Exam 1: Exploring the World of Business and Economics

Deflation is a general decrease in the level of prices.

To compare the productivity of the United States to that of Japan, one should examine their respective ____.

A natural resource, as recognized by economists, would include which of the following?

Shawn Sine decides to start his own business.How likely is Shawn to still be operating a successful business in five years?

Describe how supply and demand affect the price of a product.

The economic term used to describe the Federal Reserve's actions to determine the size of the supply of money in the nation and the level of interest rates is _____.

Basically, there are four recognized degrees of competition: perfect competition, monopolistic competition, oligopoly, and monopoly.

Which of the following statements is false?

An economic system in which individuals and businesses make decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

The maker of Hanes pantyhose attempts to set its product apart from the competition.As a result, the company obtained limited control over the price of its product.Achieving price control in this manner is known as _____.

As the price of jeans rises, Levi Strauss is likely to

The national debt in the United States is nearly $12 trillion.

There are several types of businesses.Which of the following, according to its primary business activities, would be classified as a service business?

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

The government uses taxes to purchase resources and products required to provide services.

Command economies include capitalism, socialism, and communism.

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.Which of these statements is true?

Explain how you can improve your course grade and become more successful in this course.

Verizon Corporation has the right to manufacture and market a product and redesign its stores because it operates in a(n) ____ system.

Economists define standard of living as a subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services.