Exam 2: The Environment of Business

Which country has the highest GDP per capita? Brazil Canada Qatar Luxembourg United States

Mark is out of work because he lacks the skills needed to perform jobs that are available. He is experiencing cyclical unemployment.

Company A and Company F have been in direct competition for many years. Recently, an announcement was made of a merger between the two companies. This would be a reverse merger. joint venture. vertical merger. friendly takeover. horizontal merger.

Luxembourg has a higher per capita GDP than any other country in the world.

Which organization has proposed what they believe is a more realistic measure than GNP or GDP to assess economic activity? What have they called this measure? How does it provide a more realistic measure?

GDP includes the total value of goods and services produced within a given period by a national economy through domestic factors of production.

Canada usually has a ______ balance of trade. It is therefore a ________ nation rather than a ________ nation. positive; creditor; debtor negative; debtor; creditor positive; debtor; creditor negative; creditor; debtor none of the above

The standard of living in a country improves through increases in the money supply.

What are three factors that threaten stability? Purchasing power parity, productivity, and inflation Productivity, inflation, and deflation Purchasing power parity, inflation, and deflation Inflation, deflation, and unemployment Productivity, unemployment, and inflation

Which of the following best describes viral marketing? The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries The strategy of owning the means by which an organization produces goods or services Any activity that adds value to some input by transforming it into an output for an internal or external customer The strategy of using the internet and word-of-mouth marketing to spread product information

When unemployment is low, employers will tend to reduce the prices of their products.

In an acquisition, one firm simply buys another firm, whereas in a merger the consolidation is more collaborative.