Exam 1: Introduction to Business

What resource tells the managers of a business how effectively the other three resources are being combined and used?

After getting her bachelor's degree in business, Mary Wilson realised she was much more productive at her job than she had been before.Mary's degree helped her to become a better employee.

Households provide all of the following resources to businesses except

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's success will contribute to society.This is referred to as the

The recurrence of periods of growth and recession in a nation's economic activity is a depression.

Perfect competition is characterised by

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

The term stakeholders refers only to the people who have invested money in a business.

A business provides goods and services in exchange for sales revenues.

An executive at a steel company uses growth in gross domestic product as one way to develop trends in industry steel use, so he records GDP change for each year on a graph.However, the executive's figures are considerably higher than those of the staff economist, who also has drawn a graph.This difference is most likely the result of

The rivalry among businesses for sales to potential customers

Steve Wilson, a chef at a major restaurant in San Francisco, wants to start his own restaurant.He surveys the market, finds a suitable location, and calculates how much money he will need to lease the building and purchase the necessary equipment and supplies.Steve visits his banker and requests a loan.The money Steve will receive from the loan and the resources he will purchase with it are known as

Which of the following is uncharacteristic of a socialist economy?

A market economy is sometimes referred to as a command economy.

Which of the following is false in regard to the unemployment rate?

Online interaction that allows individuals as well as businesses to share ideas, personal information, and information about products and services is defined as

As the price of a product increases, the amount of the product that consumers purchase increases.

In a communist country such as Cuba, emphasis is placed on producing what type of goods?

The nationalisation of key industries in countries such as Sweden and India is indicative of a(n) ____ economy.

Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product.