Question 1

People buy goods and services simply to own them.

Accepted Answer

A) True 
 B)False

Question 2

The Hamel family owns and operates an interior decorating business.Greg installs hardwood floors and chair rails; Stephanie reupholsters furniture and takes care of the finances; Ryan designs and makes draperies and pillows; and Allison coordinates the overall color, look, and design.The process the Hamel family uses to run its business is

Accepted Answer

A)  specialisation. 
B)  division of service. 
C)  the factory system. 
D)  the domestic system. 
E)  the barter system. 
A)  specialisation. 
B)  division of service. 
C)  the factory system. 
D)  the domestic system. 
E)  the barter system.

Question 3

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Accepted Answer

A)  Human 
B)  Financial 
C)  Information 
D)  Major 
E)  Material 
A)  Human 
B)  Financial 
C)  Information 
D)  Major 
E)  Material

Question 4

Olan Okowo recently moved to the city with many hopes and dreams.However, he realises that economic freedom includes all of the following except the right to

Accepted Answer

A)  guaranteed economic success. 
B)  use owned resources to produce a profit. 
C)  accept or reject any job offered. 
D)  sell a product at the price chosen. 
E)  buy any economic good or service producers sell. 
A)  guaranteed economic success. 
B)  use owned resources to produce a profit. 
C)  accept or reject any job offered. 
D)  sell a product at the price chosen. 
E)  buy any economic good or service producers sell.

Question 5

In Adam Smith's view, which of the following is not the role of government in business?

Accepted Answer

A)  Providing defense against foreign governments 
B)  Regulating business activity 
C)  Ensuring internal order 
D)  Furnishing public works 
E)  Providing education 
A)  Providing defense against foreign governments 
B)  Regulating business activity 
C)  Ensuring internal order 
D)  Furnishing public works 
E)  Providing education

Question 6

Best Buy stores would most likely be classified as

Accepted Answer

A)  service businesses. 
B)  sole proprietorships. 
C)  a marketing intermediary. 
D)  manufacturing establishments. 
E)  perfect competition. 
A)  service businesses. 
B)  sole proprietorships. 
C)  a marketing intermediary. 
D)  manufacturing establishments. 
E)  perfect competition.

Question 7

Consumer goods make up about one-third of our nation's gross national product.

Accepted Answer

A) True 
 B)False

Question 8

Fewer workers producing more goods and services can lead to higher overall employment rates.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are characteristics of communist countries such as Cuba except

Accepted Answer

A)  intensive production of goods the government needs. 
B)  all workers contribute to society according to their ability. 
C)  frequent shortages of consumer goods. 
D)  government ownership of almost all economic resources. 
E)  an adequate supply of consumer goods. 
A)  intensive production of goods the government needs. 
B)  all workers contribute to society according to their ability. 
C)  frequent shortages of consumer goods. 
D)  government ownership of almost all economic resources. 
E)  an adequate supply of consumer goods.

Question 10

Microeconomics is the study of

Accepted Answer

A)  global economies. 
B)  the entire nation's economy. 
C)  the decisions made by individuals. 
D)  the national unemployment rate. 
E)  productivity in other countries. 
A)  global economies. 
B)  the entire nation's economy. 
C)  the decisions made by individuals. 
D)  the national unemployment rate. 
E)  productivity in other countries.

Question 11

During the 1930s, government became deeply involved in business for the first time.

Accepted Answer

A) True 
 B)False

Question 12

The terms real gross domestic product and gross domestic product can be used interchangeably.

Accepted Answer

A) True 
 B)False

Question 13

Generally there are three types of businesses-manufacturing businesses, service businesses, and marketing intermediaries.

Accepted Answer

A) True 
 B)False

Question 14

In our free-enterprise system, federal and state governments decide what products and services to provide.

Accepted Answer

A) True 
 B)False

Question 15

France, a socialist economy, does not have which of the following goals?

