Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

Insourcing refers to the practice of global companies setting up design and production facilities in the United States.

Maintaining a high quality of life requires the combined efforts of businesses, nonprofit organizations, and government agencies.

Which of the following statements about factors of production is the most accurate?

Jeff is an emergency room nurse at a regional hospital in Arizona. On a weekly basis, he will serve a number of patients who are not legally U.S. citizens. Fortunately, he speaks enough Spanish to communicate with the patients. Jeff is experiencing the realities of the social environment in some states.

People living in San Francisco, CA, on average earn more money than people living in Kansas City, MO. The citizens of San Francisco enjoy a higher standard of living than the citizens of Kansas City.

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves. Such things they are likely to pass up on are:

As he explores his options for starting a new business, Eli has looked into the tax implications and government regulations that he would encounter. He wants to maintain an office in a different location from his home. He has discovered that some nearby communities offer tax credits and lower taxes than his town. His decision will be influenced by the ________ environment.

One of the best things the governments of developing countries can do to increase wealth is to minimize interference with the free exchange of goods and services.

If they wish to create more wealth, poor nations should focus on policies that increase entrepreneurship and the effective use of knowledge.

As he starts his research, Eli notices that some opportunities appear to be riskier than others. When considering various opportunities, Eli should keep in mind that 

Kira is a financial planner who helps people find ways to save for retirement and lower their taxes. Kira is employed in the service sector of the economy.

Laws that allow companies to write enforceable contracts decrease the risk of doing business.

An electronic storage file where information is kept is called a CPU.

The government of the small nation of Gordonia owned the nation's telephone company and landlines. This relatively poor government relied on taxes to develop this industry and provide service to its citizens. If the government wanted to improve people's access to phone service, its best course of action would involve selling the telephone company to private investors. 

Technology helped the manufacturing industry to become more productive.

Chao sells custom bicycles. He buys several bike parts including wheels and tires from Upright Strides, Inc. Although several government-supported regulations help Chao in his business, regulations that make it easy for his business to enjoy good vendor relationships are

________ means producing the desired result.

The advice provided by a personal trainer is an example of the service industry.

The United States has one of the highest standards of living in the world.

Michelle recently started selling her invention: A bed that looks like it floats in mid-air. The bed is actually suspended by magnetic forces. Michelle is a(n)