of sports shoes.The CEO cautions that there is a disadvantage associated with the company planning increased globalization of production.Which of the following is the MOST likely disadvantage he is referring to?

Deflation,an indication that the economy is contracting,is characterized by price stabilization of goods.

Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?

Inflation results in increased purchasing power for the consumer.

Assuming other factors remain constant,Anon would have the most power to raise prices if Widgets were which of the following?

Which of the following BEST describes purchasing power parity?

Which of the following is BEST supported by the statements above?

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

How does monopolistic competition differ from perfect competition?

A financial analyst has noticed a serious rise in inflation.What course of action might the financial analyst advise the government to take in order to reduce inflation?

Which of the following BEST gives the meaning of the term business cycle?

The consumer price index is expressed as a percentage of prices as compared to a base period.

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 for Producing Goods and Services

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