Accepted Answer

A)  Equitable distribution of income 
B)  Elimination of poverty 
C)  Reduction of government regulations 
D)  Elimination of economic waste 
E)  Distribution of social services to all who need them 
A)  Equitable distribution of income 
B)  Elimination of poverty 
C)  Reduction of government regulations 
D)  Elimination of economic waste 
E)  Distribution of social services to all who need them

Question 16

____ is the process of developing and promoting the differences between one's products and other similar products.

Accepted Answer

A)  Advertising 
B)  Monopolistic competition 
C)  Product differentiation 
D)  Branding 
E)  Goods distinction 
A)  Advertising 
B)  Monopolistic competition 
C)  Product differentiation 
D)  Branding 
E)  Goods distinction

Question 17

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

Accepted Answer

A) True 
 B)False

Question 18

In a socialist economy, the key industries are owned and controlled by the government.

Accepted Answer

A) True 
 B)False

Question 19

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees.

Accepted Answer

A) True 
 B)False

Question 20

Home Inspirations
Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s.When her father retires, Hailey plans on taking over the business.Hailey is aware of many things about the company that she likes, and a few things that she does not.She has particularly noted that when the economy has low unemployment and high total income, sales are great.However, any other time, sales are not so good.
Currently, all of the bedding items are created in one place and everyone works on various tasks every day.Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task.She believes that if production would increase, she could sell her products at a lower price and increase revenue.She knows that most bedding products available in the market are very similar in nature and satisfy the same need.However, if she were able to lower prices, this might give her company the competitive advantage that it needs.She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery.She is also considering selling her products on the Internet.Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company.
-Refer to Home Inspirations.Hailey noticed that when sales were up, the economy was in a

Accepted Answer

A)  depression. 
B)  peak period. 
C)  grace period. 
D)  recession. 
E)  stagnant mode. 
A)  depression. 
B)  peak period. 
C)  grace period. 
D)  recession. 
E)  stagnant mode.

People buy goods and services simply to own them.

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Olan Okowo recently moved to the city with many hopes and dreams.However, he realises that economic freedom includes all of the following except the right to

In Adam Smith's view, which of the following is not the role of government in business?

Best Buy stores would most likely be classified as

Consumer goods make up about one-third of our nation's gross national product.

Fewer workers producing more goods and services can lead to higher overall employment rates.

All of the following are characteristics of communist countries such as Cuba except

Microeconomics is the study of

During the 1930s, government became deeply involved in business for the first time.

The terms real gross domestic product and gross domestic product can be used interchangeably.

Generally there are three types of businesses-manufacturing businesses, service businesses, and marketing intermediaries.

In our free-enterprise system, federal and state governments decide what products and services to provide.

France, a socialist economy, does not have which of the following goals?

____ is the process of developing and promoting the differences between one's products and other similar products.

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

In a socialist economy, the key industries are owned and controlled by the government.

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees.

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters

Exam 1: Introduction to Business

People buy goods and services simply to own them.

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Olan Okowo recently moved to the city with many hopes and dreams.However, he realises that economic freedom includes all of the following except the right to

In Adam Smith's view, which of the following is not the role of government in business?

Best Buy stores would most likely be classified as

Consumer goods make up about one-third of our nation's gross national product.

Fewer workers producing more goods and services can lead to higher overall employment rates.

All of the following are characteristics of communist countries such as Cuba except

Microeconomics is the study of

During the 1930s, government became deeply involved in business for the first time.

The terms real gross domestic product and gross domestic product can be used interchangeably.

Generally there are three types of businesses-manufacturing businesses, service businesses, and marketing intermediaries.

In our free-enterprise system, federal and state governments decide what products and services to provide.

France, a socialist economy, does not have which of the following goals?

____ is the process of developing and promoting the differences between one's products and other similar products.

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

In a socialist economy, the key industries are owned and controlled by the government.

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees.

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters