Question 1

Which of the following best describes economic stability?

Accepted Answer

A)  the measure of economic growth that compares how much a system produces with the resources needed to produce it 
B)  a condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate 
C)  the economic condition in which a country's exports exceed its imports 
D)  a relative equality between what the government owes its creditors and the revenue it gets from imports 
E)  the economic value of all the products that a country exports minus the economic value of all the products it imports 
A)  the measure of economic growth that compares how much a system produces with the resources needed to produce it 
B)  a condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate 
C)  the economic condition in which a country's exports exceed its imports 
D)  a relative equality between what the government owes its creditors and the revenue it gets from imports 
E)  the economic value of all the products that a country exports minus the economic value of all the products it imports B

Question 2

The CEOs of Company A and B are investigating expansion into new markets, which will provide greater trade volume. Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

Accepted Answer

A)  Country X invests primarily in its textile industry while Country Y focuses on producing high-yield crops. 
B)  Company A is willing to provide parts used in the production of equipment by Company B in exchange for discounts on manufacturing equipment. 
C)  The southern region of Country X over-produces a wide range of produce, while few crops can be efficiently grown in the northern region. 
D)  Company A and Company B are exploring the possibility of a joint venture to provide goods to Country X. 
E)  Country X is looking to invest in foreign markets and Country Y currently has a large trade deficit. 
A)  Country X invests primarily in its textile industry while Country Y focuses on producing high-yield crops. 
B)  Company A is willing to provide parts used in the production of equipment by Company B in exchange for discounts on manufacturing equipment. 
C)  The southern region of Country X over-produces a wide range of produce, while few crops can be efficiently grown in the northern region. 
D)  Company A and Company B are exploring the possibility of a joint venture to provide goods to Country X. 
E)  Country X is looking to invest in foreign markets and Country Y currently has a large trade deficit. A

Question 3

Which of the following, if True, would most weaken Jonathan's contention?

Accepted Answer

A)  AB Distributor's clients are happy with the company's services. 
B)  Shipping costs for the industry have significantly increased over the last year. 
C)  AB Distributor's employees are dissatisfied with the company's working conditions. 
D)  The shipping intermediary industry has experienced a slowdown overall. 
E)  Many of AB Distributor's employees are new to the business. 
A)  AB Distributor's clients are happy with the company's services. 
B)  Shipping costs for the industry have significantly increased over the last year. 
C)  AB Distributor's employees are dissatisfied with the company's working conditions. 
D)  The shipping intermediary industry has experienced a slowdown overall. 
E)  Many of AB Distributor's employees are new to the business. B

Question 4

Assume that Allied has required Cicada to not handle any of Allied's competitors' products. Which of the following most strongly suggests that this arrangement is legal?

Accepted Answer

A)  The pricing demands of Cicada have forced many building suppliers out of business. 
B)  Companies similar to Allied have demonstrated strong financial performance in recent years. 
C)  Cicada often sells groups of homes to institutions that then resell them to individual consumers. 
D)  In the past, Cicada and Allied were part of the same company. 
E)  Monopolistic competition is encouraged by the government in some cases. 
A)  The pricing demands of Cicada have forced many building suppliers out of business. 
B)  Companies similar to Allied have demonstrated strong financial performance in recent years. 
C)  Cicada often sells groups of homes to institutions that then resell them to individual consumers. 
D)  In the past, Cicada and Allied were part of the same company. 
E)  Monopolistic competition is encouraged by the government in some cases.

Question 5

Which of the following best describes nominal GDP?

Accepted Answer

A)  total quantity of goods and services produced by an economic system 
B)  total value of all goods and services produced within a given period by a national economy through domestic factors of production measured in current dollars or with all components valued at current prices 
C)  total value of all goods and services produced within a given period by a national economy regardless of where the factors of production are located 
D)  total value of all goods and services produced within a given period by a national economy through domestic factors of production adjusted to account for changes in currency values and price changes 
E)  total quantity of goods and services that are imported within a given period of time 
A)  total quantity of goods and services produced by an economic system 
B)  total value of all goods and services produced within a given period by a national economy through domestic factors of production measured in current dollars or with all components valued at current prices 
C)  total value of all goods and services produced within a given period by a national economy regardless of where the factors of production are located 
D)  total value of all goods and services produced within a given period by a national economy through domestic factors of production adjusted to account for changes in currency values and price changes 
E)  total quantity of goods and services that are imported within a given period of time

Question 6

Which term refers to the total value of all goods and services produced within a given period by a national economy?

