Question 1

The advent of technology and the Internet has lead to the increased use of information by business managers.

Accepted Answer

A) True 
 B)False

Question 2

Susan Montgomery works at an institutional bakery and is paid a wage dictated by the government.She does not like her job but is not allowed other options.Susan must purchase necessities for her family at fixed prices.The country Susan lives in can be described as a ____ economy.

Accepted Answer

A)  demand 
B)  command 
C)  market 
D)  free-enterprise 
E)  capitalist 
A)  demand 
B)  command 
C)  market 
D)  free-enterprise 
E)  capitalist

Question 3

The United States, whose economy exhibits elements of both capitalism and socialism, is known as a(n) ____ economy.

Accepted Answer

A)  planned 
B)  utilitarian 
C)  nationalized 
D)  mixed 
E)  centralized 
A)  planned 
B)  utilitarian 
C)  nationalized 
D)  mixed 
E)  centralized

Question 4

Inflation is a general rise in the level of prices.

Accepted Answer

A) True 
 B)False

Question 5

During which phase do high unemployment rates decline and levels of income increase?

Accepted Answer

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

Question 6

One of Samuel Slater's contributions to the development of American business was the use of _____.

Accepted Answer

A)  capital 
B)  flexible manufacturing 
C)  domestic robots 
D)  the factory system 
E)  the domestic system 
A)  capital 
B)  flexible manufacturing 
C)  domestic robots 
D)  the factory system 
E)  the domestic system

Question 7

____ is a market situation (or industry) in which there are few sellers.

Accepted Answer

A)  Monopolistic competition 
B)  Pure competition 
C)  Monopoly 
D)  Oligopoly 
E)  Natural monopoly 
A)  Monopolistic competition 
B)  Pure competition 
C)  Monopoly 
D)  Oligopoly 
E)  Natural monopoly

Question 8

Which of the following is not a characteristic of a socialist economy?

Accepted Answer

A)  All capital and capital goods are privately owned. 
B)  The government owns and controls key industries. 
C)  Land and raw materials may be the property of the state. 
D)  What to produce and how to produce it are based on national goals. 
E)  Distribution of goods and services is controlled by the state. 
A)  All capital and capital goods are privately owned. 
B)  The government owns and controls key industries. 
C)  Land and raw materials may be the property of the state. 
D)  What to produce and how to produce it are based on national goals. 
E)  Distribution of goods and services is controlled by the state.

Question 9

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

Accepted Answer

A)  is related to the real gross domestic product. 
B)  measures prices that manufacturers must pay for lumber and other raw materials used in the manufacturing process. 
C)  tracks the cost of housing and transportation. 
D)  is published daily. 
E)  measures the effect of interest rates on the economy. 
A)  is related to the real gross domestic product. 
B)  measures prices that manufacturers must pay for lumber and other raw materials used in the manufacturing process. 
C)  tracks the cost of housing and transportation. 
D)  is published daily. 
E)  measures the effect of interest rates on the economy.

Question 10

The use of the factory system in the United States helped to usher in the _____.

Accepted Answer

A)  colonial period 
B)  industrial revolution 
C)  great depression 
D)  renaissance 
E)  twentieth century 
A)  colonial period 
B)  industrial revolution 
C)  great depression 
D)  renaissance 
E)  twentieth century

Question 11

The monetary contributions that the owners of IBM pay for shares in the company's stock are ____ resources for IBM.

Accepted Answer

A)  material 
B)  financial 
C)  informational 
D)  human 
E)  manufacturing 
A)  material 
B)  financial 
C)  informational 
D)  human 
E)  manufacturing

Question 12

Households provide all of the following resources to businesses except _____.

Accepted Answer

A)  labor 
B)  land 
C)  dividends 
D)  buildings 
E)  capital 
A)  labor 
B)  land 
C)  dividends 
D)  buildings 
E)  capital

Question 13

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.Home Inspirations currently operates in a ____ environment.

Accepted Answer

A)  purely competitive 
B)  demand 
C)  monopolistic 
D)  command 
E)  supply 
A)  purely competitive 
B)  demand 
C)  monopolistic 
D)  command 
E)  supply

Question 14

Which of the following purchases goods and services for personal or household use?

Accepted Answer

A)  entrepreneur 
B)  manager 
C)  labor 
D)  consumer 
E)  market middleman 
A)  entrepreneur 
B)  manager 
C)  labor 
D)  consumer 
E)  market middleman

Question 15

According to economic experts, if we as a nation can become more competitive, we may solve many of our current domestic problems.

Accepted Answer

A) True 
 B)False

Question 16

The services that government provides would not be produced by private business firms or would be produced only for those who could afford them.

Accepted Answer

A) True 
 B)False

Question 17

When a firm's sales revenue is greater than its expenses, the firm has a _____.

