Exam 1: Introduction to Business

Which of the following is not a feature of laissez-faire capitalism?

Satellite Communications Jonathan worked for Satellite Communications for twenty years.In the time that he worked there, he learned a lot about the company and how it operated.The company met its sales and revenue goals every year.However, most of the employees had similar educational and cultural backgrounds.He believed that the company could do much better if it cultivated an environment that promoted many different ideas.Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year.Jonathan felt that the most important goal should be to satisfy customers.He believed financial success would result from focusing on customers. After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about what his company would produce and how.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success. -Refer to Satellite Communications.Jonathan is operating in a ____ because he has the opportunity to decide what and how to do things.

Economics is the study of how wealth is created and distributed.

Deflation

Diane is passionate about soccer and decides to open her own soccer sporting goods store.She invests her money, time, and effort into making the store a success.Diane can be best described as a(n)

Because e-businesses use the Internet, there is no need to meet the needs of their customers.

The separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals is called

The ultimate objective of every firm, such as Intel, Chevrolet, and Sony must be to

____ is a necessary and extremely important by-product of free enterprise.

Approximately what portion of our nation's total production is made up of consumer goods?

The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are willing to purchase.

The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.

As the price of jeans rises, manufacturers that make and sell jeans are likely to

If the demand for a product declines, what happens to the price of the product?

Ways in which consumers affect a nation's business include all the following except

The government uses tax money to

Which of the following issues will not be a challenge for our economy in the years to come?

When economists study the national economy or global economy, they are using a ____ approach.

Shawn Sine decides to start his own business.How likely is Shawn to still be operating a successful business in seven years?

Tim Garner 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.Tim's country is most likely a(n) ____ economy.