Accepted Answer

A)  standard of living 
B)  aggregate output 
C)  gross domestic product 
D)  gross national produce 
E)  purchasing power parity 
A)  standard of living 
B)  aggregate output 
C)  gross domestic product 
D)  gross national produce 
E)  purchasing power parity

Question 7

Which term refers to the pattern of short-term ups and downs in an economy?

Accepted Answer

A)  aggregate output 
B)  business cycle 
C)  standard of living 
D)  balance of payments 
E)  demand and supply schedule 
A)  aggregate output 
B)  business cycle 
C)  standard of living 
D)  balance of payments 
E)  demand and supply schedule

Question 8

Robert has established a start-up business manufacturing a range of outdoor wear for the leisure market. Which possible scenario would best show that Robert is positioning his business for the global business market?

Accepted Answer

A)  Robert launched a Web site for his business and hired two new employees to handle national and international shipping. 
B)  Robert launched a Web site and filmed a commercial for television and recorded a radio version for local stations. 
C)  Robert created a page for his business on a networking site and offered store coupons to his first 100 friends. 
D)  Robert had his Web site translated into Korean in order to better serve the local Korean community. 
E)  Robert took a full page ad out in the state's official tourism brochure. 
A)  Robert launched a Web site for his business and hired two new employees to handle national and international shipping. 
B)  Robert launched a Web site and filmed a commercial for television and recorded a radio version for local stations. 
C)  Robert created a page for his business on a networking site and offered store coupons to his first 100 friends. 
D)  Robert had his Web site translated into Korean in order to better serve the local Korean community. 
E)  Robert took a full page ad out in the state's official tourism brochure.

Question 9

One of the four elements that are necessary for private enterprise to be carried out is reasonable prices.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following, if True, would strengthen the argument in favor of a price increase?

Accepted Answer

A)  Substitutes for Widgets are available in the market. 
B)  The price of materials consumed along with Widgets has gone up. 
C)  A change in the environment is likely to stimulate overall demand for Widgets. 
D)  Competitors have announced that they intend to keep prices at current levels. 
E)  Relaxation of import restrictions would lead to foreign competitors flooding the market. 
A)  Substitutes for Widgets are available in the market. 
B)  The price of materials consumed along with Widgets has gone up. 
C)  A change in the environment is likely to stimulate overall demand for Widgets. 
D)  Competitors have announced that they intend to keep prices at current levels. 
E)  Relaxation of import restrictions would lead to foreign competitors flooding the market.

Question 12

In a natural monopoly, prices tend to be government-regulated.

Accepted Answer

A) True 
 B)False

Question 13

New Vermont underwent a recession two years ago. How might New Vermont's aggregate output have been affected?

Accepted Answer

A recession is defined as a pe

Question 14

Which environment is NOT an important dimension of a business organization's external environment?

Accepted Answer

A)  the political-legal environment 
B)  the sociocultural environment 
C)  the technological environment 
D)  the corporate cultural environment 
E)  the global business environment 
A)  the political-legal environment 
B)  the sociocultural environment 
C)  the technological environment 
D)  the corporate cultural environment 
E)  the global business environment

Question 15

Based on the information above, Tata most likely believed that as a result of recent changes in India's economy, what would be True of a growing number of Indian consumers?

Accepted Answer

A)  They had become even more cost-conscious than ever before. 
B)  They would be willing and able to spend 100,000 rupees on a car. 
C)  They would choose a vehicle with high fuel efficiency primarily because of concern about the natural environment. 
D)  They will eventually prefer models similar to those currently available in the U.S. and Europe. 
E)  They will place a higher value on car safety than fuel economy. 
A)  They had become even more cost-conscious than ever before. 
B)  They would be willing and able to spend 100,000 rupees on a car. 
C)  They would choose a vehicle with high fuel efficiency primarily because of concern about the natural environment. 
D)  They will eventually prefer models similar to those currently available in the U.S. and Europe. 
E)  They will place a higher value on car safety than fuel economy.

Question 16

The Sponeto national bank advocates increasing the money supply to encourage investment within the country. Which of the following, if True, would strengthen the case that this will cause inflation?

