Exam 1: Exploring the World of Business and Economics

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

As Rachel Smith and her friends prepare to graduate from college, they are faced with numerous job offers with starting salaries better than they could have imagined when they began college four years ago.Based on this information, which stage of the business cycle would the economy be in?

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers which she studied in Introduction to Business.Is Gail correct?

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

What effect did the Industrial Revolution and the golden age of invention have on the development of American business?

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

The products available in a monopolistically competitive market are similar in nature and are intended to satisfy the same need.

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, at 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 _____.

Exxon/Mobil and Shell are two of the relatively few sellers in the oil-refining industry.Due to the tremendous capital investment required to enter this industry, these companies are insulated significantly from the threat of new competitive entrants and thus have considerable control over price.This market situation is referred to as a(n) _____.

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

The U.S.business system is commonly referred to as a mixed economy.

Gross domestic product is a loose, subjective measure of how well a society can satisfy its people through goods and services.

What is the difference between monetary policies and fiscal policies? How does each affect the nation's economy?

Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work.Chris seems to value _____.

Mike Amerson decides to start a residential landscaping business.How would this business most likely be classified?

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

A nation's economy fluctuates instead of growing at a steady pace every year.These fluctuations are generally referred to as the business cycle.Describe the four different phases of the business cycle.

When the U.S.government spends more than it receives within a fiscal year, this is called the _____.

The framers of our Constitution believed that the government should be heavily involved in the supervision of business.

The concept of sustainability focuses on which of the following?