Question 1

The recurrence of periods of growth and recession in a nation's economic activity is a depression.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following companies is an example of a manufacturer?

Accepted Answer

A)  American Airlines 
B)  General Electric 
C)  Merrill Lynch 
D)  JC Penney 
E)  Sears 
A)  American Airlines 
B)  General Electric 
C)  Merrill Lynch 
D)  JC Penney 
E)  Sears

Question 3

Which of the following is true about the technology environment?

Accepted Answer

A)  It is not as important as it was fifteen years ago. 
B)  It does not affect manufacturing firms. 
C)  It changes the way business firms communicate with customers. 
D)  It doesn't change as often as it did fifteen years ago. 
E)  It is not a concern for most firms that do business only in the United States. 
A)  It is not as important as it was fifteen years ago. 
B)  It does not affect manufacturing firms. 
C)  It changes the way business firms communicate with customers. 
D)  It doesn't change as often as it did fifteen years ago. 
E)  It is not a concern for most firms that do business only in the United States.

Question 4

Increased competition from firms in other nations is an example of the _____.

Accepted Answer

A)  technological environment 
B)  global environment 
C)  command environment 
D)  laissez-faire environment 
E)  mixed environment 
A)  technological environment 
B)  global environment 
C)  command environment 
D)  laissez-faire environment 
E)  mixed environment

Question 5

A person who risks his or her time, effort, and money to start and operate a business is called a(n) _____.

Accepted Answer

A)  free-market specialist 
B)  entrepreneur 
C)  intrapreneur 
D)  competitor 
E)  profit taker 
A)  free-market specialist 
B)  entrepreneur 
C)  intrapreneur 
D)  competitor 
E)  profit taker

Question 6

Just-The-One Jewelry had sales revenues of $1,500,000.This retailer also had expenses that totaled $800,000.What is the firm's profit or loss amount?

Accepted Answer

A)  $2,300,000 
B)  $1,500,000 
C)  $800,000 
D)  $700,000 
E)  It is impossible to calculate profit or loss with the above information. 
A)  $2,300,000 
B)  $1,500,000 
C)  $800,000 
D)  $700,000 
E)  It is impossible to calculate profit or loss with the above information.

Question 7

How the price of homes affects the number of homes built and sold would be an economic issue studied in a macroeconomics course.

Accepted Answer

A) True 
 B)False

Question 8

Real gross domestic product is an economic measure that is adjusted for price increases of goods and services during a given period of time.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  profit 
B)  loss 
C)  negative cash flow 
D)  planned economy 
E)  market economy 
A)  profit 
B)  loss 
C)  negative cash flow 
D)  planned economy 
E)  market economy

Question 10

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.Now that Jonathan plans to open his own business, he needs to look at the factors of production.Which of the following is not a factor of production?

Accepted Answer

A)  Labor 
B)  Capital 
C)  Machinery 
D)  Demand 
E)  Entrepreneurship 
A)  Labor 
B)  Capital 
C)  Machinery 
D)  Demand 
E)  Entrepreneurship

Question 11

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

Accepted Answer

A)  sell either to other firms or to consumers. 
B)  satisfy the needs of its customers. 
C)  pay out money to cover the various expenses of doing business. 
D)  know that people generally buy a product and store it. 
E)  make it impossible to satisfy customers. 
A)  sell either to other firms or to consumers. 
B)  satisfy the needs of its customers. 
C)  pay out money to cover the various expenses of doing business. 
D)  know that people generally buy a product and store it. 
E)  make it impossible to satisfy customers.

Question 12

During which phase of the business cycle would a company like General Electric introduce new products?

Accepted Answer

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

Question 13

The consumer price index (CPI)

Accepted Answer

A)  is a quarterly index that tracks prices at the wholesale level. 
B)  measures increases or decreases in the level of worker performance. 
C)  is the price of metals, lumber, and raw materials. 
D)  measures prices paid during periods of deflations. 
E)  is a monthly index that tracks the prices paid by consumers. 
A)  is a quarterly index that tracks prices at the wholesale level. 
B)  measures increases or decreases in the level of worker performance. 
C)  is the price of metals, lumber, and raw materials. 
D)  measures prices paid during periods of deflations. 
E)  is a monthly index that tracks the prices paid by consumers.

Question 14

If the demand for a product declines, what happens to the price of the product?

Accepted Answer

A)  The price stays the same. 
B)  The price decreases. 
C)  The price increases. 
D)  The equilibrium price will be maintained. 
E)  The market price will be maintained. 
A)  The price stays the same. 
B)  The price decreases. 
C)  The price increases. 
D)  The equilibrium price will be maintained. 
E)  The market price will be maintained.

Question 15

Which of the following is not a characteristic of the Great Depression?

Accepted Answer

A)  Stock prices decreased. 
B)  It was a period of misery and human suffering. 
C)  There was a near collapse of the nation's economy. 
D)  The government became less involved in business activities. 
E)  People lost faith in business and its ability to satisfy society's needs. 
A)  Stock prices decreased. 
B)  It was a period of misery and human suffering. 
C)  There was a near collapse of the nation's economy. 
D)  The government became less involved in business activities. 
E)  People lost faith in business and its ability to satisfy society's needs.

Question 16

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

Accepted Answer

A) True 
 B)False

Question 17

From 1950 to 1960, Americans experienced a period of

Accepted Answer

A)  high unemployment. 
B)  a rising standard of living. 
C)  decreased production. 
D)  a decline in gross domestic product. 
E)  decreased economic activity. 
A)  high unemployment. 
B)  a rising standard of living. 
C)  decreased production. 
D)  a decline in gross domestic product. 
E)  decreased economic activity.

Question 18

In the early 1980s, David Jimenez, a corporate finance manager, faced which of the following problems?

Accepted Answer

A)  high inflation rates 
B)  competition from e-business firms 
C)  too much productivity 
D)  declining interest rates 
E)  a decline in the use of specialization 
A)  high inflation rates 
B)  competition from e-business firms 
C)  too much productivity 
D)  declining interest rates 
E)  a decline in the use of specialization

Question 19

Which of the following economic term describes the total value of a nation's goods or services that have been adjusted for inflation?

Accepted Answer

A)  Altered Gross Domestic Product 
B)  Gross Domestic Product 
C)  Real Gross Domestic Product 
D)  Altered Gross National Product 
E)  Gross National Product 
A)  Altered Gross Domestic Product 
B)  Gross Domestic Product 
C)  Real Gross Domestic Product 
D)  Altered Gross National Product 
E)  Gross National Product

Question 20

For a business, a stakeholder is one who represents the _____

Accepted Answer

A)  investors in the business. 
B)  lenders that have provided loans. 
C)  suppliers that have extended credit to the firm. 
D)  employees who work for the firm. 
E)  different people or groups who are affected in some way by the business. 
A)  investors in the business. 
B)  lenders that have provided loans. 
C)  suppliers that have extended credit to the firm. 
D)  employees who work for the firm. 
E)  different people or groups who are affected in some way by the business.

The recurrence of periods of growth and recession in a nation's economic activity is a depression.

Which of the following companies is an example of a manufacturer?

Which of the following is true about the technology environment?

Increased competition from firms in other nations is an example of the _____.

A person who risks his or her time, effort, and money to start and operate a business is called a(n) _____.

Just-The-One Jewelry had sales revenues of $1,500,000.This retailer also had expenses that totaled $800,000.What is the firm's profit or loss amount?

How the price of homes affects the number of homes built and sold would be an economic issue studied in a macroeconomics course.

Real gross domestic product is an economic measure that is adjusted for price increases of goods and services during a given period of time.

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

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

During which phase of the business cycle would a company like General Electric introduce new products?

The consumer price index (CPI)

If the demand for a product declines, what happens to the price of the product?

Which of the following is not a characteristic of the Great Depression?

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

From 1950 to 1960, Americans experienced a period of

In the early 1980s, David Jimenez, a corporate finance manager, faced which of the following problems?

Which of the following economic term describes the total value of a nation's goods or services that have been adjusted for inflation?

For a business, a stakeholder is one who represents the _____

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 recurrence of periods of growth and recession in a nation's economic activity is a depression.

Which of the following companies is an example of a manufacturer?

Which of the following is true about the technology environment?

Increased competition from firms in other nations is an example of the _____.

A person who risks his or her time, effort, and money to start and operate a business is called a(n) _____.

Just-The-One Jewelry had sales revenues of $1,500,000.This retailer also had expenses that totaled $800,000.What is the firm's profit or loss amount?

How the price of homes affects the number of homes built and sold would be an economic issue studied in a macroeconomics course.

Real gross domestic product is an economic measure that is adjusted for price increases of goods and services during a given period of time.

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

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

During which phase of the business cycle would a company like General Electric introduce new products?

The consumer price index (CPI)

If the demand for a product declines, what happens to the price of the product?

Which of the following is not a characteristic of the Great Depression?

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

From 1950 to 1960, Americans experienced a period of

In the early 1980s, David Jimenez, a corporate finance manager, faced which of the following problems?

Which of the following economic term describes the total value of a nation's goods or services that have been adjusted for inflation?

For a business, a stakeholder is one who represents the _____

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