Question 1

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines.This transaction is an example of _____.

Accepted Answer

A)  barter 
B)  ancient trading 
C)  the domestic system 
D)  the factory system 
E)  an unequal exchange of goods 
A)  barter 
B)  ancient trading 
C)  the domestic system 
D)  the factory system 
E)  an unequal exchange of goods

Question 2

An oligopoly is a market situation in which there is one producer and a few large buyers.

Accepted Answer

A) True 
 B)False

Question 3

Microeconomics is the study of _____.

Accepted Answer

A)  global economies 
B)  the entire U.S.economy 
C)  the decisions made by individuals 
D)  the national unemployment rate 
E)  productivity in other countries 
A)  global economies 
B)  the entire U.S.economy 
C)  the decisions made by individuals 
D)  the national unemployment rate 
E)  productivity in other countries

Question 4

All of the following would typically be considered consumer products except a _____.

Accepted Answer

A)  2-liter of Coke 
B)  DVD player 
C)  prom dress 
D)  high-powered drill press 
E)  bag of dog food 
A)  2-liter of Coke 
B)  DVD player 
C)  prom dress 
D)  high-powered drill press 
E)  bag of dog food

Question 5

Which of the following is not one of the four states of a typical business cycle?

Accepted Answer

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

Question 6

Organizations that combine raw materials, machinery, and labor to produce goods are called _____.

Accepted Answer

A)  manufacturing businesses 
B)  service businesses 
C)  merchandisers 
D)  market intermediaries 
E)  processors 
A)  manufacturing businesses 
B)  service businesses 
C)  merchandisers 
D)  market intermediaries 
E)  processors

Question 7

For Starbucks Coffee, managers and employees would be _____.

Accepted Answer

A)  natural resources 
B)  capital 
C)  information resources 
D)  labor 
E)  the entrepreneurial resource 
A)  natural resources 
B)  capital 
C)  information resources 
D)  labor 
E)  the entrepreneurial resource

Question 8

IBM is most correctly classified as a marketing intermediary type of business.

Accepted Answer

A) True 
 B)False

Question 9

A system in which the government decides what goods and services will be produced, how they will be produced, for whom they will be produced, and who owns and controls the major factors of production is referred to as a ____ economy.

Accepted Answer

A)  command 
B)  capitalistic 
C)  mixed 
D)  laissez-faire 
E)  communal 
A)  command 
B)  capitalistic 
C)  mixed 
D)  laissez-faire 
E)  communal

Question 10

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

Accepted Answer

A) True 
 B)False

Question 11

The work performed to produce goods and services is referred to as _____.

Accepted Answer

A)  land 
B)  financial resources 
C)  material resources 
D)  capital goods 
E)  labor 
A)  land 
B)  financial resources 
C)  material resources 
D)  capital goods 
E)  labor

Question 12

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Accepted Answer

A) True 
 B)False

Question 13

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n) _____.

Accepted Answer

A)  oligopoly 
B)  domestic system 
C)  system of specialization 
D)  factory system 
E)  barter system 
A)  oligopoly 
B)  domestic system 
C)  system of specialization 
D)  factory system 
E)  barter system

Question 14

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

Accepted Answer

A) True 
 B)False

Question 15

What do you consider to be the most important challenges that American business faces today?

Accepted Answer

The most important challenges that Ameri

Question 16

The economic term used to describe the government's influence on savings and the levels of government spending is _____.

Accepted Answer

A)  monetary policy 
B)  fiscal policy 
C)  debt policy 
D)  recovery technique 
E)  recovery guideline 
A)  monetary policy 
B)  fiscal policy 
C)  debt policy 
D)  recovery technique 
E)  recovery guideline

Question 17

John Dang is an economics professor in a communist country.Which of the following likely describes the situation John faces?

Accepted Answer

A)  He is treated exactly the same as everyone else in the country. 
B)  He would not be a professor because no communist country has colleges. 
C)  He would receive special privileges because his skills and knowledge are valued. 
D)  As a professor, he would actually be treated less favorably than most citizens. 
E)  He would be encouraged to become a factory worker to increase productivity. 
A)  He is treated exactly the same as everyone else in the country. 
B)  He would not be a professor because no communist country has colleges. 
C)  He would receive special privileges because his skills and knowledge are valued. 
D)  As a professor, he would actually be treated less favorably than most citizens. 
E)  He would be encouraged to become a factory worker to increase productivity.

Question 18

The government uses the tax collected from household and businesses to

Accepted Answer

A)  invest in foreign bonds. 
B)  invest in foreign corporations. 
C)  purchase resources and products needed to provide services. 
D)  purchase other nations. 
E)  increase consumer income. 
A)  invest in foreign bonds. 
B)  invest in foreign corporations. 
C)  purchase resources and products needed to provide services. 
D)  purchase other nations. 
E)  increase consumer income.

Question 19

Perfect competition is a market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Accepted Answer

A) True 
 B)False

Question 20

Adam Smith is the person who actually organized American business as we know it today.

Accepted Answer

A) True 
 B)False

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines.This transaction is an example of _____.

An oligopoly is a market situation in which there is one producer and a few large buyers.

Microeconomics is the study of _____.

All of the following would typically be considered consumer products except a _____.

Which of the following is not one of the four states of a typical business cycle?

Organizations that combine raw materials, machinery, and labor to produce goods are called _____.

For Starbucks Coffee, managers and employees would be _____.

IBM is most correctly classified as a marketing intermediary type of business.

A system in which the government decides what goods and services will be produced, how they will be produced, for whom they will be produced, and who owns and controls the major factors of production is referred to as a ____ economy.

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

The work performed to produce goods and services is referred to as _____.

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n) _____.

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

What do you consider to be the most important challenges that American business faces today?

The economic term used to describe the government's influence on savings and the levels of government spending is _____.

John Dang is an economics professor in a communist country.Which of the following likely describes the situation John faces?

The government uses the tax collected from household and businesses to

Perfect competition is a market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Adam Smith is the person who actually organized American business as we know it today.

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

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines.This transaction is an example of _____.

An oligopoly is a market situation in which there is one producer and a few large buyers.

Microeconomics is the study of _____.

All of the following would typically be considered consumer products except a _____.

Which of the following is not one of the four states of a typical business cycle?

Organizations that combine raw materials, machinery, and labor to produce goods are called _____.

For Starbucks Coffee, managers and employees would be _____.

IBM is most correctly classified as a marketing intermediary type of business.

A system in which the government decides what goods and services will be produced, how they will be produced, for whom they will be produced, and who owns and controls the major factors of production is referred to as a ____ economy.

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

The work performed to produce goods and services is referred to as _____.

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n) _____.

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

What do you consider to be the most important challenges that American business faces today?

The economic term used to describe the government's influence on savings and the levels of government spending is _____.

John Dang is an economics professor in a communist country.Which of the following likely describes the situation John faces?

The government uses the tax collected from household and businesses to

Perfect competition is a market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Adam Smith is the person who actually organized American business as we know it today.

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