Exam 1: The Foundations of Business

The U.S.government uses _____ policy regulate the money supply and interest rates.

Supply is the quantity of a product that sellers are willing to sell at various prices.

A monopoly exists when there is only one seller in the market.

If the quantity demanded for cars is lower than the quantity supplied,we can expect that:

All of the following are best categorized as _____: Harvard University,the American Red Cross and American Institute of Certified Public Accountants.

Demand is the quantity of product that buyers are willing to purchase at various prices.

A typical business cycle can last much longer than three to five years.

_____ study the interactions between households and businesses and the ways in which the factors of production are combined to produce goods and services.

We call it "full employment" when _____ percent of those who want to work are employed.

All the activities needed to operate a business can be divided into the three functional areas of accounting,operations,and marketing.

General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Cadillac, and GMC trucks are among the company’s product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines. -If the automobile industry included many rather than few manufacturers of differentiated their products,we might conclude that it was characterized by _____ conditions.

Fiscal policy relies on the government's powers of _____.

New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products. -New Age will be more willing to develop new products when prices are on the rise and less willing when they're coming down.

Because they operate in a(n)_____ industry,a fare decrease at American Airlines will likely result in decreases at other carriers.

To assess whether inflation is going up or going down,economists look at changes in (select one):

Legal monopolies exist in industries requiring huge investments and in which it would be inefficient to duplicate the products that they provide.

In calculating gross domestic product (GDP),the U.S.government does not include the following: (select one)

The sole regional supplier of Gasanol,a fuel made of gasoline and soy oil,operates in a(n)_____ market.

Which of the following is an example of a service company?

If the government spends more than it takes in,we have a budget _____.