Accepted Answer

A)  profit 
B)  loss 
C)  positive cash flow 
D)  financial resource 
E)  factor of production 
A)  profit 
B)  loss 
C)  positive cash flow 
D)  financial resource 
E)  factor of production

Question 18

Alex Crane is a financial planner who gives seminars on the benefits of purchasing stocks and bonds for retirement.Alex's seminars educate the participants on how to

Accepted Answer

A)  become more informed consumers. 
B)  become more informed investors. 
C)  start their own businesses. 
D)  be better employees. 
E)  manage retirement. 
A)  become more informed consumers. 
B)  become more informed investors. 
C)  start their own businesses. 
D)  be better employees. 
E)  manage retirement.

Question 19

Researchers just released the results of a study that shows eating fish at least four times a week dramatically decreases adults' risk of heart disease.What will likely result from this new information?

Accepted Answer

A)  The demand for fish will decrease. 
B)  The supply of fish will decrease, causing a decrease in the price. 
C)  The demand for fish will increase at every price. 
D)  The demand for fish will decrease at every price. 
E)  The demand for fish will likely remain the same, but the market price will adjust. 
A)  The demand for fish will decrease. 
B)  The supply of fish will decrease, causing a decrease in the price. 
C)  The demand for fish will increase at every price. 
D)  The demand for fish will decrease at every price. 
E)  The demand for fish will likely remain the same, but the market price will adjust.

Question 20

During which stage of the business cycle would a company such as 3M begin to focus on being more value conscious in its production decisions?

Accepted Answer

A)  depression 
B)  peak 
C)  recession 
D)  trough 
E)  recovery 
A)  depression 
B)  peak 
C)  recession 
D)  trough 
E)  recovery

The advent of technology and the Internet has lead to the increased use of information by business managers.

Susan Montgomery works at an institutional bakery and is paid a wage dictated by the government.She does not like her job but is not allowed other options.Susan must purchase necessities for her family at fixed prices.The country Susan lives in can be described as a ____ economy.

The United States, whose economy exhibits elements of both capitalism and socialism, is known as a(n) ____ economy.

Inflation is a general rise in the level of prices.

During which phase do high unemployment rates decline and levels of income increase?

One of Samuel Slater's contributions to the development of American business was the use of _____.

____ is a market situation (or industry) in which there are few sellers.

Which of the following is not a characteristic of a socialist economy?

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

The use of the factory system in the United States helped to usher in the _____.

The monetary contributions that the owners of IBM pay for shares in the company's stock are ____ resources for IBM.

Households provide all of the following resources to businesses except _____.

Which of the following purchases goods and services for personal or household use?

According to economic experts, if we as a nation can become more competitive, we may solve many of our current domestic problems.

The services that government provides would not be produced by private business firms or would be produced only for those who could afford them.

When a firm's sales revenue is greater than its expenses, the firm has a _____.

Alex Crane is a financial planner who gives seminars on the benefits of purchasing stocks and bonds for retirement.Alex's seminars educate the participants on how to

Researchers just released the results of a study that shows eating fish at least four times a week dramatically decreases adults' risk of heart disease.What will likely result from this new information?

During which stage of the business cycle would a company such as 3M begin to focus on being more value conscious in its production decisions?

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

The advent of technology and the Internet has lead to the increased use of information by business managers.

Susan Montgomery works at an institutional bakery and is paid a wage dictated by the government.She does not like her job but is not allowed other options.Susan must purchase necessities for her family at fixed prices.The country Susan lives in can be described as a ____ economy.

The United States, whose economy exhibits elements of both capitalism and socialism, is known as a(n) ____ economy.

Inflation is a general rise in the level of prices.

During which phase do high unemployment rates decline and levels of income increase?

One of Samuel Slater's contributions to the development of American business was the use of _____.

____ is a market situation (or industry) in which there are few sellers.

Which of the following is not a characteristic of a socialist economy?

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

The use of the factory system in the United States helped to usher in the _____.

The monetary contributions that the owners of IBM pay for shares in the company's stock are ____ resources for IBM.

Households provide all of the following resources to businesses except _____.

Which of the following purchases goods and services for personal or household use?

According to economic experts, if we as a nation can become more competitive, we may solve many of our current domestic problems.

The services that government provides would not be produced by private business firms or would be produced only for those who could afford them.

When a firm's sales revenue is greater than its expenses, the firm has a _____.

Alex Crane is a financial planner who gives seminars on the benefits of purchasing stocks and bonds for retirement.Alex's seminars educate the participants on how to

Researchers just released the results of a study that shows eating fish at least four times a week dramatically decreases adults' risk of heart disease.What will likely result from this new information?

During which stage of the business cycle would a company such as 3M begin to focus on being more value conscious in its production decisions?

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