Question 1

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

Accepted Answer

A)  Economics 
B)  Business 
C)  Marketing 
D)  Capitalism 
E)  Finance 
A)  Economics 
B)  Business 
C)  Marketing 
D)  Capitalism 
E)  Finance A

Question 2

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

Accepted Answer

A)  Monopoly 
B)  Socialism 
C)  Communism 
D)  Competition 
E)  Poverty 
A)  Monopoly 
B)  Socialism 
C)  Communism 
D)  Competition 
E)  Poverty D

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A)  repression 
B)  prosperity 
C)  recession 
D)  trough 
E)  recovery 
A)  repression 
B)  prosperity 
C)  recession 
D)  trough 
E)  recovery

Question 5

Productivity can best be described as

Accepted Answer

A)  a country's total output. 
B)  the efficiency of a company's operations. 
C)  the economic growth in a country. 
D)  the average level of output per worker per hour. 
E)  the average level of output per worker per year. 
A)  a country's total output. 
B)  the efficiency of a company's operations. 
C)  the economic growth in a country. 
D)  the average level of output per worker per hour. 
E)  the average level of output per worker per year.

Question 6

If all leading corporations in the soft-drink industry merged, this would

Accepted Answer

A)  encourage pure competition. 
B)  encourage monopolistic competition. 
C)  lead to an oligopoly. 
D)  create a limited monopoly. 
E)  create a monopoly. 
A)  encourage pure competition. 
B)  encourage monopolistic competition. 
C)  lead to an oligopoly. 
D)  create a limited monopoly. 
E)  create a monopoly.

Question 7

For a profit, the Ford Motor Company produces and sells automobiles that satisfy a society's needs.These efforts are referred to as ____.

Accepted Answer

A)  entrepreneurial 
B)  agricultural 
C)  economical 
D)  business 
E)  competition 
A)  entrepreneurial 
B)  agricultural 
C)  economical 
D)  business 
E)  competition

Question 8

Monopolistic competition is a market situation in which

Accepted Answer

A)  similar but not identical products are available. 
B)  only one product is available. 
C)  several identical products are available. 
D)  the same price is charged for all products. 
E)  the government regulates prices. 
A)  similar but not identical products are available. 
B)  only one product is available. 
C)  several identical products are available. 
D)  the same price is charged for all products. 
E)  the government regulates prices.

Question 9

According to economists, natural resources, labor, capital, and entrepreneurship are called _____.

Accepted Answer

A)  free resources 
B)  competitive resources 
C)  factory resources 
D)  factors of manufacturing 
E)  factors of production 
A)  free resources 
B)  competitive resources 
C)  factory resources 
D)  factors of manufacturing 
E)  factors of production

Question 10

Perfect competition is characterized by

Accepted Answer

A)  many buyers and many sellers. 
B)  few buyers and few sellers. 
C)  few buyers and many sellers. 
D)  many buyers and few sellers. 
E)  a few companies that control the market. 
A)  many buyers and many sellers. 
B)  few buyers and few sellers. 
C)  few buyers and many sellers. 
D)  many buyers and few sellers. 
E)  a few companies that control the market.

Question 11

Bowflex, Inc., which manufactures total-strength training systems for home use, obtained a patent on its Power Rods.Bowflex has a(n) ____ for this product.

Accepted Answer

A)  monopoly 
B)  oligopoly 
C)  natural monopoly 
D)  limited monopoly 
E)  illegal monopoly 
A)  monopoly 
B)  oligopoly 
C)  natural monopoly 
D)  limited monopoly 
E)  illegal monopoly

Question 12

Which business environment impacts most the ways today's businesses conduct business?

Accepted Answer

A)  the economic environment 
B)  the technological environment 
C)  the competitive environment 
D)  the global environment 
E)  All of the current business environments impact today's businesses equally. 
A)  the economic environment 
B)  the technological environment 
C)  the competitive environment 
D)  the global environment 
E)  All of the current business environments impact today's businesses equally.

