Question 1

Capital or capital goods as recognized by economists would include all of the following except

Accepted Answer

A)  crude oil. 
B)  facilities. 
C)  money. 
D)  machinery. 
E)  computer equipment. 
A)  crude oil. 
B)  facilities. 
C)  money. 
D)  machinery. 
E)  computer equipment. A

Question 2

France, a socialist economy, does not have which of the following goals?

Accepted Answer

A)  Equitable distribution of income 
B)  Elimination of poverty 
C)  Reduction of government regulations 
D)  Elimination of economic waste 
E)  Distribution of social services to all who need them 
A)  Equitable distribution of income 
B)  Elimination of poverty 
C)  Reduction of government regulations 
D)  Elimination of economic waste 
E)  Distribution of social services to all who need them C

Question 3

During 2012, Just-the-One Jewelry had sales revenues of $1,500,000. This retailer also had expenses that totaled $800,000. What is the firm's profit or loss amount?

Accepted Answer

A)  $2,300,000 
B)  $1,500,000 
C)  $800,000 
D)  $700,000 
E)  It is impossible to calculate profit or loss with the above information. 
A)  $2,300,000 
B)  $1,500,000 
C)  $800,000 
D)  $700,000 
E)  It is impossible to calculate profit or loss with the above information. D

Question 4

Consumer goods make up about one-third of our nation's gross national product.

Accepted Answer

A) True 
 B)False

Question 5

Productivity can best be described as

Accepted Answer

A)  a country's total output. 
B)  the efficiency of a company's operations. 
C)  economic growth in a country. 
D)  the average level of output per worker per hour. 
E)  the average level of output per worker per year. 
A)  a country's total output. 
B)  the efficiency of a company's operations. 
C)  economic growth in a country. 
D)  the average level of output per worker per hour. 
E)  the average level of output per worker per year.

Question 6

Specialization is meant to increase the efficiency of industrial workers.

Accepted Answer

A) True 
 B)False

Question 7

For firms like Walmart, competition

Accepted Answer

A)  is not a factor that must be considered in a free-market economy. 
B)  affects smaller businesses but not large chain operations. 
C)  affects larger chain operations but not smaller businesses. 
D)  is a rivalry among businesses for sales to potential customers. 
E)  is a problem that has been eliminated in the twenty-first century. 
A)  is not a factor that must be considered in a free-market economy. 
B)  affects smaller businesses but not large chain operations. 
C)  affects larger chain operations but not smaller businesses. 
D)  is a rivalry among businesses for sales to potential customers. 
E)  is a problem that has been eliminated in the twenty-first century.

Question 8

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

Accepted Answer

A) True 
 B)False

Question 9

When economists study the national economy or global economy, they are using a ____ approach.

Accepted Answer

A)  macroeconomics 
B)  microeconomics 
C)  fiscal 
D)  monetary 
E)  intuitive 
A)  macroeconomics 
B)  microeconomics 
C)  fiscal 
D)  monetary 
E)  intuitive

Question 10

Economics is the study of how wealth is created and distributed.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is false?

Accepted Answer

A)  One way to reduce costs is to increase productivity. 
B)  Increased productivity can lead to higher manufacturing costs. 
C)  Increased productivity is a concern for nations throughout the world. 
D)  Productivity is expected to improve as more economic activity is transferred to the Internet. 
E)  Productivity growth enables American business firms to compete more effectively with other nations in a competitive world. 
A)  One way to reduce costs is to increase productivity. 
B)  Increased productivity can lead to higher manufacturing costs. 
C)  Increased productivity is a concern for nations throughout the world. 
D)  Productivity is expected to improve as more economic activity is transferred to the Internet. 
E)  Productivity growth enables American business firms to compete more effectively with other nations in a competitive world.

Question 12

Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer base. He was happy to have this opportunity because it was a dream that he had always had. He had always wanted to make his own decisions about what his company would produce and how. The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
-Refer to Satellite Communications. Which company has the correct objective?

Accepted Answer

A)  Satellite Communications 
B)  Universal Communications 
C)  Both of them 
D)  None of them 
E)  Not enough information is provided. 
A)  Satellite Communications 
B)  Universal Communications 
C)  Both of them 
D)  None of them 
E)  Not enough information is provided.

Question 13

Adam Smith developed the concept of the invisible hand to explain how all economic activity should be based on a nation's needs and not the individual's needs.

Accepted Answer

A) True 
 B)False

Question 14

An entrepreneur combines four kinds of resources into a business. What would be the effect on the business if any one were left out?

Accepted Answer

The four kinds of resources that an entr

Question 15

Typical service businesses in the U.S. include real estate, repair companies, and restaurants.

Accepted Answer

A) True 
 B)False

Question 16

According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference.

Accepted Answer

A) True 
 B)False

Question 17

What effect did the Industrial Revolution and the golden age of invention have on the development of American business?

Accepted Answer

The Industrial Revolution and the golden

Question 18

Today, managers and employees are no longer concerned about cultural diversity.

Accepted Answer

A) True 
 B)False

Question 19

When consumers spend their money to purchase Apple iPads or computers with an Intel processor, or when they discontinue buying such items as compact discs, they are telling resource owners

Accepted Answer

A)  how to produce. 
B)  for whom to produce. 
C)  what to produce. 
D)  when to produce. 
E)  to avoid faddish products. 
A)  how to produce. 
B)  for whom to produce. 
C)  what to produce. 
D)  when to produce. 
E)  to avoid faddish products.

Question 20

The national debt in the United States is about $15.2 trillion.

Accepted Answer

A) True 
 B)False

Exam 1: Exploring the World of Business and Economics

Capital or capital goods as recognized by economists would include all of the following except

France, a socialist economy, does not have which of the following goals?

During 2012, Just-the-One Jewelry had sales revenues of $1,500,000. This retailer also had expenses that totaled $800,000. What is the firm's profit or loss amount?

Consumer goods make up about one-third of our nation's gross national product.

Productivity can best be described as

Specialization is meant to increase the efficiency of industrial workers.

For firms like Walmart, competition

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

When economists study the national economy or global economy, they are using a ____ approach.

Economics is the study of how wealth is created and distributed.

Which of the following statements is false?

Adam Smith developed the concept of the invisible hand to explain how all economic activity should be based on a nation's needs and not the individual's needs.

An entrepreneur combines four kinds of resources into a business. What would be the effect on the business if any one were left out?

Typical service businesses in the U.S. include real estate, repair companies, and restaurants.

According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference.

What effect did the Industrial Revolution and the golden age of invention have on the development of American business?

Today, managers and employees are no longer concerned about cultural diversity.

When consumers spend their money to purchase Apple iPads or computers with an Intel processor, or when they discontinue buying such items as compact discs, they are telling resource owners

The national debt in the United States is about $15.2 trillion.

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: 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

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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