Accepted Answer

A)  Jobs will be created. 
B)  Banks will lower interest rates. 
C)  Wages will decrease. 
D)  Foreign investment will be discouraged. 
E)  Only low-technology sectors will benefit. 
A)  Jobs will be created. 
B)  Banks will lower interest rates. 
C)  Wages will decrease. 
D)  Foreign investment will be discouraged. 
E)  Only low-technology sectors will benefit.

Question 17

Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?

Accepted Answer

A)  low unemployment 
B)  stagnant wages 
C)  declining living standards 
D)  cyclical inflation 
E)  limited credit 
A)  low unemployment 
B)  stagnant wages 
C)  declining living standards 
D)  cyclical inflation 
E)  limited credit

Question 18

Deflation, an indication that the economy is contracting, is characterized by price stabilization of goods.

Accepted Answer

A) True 
 B)False

Question 19

Which course of action should the Federal Reserve take if it wishes to reduce inflation and curb consumer spending?

Accepted Answer

A)  The Federal Reserve should buy securities. 
B)  The Federal Reserve should sell securities. 
C)  The Federal Reserve should decrease the reserve requirement. 
D)  The Federal Reserve should lower the discount rate. 
E)  The Federal Reserve should sell securities and lower the discount rate. 
A)  The Federal Reserve should buy securities. 
B)  The Federal Reserve should sell securities. 
C)  The Federal Reserve should decrease the reserve requirement. 
D)  The Federal Reserve should lower the discount rate. 
E)  The Federal Reserve should sell securities and lower the discount rate.

Question 20

What is socialism?

Accepted Answer

Socialism is a partially planned system

Which of the following best describes economic stability?

The CEOs of Company A and B are investigating expansion into new markets, which will provide greater trade volume. Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

Which of the following, if True, would most weaken Jonathan's contention?

Assume that Allied has required Cicada to not handle any of Allied's competitors' products. Which of the following most strongly suggests that this arrangement is legal?

Which of the following best describes nominal GDP?

Which term refers to the total value of all goods and services produced within a given period by a national economy?

Which term refers to the pattern of short-term ups and downs in an economy?

Robert has established a start-up business manufacturing a range of outdoor wear for the leisure market. Which possible scenario would best show that Robert is positioning his business for the global business market?

One of the four elements that are necessary for private enterprise to be carried out is reasonable prices.

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.

Which of the following, if True, would strengthen the argument in favor of a price increase?

In a natural monopoly, prices tend to be government-regulated.

New Vermont underwent a recession two years ago. How might New Vermont's aggregate output have been affected?

Which environment is NOT an important dimension of a business organization's external environment?

Based on the information above, Tata most likely believed that as a result of recent changes in India's economy, what would be True of a growing number of Indian consumers?

The Sponeto national bank advocates increasing the money supply to encourage investment within the country. Which of the following, if True, would strengthen the case that this will cause inflation?

Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?

Deflation, an indication that the economy is contracting, is characterized by price stabilization of goods.

Which course of action should the Federal Reserve take if it wishes to reduce inflation and curb consumer spending?

What is socialism?

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

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 1: The Us Business Environment

Which of the following best describes economic stability?

The CEOs of Company A and B are investigating expansion into new markets, which will provide greater trade volume. Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

Which of the following, if True, would most weaken Jonathan's contention?

Assume that Allied has required Cicada to not handle any of Allied's competitors' products. Which of the following most strongly suggests that this arrangement is legal?

Which of the following best describes nominal GDP?

Which term refers to the total value of all goods and services produced within a given period by a national economy?

Which term refers to the pattern of short-term ups and downs in an economy?

Robert has established a start-up business manufacturing a range of outdoor wear for the leisure market. Which possible scenario would best show that Robert is positioning his business for the global business market?

One of the four elements that are necessary for private enterprise to be carried out is reasonable prices.

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.

Which of the following, if True, would strengthen the argument in favor of a price increase?

In a natural monopoly, prices tend to be government-regulated.

New Vermont underwent a recession two years ago. How might New Vermont's aggregate output have been affected?

Which environment is NOT an important dimension of a business organization's external environment?

Based on the information above, Tata most likely believed that as a result of recent changes in India's economy, what would be True of a growing number of Indian consumers?

The Sponeto national bank advocates increasing the money supply to encourage investment within the country. Which of the following, if True, would strengthen the case that this will cause inflation?

Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?

Deflation, an indication that the economy is contracting, is characterized by price stabilization of goods.

Which course of action should the Federal Reserve take if it wishes to reduce inflation and curb consumer spending?

What is socialism?

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

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters