Question 1

Which of the following would be included in the gross national product of Brazil?

Accepted Answer

A)  the profits earned by a U.S.-owned automobile plant in Brazil 
B)  the profits earned by a Brazilian coffee company operating in the United States 
C)  the profits earned by a U.S. coffee company operating in Peru 
D)  the wages paid to Peruvian workers producing coffee for sale in the United States 
A)  the profits earned by a U.S.-owned automobile plant in Brazil 
B)  the profits earned by a Brazilian coffee company operating in the United States 
C)  the profits earned by a U.S. coffee company operating in Peru 
D)  the wages paid to Peruvian workers producing coffee for sale in the United States B

Question 2

Short Case Scenario 1-1
Expert Electronics is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited because of difficult navigation to and from New Vermont, there are a handful of computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Expert Electronics is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, Expert Electronics is able to fill all orders, but they have no waiting list.
-How would you characterize the level of competition for computers in New Vermont? How are prices set in this type of competitive environment?

Accepted Answer

Because there are only a few sellers,the market for computers in New Vermont is best described as an oligopoly.In an oligopoly,the prices of comparable products are usually very similar.

Question 3

The market for clothing is best characterized as monopolistic competition.

Accepted Answer

A) True 
 B)False  True

Question 4

Capitalism allows for the private ownership of the factors of production.

Accepted Answer

A) True 
 B)False

Question 5

Labor,capital,entrepreneurs,physical resources,and information resources are the five factors of production.

Accepted Answer

A) True 
 B)False

Question 6

Compare and contrast the four degrees of competition in a private enterprise system.

Accepted Answer

The four degrees of competition include

Question 7

To determine if an economy is in a period of recession,economists look for

Accepted Answer

A)  an increase in aggregate output. 
B)  an increase in productivity. 
C)  a decrease in productivity. 
D)  a decrease in aggregate output. 
A)  an increase in aggregate output. 
B)  an increase in productivity. 
C)  a decrease in productivity. 
D)  a decrease in aggregate output.

Question 8

________ is the economic condition characterized by widespread increased prices without increased purchasing power.

Accepted Answer

A)  Unemployment 
B)  Inflation 
C)  Expansion 
D)  Deflation 
A)  Unemployment 
B)  Inflation 
C)  Expansion 
D)  Deflation

Question 9

All of the following are important elements of an organization's external environment EXCEPT:

Accepted Answer

A)  political-legal environment 
B)  sociocultural environment 
C)  technological environment 
D)  entrepreneurial environment 
A)  political-legal environment 
B)  sociocultural environment 
C)  technological environment 
D)  entrepreneurial environment

Question 10

Explain the relationship between productivity and the standard of living.

Accepted Answer

Standard of living refers to the total q

Question 11

Short Case Scenario 1-1
Expert Electronics is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited because of difficult navigation to and from New Vermont, there are a handful of computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Expert Electronics is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, Expert Electronics is able to fill all orders, but they have no waiting list.
-Based on the concepts of demand and supply,how is Expert Electronics pricing its computer systems?

Accepted Answer

It appears that Expert Electronics is pr

Question 12

How does monopolistic competition differ from perfect competition?

Accepted Answer

A)  There are more sellers in a market characterized by monopolistic competition. 
B)  It is easier for sellers to enter a market/industry characterized by monopolistic competition. 
C)  In a perfectly competitive market, products are more dissimilar. 
D)  In a market characterized by monopolistic competition, individual firms have some control over price. 
A)  There are more sellers in a market characterized by monopolistic competition. 
B)  It is easier for sellers to enter a market/industry characterized by monopolistic competition. 
C)  In a perfectly competitive market, products are more dissimilar. 
D)  In a market characterized by monopolistic competition, individual firms have some control over price.