Question 13

Consumers exchange tax money to purchase goods and services.

Accepted Answer

A) True 
 B)False

Question 14

What must a monopoly, such as a public utility, account for when setting its prices?

Accepted Answer

A)  A monopoly, because it has no competitors, can set prices as high as it likes. 
B)  A monopoly must consider customer demand, and then set prices at the most profitable level. 
C)  A monopoly must take into account what its top competitors are charging for the same product or service. 
D)  A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries. 
E)  A monopoly must look at the importance of each client, and then determine what respective rate each will be charged. 
A)  A monopoly, because it has no competitors, can set prices as high as it likes. 
B)  A monopoly must consider customer demand, and then set prices at the most profitable level. 
C)  A monopoly must take into account what its top competitors are charging for the same product or service. 
D)  A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries. 
E)  A monopoly must look at the importance of each client, and then determine what respective rate each will be charged.

Question 15

Examples of command economies include_____.

Accepted Answer

A)  socialism and free enterprise 
B)  capitalism and socialism 
C)  socialism and market economy 
D)  communism and capitalism 
E)  socialism and communism 
A)  socialism and free enterprise 
B)  capitalism and socialism 
C)  socialism and market economy 
D)  communism and capitalism 
E)  socialism and communism

Question 16

Raw materials, buildings, and machinery are ____ resources.

Accepted Answer

A)  human 
B)  financial 
C)  information 
D)  major 
E)  material 
A)  human 
B)  financial 
C)  information 
D)  major 
E)  material

Question 17

The total dollar value of all goods and services produced by all people within the boundaries of a country is called _____.

Accepted Answer

A)  productivity 
B)  the gross domestic product 
C)  the gross national product 
D)  the inflation factor 
E)  the standard of living 
A)  productivity 
B)  the gross domestic product 
C)  the gross national product 
D)  the inflation factor 
E)  the standard of living

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

People buy goods and services simply to own them.

Accepted Answer

A) True 
 B)False

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

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

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

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

Productivity can best be described as

If all leading corporations in the soft-drink industry merged, this would

For a profit, the Ford Motor Company produces and sells automobiles that satisfy a society's needs.These efforts are referred to as ____.

Monopolistic competition is a market situation in which

According to economists, natural resources, labor, capital, and entrepreneurship are called _____.

Perfect competition is characterized by

Bowflex, Inc., which manufactures total-strength training systems for home use, obtained a patent on its Power Rods.Bowflex has a(n) ____ for this product.

Which business environment impacts most the ways today's businesses conduct business?

Consumers exchange tax money to purchase goods and services.

What must a monopoly, such as a public utility, account for when setting its prices?

Examples of command economies include_____.

Raw materials, buildings, and machinery are ____ resources.

The total dollar value of all goods and services produced by all people within the boundaries of a country is called _____.

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

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

People buy goods and services simply to own them.

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

Filters

Exam 1: Exploring the World of Business and Economics

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

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

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

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

Productivity can best be described as

If all leading corporations in the soft-drink industry merged, this would

For a profit, the Ford Motor Company produces and sells automobiles that satisfy a society's needs.These efforts are referred to as ____.

Monopolistic competition is a market situation in which

According to economists, natural resources, labor, capital, and entrepreneurship are called _____.

Perfect competition is characterized by

Bowflex, Inc., which manufactures total-strength training systems for home use, obtained a patent on its Power Rods.Bowflex has a(n) ____ for this product.

Which business environment impacts most the ways today's businesses conduct business?

Consumers exchange tax money to purchase goods and services.

What must a monopoly, such as a public utility, account for when setting its prices?

Examples of command economies include_____.

Raw materials, buildings, and machinery are ____ resources.

The total dollar value of all goods and services produced by all people within the boundaries of a country is called _____.

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

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

People buy goods and services simply to own them.

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

Filters