Exam 1: Exploring the World of Business and Economics

For the U.S.government to provide services, it collects revenue

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

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

The study of an individual's economic decisions would be an example of ____.

For firms like Target and Wal-Mart, competition

At the end of the year, the Walt Disney Company has a profit of $920 million.This profit belongs to which of the following groups?

In your own words, describe four reasons why someone should study business.

When a business distributes profits to business owners, these profits become household income and are removed from the circular flow of the economy.

When Microsoft copyrighted its Windows software, it established a(n) ____ monopoly.

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 both how and what his company would produce.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.When hiring people, which of the following does Jonathan think is most important to consider?

An executive at a U.S.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 day after General Motors offered 2.9 percent financing on three-year loans for all GM cars, Ford and Chrysler began making their own financing offers.These businesses

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

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 both how and what his company would produce.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 to produce and how to produce it.