Question 13

________ refers to the total quantity of goods and services produced by an economic system during a given period.

Accepted Answer

A)  The business cycle 
B)  Aggregate output 
C)  Gross domestic product 
D)  The consumer price index 
A)  The business cycle 
B)  Aggregate output 
C)  Gross domestic product 
D)  The consumer price index

Question 14

Define the term unemployment.

Accepted Answer

Unemployment is the

Question 15

"Producers will offer more of a product for sale as its price rises and less as its price drops." The situation being described refers to ________.

Accepted Answer

A)  the push strategy 
B)  the law of demand 
C)  the law of supply 
D)  the evoked set 
A)  the push strategy 
B)  the law of demand 
C)  the law of supply 
D)  the evoked set

Question 16

Electric companies are good examples of natural monopolies because their price is government-regulated and they can supply all the power needed in a local area.

Accepted Answer

A) True 
 B)False

Question 17

What are the two major factors that threaten stability?

Accepted Answer

A)  purchasing power parity and productivity 
B)  purchasing power parity and inflation 
C)  inflation and unemployment 
D)  unemployment and a negative trade balance 
A)  purchasing power parity and productivity 
B)  purchasing power parity and inflation 
C)  inflation and unemployment 
D)  unemployment and a negative trade balance

Question 18

An increase in aggregate output will typically result in a recession.

Accepted Answer

A) True 
 B)False

Question 19

Political-legal environment includes the customs,mores,values and demographic characteristics of the society in which an organization functions.

Accepted Answer

A) True 
 B)False

Question 20

A(n)________ is a prolonged and deep recession.

Accepted Answer

A)  depression 
B)  expansion 
C)  contraction 
D)  negative trade balance 
A)  depression 
B)  expansion 
C)  contraction 
D)  negative trade balance

Which of the following would be included in the gross national product of Brazil?

The market for clothing is best characterized as monopolistic competition.

Capitalism allows for the private ownership of the factors of production.

Labor,capital,entrepreneurs,physical resources,and information resources are the five factors of production.

Compare and contrast the four degrees of competition in a private enterprise system.

To determine if an economy is in a period of recession,economists look for

________ is the economic condition characterized by widespread increased prices without increased purchasing power.

All of the following are important elements of an organization's external environment EXCEPT:

Explain the relationship between productivity and the standard of living.

How does monopolistic competition differ from perfect competition?

________ refers to the total quantity of goods and services produced by an economic system during a given period.

Define the term unemployment.

"Producers will offer more of a product for sale as its price rises and less as its price drops." The situation being described refers to ________.

Electric companies are good examples of natural monopolies because their price is government-regulated and they can supply all the power needed in a local area.

What are the two major factors that threaten stability?

An increase in aggregate output will typically result in a recession.

Political-legal environment includes the customs,mores,values and demographic characteristics of the society in which an organization functions.

A(n)________ is a prolonged and deep recession.

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 1: The U.S.Business Environment

Which of the following would be included in the gross national product of Brazil?

The market for clothing is best characterized as monopolistic competition.

Capitalism allows for the private ownership of the factors of production.

Labor,capital,entrepreneurs,physical resources,and information resources are the five factors of production.

Compare and contrast the four degrees of competition in a private enterprise system.

To determine if an economy is in a period of recession,economists look for

________ is the economic condition characterized by widespread increased prices without increased purchasing power.

All of the following are important elements of an organization's external environment EXCEPT:

Explain the relationship between productivity and the standard of living.

How does monopolistic competition differ from perfect competition?

________ refers to the total quantity of goods and services produced by an economic system during a given period.

Define the term unemployment.

"Producers will offer more of a product for sale as its price rises and less as its price drops." The situation being described refers to ________.

Electric companies are good examples of natural monopolies because their price is government-regulated and they can supply all the power needed in a local area.

What are the two major factors that threaten stability?

An increase in aggregate output will typically result in a recession.

Political-legal environment includes the customs,mores,values and demographic characteristics of the society in which an organization functions.

A(n)________ is a prolonged and deep recession.

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters