Question 1

Which of the following statements best describes the law of demand?

Accepted Answer

A)  As the price goes up, I like the product better. 
B)  As the price goes down, I like the product better. 
C)  When I want a product, price makes no difference to me. 
D)  Well over 90 percent of all shoppers pay no attention to price. 
A)  As the price goes up, I like the product better. 
B)  As the price goes down, I like the product better. 
C)  When I want a product, price makes no difference to me. 
D)  Well over 90 percent of all shoppers pay no attention to price.

Question 2

Non-profit businesses operate in many of the same ways as businesses that seek profits.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT a factor of production?

Accepted Answer

A)  labor 
B)  capital 
C)  entrepreneurs 
D)  government 
A)  labor 
B)  capital 
C)  entrepreneurs 
D)  government

Question 4

Which of the following best describes purchasing power parity?

Accepted Answer

A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods and services that can be purchased with one paycheck 
C)  total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation 
D)  the principle that exchange rates are set so that prices of similar products in different countries are about the same 
A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods and services that can be purchased with one paycheck 
C)  total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation 
D)  the principle that exchange rates are set so that prices of similar products in different countries are about the same

Question 5

Taken together,fiscal policy and monetary policy make up ________ policy.

Accepted Answer

A)  trade 
B)  economic 
C)  stabilization 
D)  financial 
A)  trade 
B)  economic 
C)  stabilization 
D)  financial

Question 6

Which of the following is one of the elements required in private enterprise?

Accepted Answer

A)  adequate representation in the government 
B)  freedom from foreign competition 
C)  the right to market leadership 
D)  freedom of choice 
A)  adequate representation in the government 
B)  freedom from foreign competition 
C)  the right to market leadership 
D)  freedom of choice

Question 7

Which of the following is NOT an example of physical resources?

Accepted Answer

A)  market forecasts 
B)  office facilities 
C)  computers 
D)  land 
A)  market forecasts 
B)  office facilities 
C)  computers 
D)  land

Question 8

The ________ is the amount of money that the government owes to its creditors.

Accepted Answer

A)  business cycle 
B)  aggregate output 
C)  standard of living 
D)  national debt 
A)  business cycle 
B)  aggregate output 
C)  standard of living 
D)  national debt

Question 9

The chief goal of an economic system is ________.

Accepted Answer

A)  stability 
B)  growth 
C)  productivity 
D)  equality 
A)  stability 
B)  growth 
C)  productivity 
D)  equality

Question 10

What are profits?

Accepted Answer

A)  total money taken in by a corporation 
B)  difference between revenues and expenses 
C)  increases in income from year to year 
D)  increases in a corporation's stock price 
A)  total money taken in by a corporation 
B)  difference between revenues and expenses 
C)  increases in income from year to year 
D)  increases in a corporation's stock price

Question 11

The technological environment only includes electronics and telecommunications used to perform business activities.

Accepted Answer

A) True 
 B)False

Question 12

Increases in an economic system's standard of living result primarily from increases in ________.

Accepted Answer

A)  balance of trade 
B)  real GNP 
C)  productivity 
D)  nominal GDP 
A)  balance of trade 
B)  real GNP 
C)  productivity 
D)  nominal GDP

Question 13

There are many sellers in an oligopoly.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements best captures the notion of private enterprise?

Accepted Answer

A)  Individuals pursue their own interests with minimal government restriction. 
B)  Certain business activities remain "private." 
C)  Businesses can do anything they want, free of legal restraints. 
D)  Small businesses will do better than big businesses in the long run. 
A)  Individuals pursue their own interests with minimal government restriction. 
B)  Certain business activities remain "private." 
C)  Businesses can do anything they want, free of legal restraints. 
D)  Small businesses will do better than big businesses in the long run.

Question 15

GDP per capita is computed by dividing a nation's GDP by its total population.

Accepted Answer

A) True 
 B)False

Question 16

The law of demand maintains that buyers will purchase more of a product as its price ________.

Accepted Answer

A)  rises 
B)  drops 
C)  stays the same 
D)  fits a person's personal budget 
A)  rises 
B)  drops 
C)  stays the same 
D)  fits a person's personal budget

Question 17

Gross domestic product (GDP)refers to the total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located.

Accepted Answer

A) True 
 B)False

Question 18

Explain the role of private enterprise in a market economy.Include an explanation of the elements that comprise free enterprise.

Accepted Answer

Market economies rely on a private enter

Question 19

How does inflation affect purchasing power?

Accepted Answer

Inflation is the occurrence of

Question 20

The United States government manages the collection and spending of its revenues through monetary policy.

Accepted Answer

A) True 
 B)False

Which of the following statements best describes the law of demand?

Non-profit businesses operate in many of the same ways as businesses that seek profits.

Which of the following is NOT a factor of production?

Which of the following best describes purchasing power parity?

Taken together,fiscal policy and monetary policy make up ________ policy.

Which of the following is one of the elements required in private enterprise?

Which of the following is NOT an example of physical resources?

The ________ is the amount of money that the government owes to its creditors.

The chief goal of an economic system is ________.

What are profits?

The technological environment only includes electronics and telecommunications used to perform business activities.

Increases in an economic system's standard of living result primarily from increases in ________.

There are many sellers in an oligopoly.

Which of the following statements best captures the notion of private enterprise?

GDP per capita is computed by dividing a nation's GDP by its total population.

The law of demand maintains that buyers will purchase more of a product as its price ________.

Gross domestic product (GDP)refers to the total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located.

Explain the role of private enterprise in a market economy.Include an explanation of the elements that comprise free enterprise.

How does inflation affect purchasing power?

The United States government manages the collection and spending of its revenues through monetary policy.

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

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Exam 1: The U.S.Business Environment

Which of the following statements best describes the law of demand?

Non-profit businesses operate in many of the same ways as businesses that seek profits.

Which of the following is NOT a factor of production?

Which of the following best describes purchasing power parity?

Taken together,fiscal policy and monetary policy make up ________ policy.

Which of the following is one of the elements required in private enterprise?

Which of the following is NOT an example of physical resources?

The ________ is the amount of money that the government owes to its creditors.

The chief goal of an economic system is ________.

What are profits?

The technological environment only includes electronics and telecommunications used to perform business activities.

Increases in an economic system's standard of living result primarily from increases in ________.

There are many sellers in an oligopoly.

Which of the following statements best captures the notion of private enterprise?

GDP per capita is computed by dividing a nation's GDP by its total population.

The law of demand maintains that buyers will purchase more of a product as its price ________.

Gross domestic product (GDP)refers to the total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located.

Explain the role of private enterprise in a market economy.Include an explanation of the elements that comprise free enterprise.

How does inflation affect purchasing power?

The United States government manages the collection and spending of its revenues through monetary policy.

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