Question 1

Shawn Sine decides to start his own business. How likely is Shawn to still be operating a successful business in seven years?

Accepted Answer

A)  It depends on whether it is an e-business or not. 
B)  It is very likely because most small businesses are successful. 
C)  It is likely because the chance of failure is nearly equal to the chance for success. 
D)  It is unlikely because over half of all new small businesses fail. 
E)  It is very unlikely because almost all new businesses fail within the first three years. 
A)  It depends on whether it is an e-business or not. 
B)  It is very likely because most small businesses are successful. 
C)  It is likely because the chance of failure is nearly equal to the chance for success. 
D)  It is unlikely because over half of all new small businesses fail. 
E)  It is very unlikely because almost all new businesses fail within the first three years.

Question 2

____ is a loose, subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

Accepted Answer

A)  Employment success 
B)  Standard of wealth 
C)  Standard of living 
D)  Economic satisfaction 
E)  Satisfaction economic factor 
A)  Employment success 
B)  Standard of wealth 
C)  Standard of living 
D)  Economic satisfaction 
E)  Satisfaction economic factor

Question 3

The concept of sustainability focuses on which of the following?

Accepted Answer

A)  The needs of the present without compromising the future 
B)  The needs of the future without compromising the present 
C)  The needs of the firm to make a profit in the present 
D)  The needs of future employees 
E)  The needs of the government in the future 
A)  The needs of the present without compromising the future 
B)  The needs of the future without compromising the present 
C)  The needs of the firm to make a profit in the present 
D)  The needs of future employees 
E)  The needs of the government in the future

Question 4

The monetary contributions that the owners of Intel pay for shares of the company's stock are ____ resources for Intel.

Accepted Answer

A)  material 
B)  financial 
C)  informational 
D)  human 
E)  manufacturing 
A)  material 
B)  financial 
C)  informational 
D)  human 
E)  manufacturing

Question 5

Steve Wilson, a chef at a major restaurant in San Francisco, wants to start his own restaurant. He surveys the market, finds a suitable location, and calculates how much money he will need to lease the building and purchase the necessary equipment and supplies. Steve visits his banker and requests a loan. The money Steve will receive from the loan and the resources he will purchase with it are known as

Accepted Answer

A)  capital. 
B)  profit. 
C)  revenue. 
D)  collateral. 
E)  stock. 
A)  capital. 
B)  profit. 
C)  revenue. 
D)  collateral. 
E)  stock.

Question 6

What is profit, and why is it important to a business?

Accepted Answer

Profit is the financial gain that is rea

Question 7

The government uses taxes to purchase resources and products required to provide services.

Accepted Answer

A) True 
 B)False

Question 8

What is real gross domestic product, and how does it differ from gross domestic product?

Accepted Answer

Real gross domestic product (GDP) is a m

Question 9

As the price of jeans rises, manufacturers that make and sell jeans are likely to

Accepted Answer

A)  decrease production and thus decrease the supply. 
B)  increase production and thus increase the supply. 
C)  do nothing to influence the available supply of jeans. 
D)  discontinue producing jeans in favor of a different product. 
E)  increase production to influence the demand for jeans. 
A)  decrease production and thus decrease the supply. 
B)  increase production and thus increase the supply. 
C)  do nothing to influence the available supply of jeans. 
D)  discontinue producing jeans in favor of a different product. 
E)  increase production to influence the demand for jeans.

Question 10

____ resources are the individuals who provide labor for an organization in exchange for wages.

Accepted Answer

A)  Human 
B)  Material 
C)  Labor 
D)  Financial 
E)  Informational 
A)  Human 
B)  Material 
C)  Labor 
D)  Financial 
E)  Informational

Question 11

All of the following are characteristics of communist countries such as Cuba except

Accepted Answer

A)  intensive production of goods the government needs. 
B)  all workers contribute to society according to their ability. 
C)  frequent shortages of consumer goods. 
D)  government ownership of almost all economic resources. 
E)  an adequate supply of consumer goods. 
A)  intensive production of goods the government needs. 
B)  all workers contribute to society according to their ability. 
C)  frequent shortages of consumer goods. 
D)  government ownership of almost all economic resources. 
E)  an adequate supply of consumer goods.

Question 12

In order for a business to be successful, it must be organized, it must satisfy needs, and it must make a profit.

Accepted Answer

A) True 
 B)False

Question 13

If all leading corporations in the soft-drink industry merged, this would

Accepted Answer

A)  encourage pure competition. 
B)  encourage monopolistic competition. 
C)  lead to an oligopoly. 
D)  create a limited monopoly. 
E)  create a monopoly. 
A)  encourage pure competition. 
B)  encourage monopolistic competition. 
C)  lead to an oligopoly. 
D)  create a limited monopoly. 
E)  create a monopoly.

Question 14

The study of an individual's economic decisions would be an example of

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  fiscal policy. 
D)  monetary policy. 
E)  national economic policy. 
A)  macroeconomics. 
B)  microeconomics. 
C)  fiscal policy. 
D)  monetary policy. 
E)  national economic policy.

Question 15

Approximately what portion of our nation's total production is made up of consumer goods?

Accepted Answer

A)  70 percent 
B)  50 percent 
C)  40 percent 
D)  20 percent 
E)  10 percent 
A)  70 percent 
B)  50 percent 
C)  40 percent 
D)  20 percent 
E)  10 percent

Question 16

What must a monopoly, such as a public utility, account for when setting its prices?

Accepted Answer

A)  A monopoly, because it has no competitors, can set prices as high as it likes. 
B)  A monopoly must consider customer demand, and then set prices at the most profitable level. 
C)  A monopoly must take into account what its top competitors are charging for the same product or service. 
D)  A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries. 
E)  A monopoly must look at the importance of each client, and then determine what respective rate each will be charged. 
A)  A monopoly, because it has no competitors, can set prices as high as it likes. 
B)  A monopoly must consider customer demand, and then set prices at the most profitable level. 
C)  A monopoly must take into account what its top competitors are charging for the same product or service. 
D)  A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries. 
E)  A monopoly must look at the importance of each client, and then determine what respective rate each will be charged.

Question 17

Public utilities are often referred to as

Accepted Answer

A)  sole proprietorships. 
B)  monopolistic competitors. 
C)  monopolies. 
D)  oligopolies. 
E)  socialistic. 
A)  sole proprietorships. 
B)  monopolistic competitors. 
C)  monopolies. 
D)  oligopolies. 
E)  socialistic.

Question 18

Raw materials, buildings, and machinery are ____ resources.

Accepted Answer

A)  human 
B)  financial 
C)  information 
D)  major 
E)  material 
A)  human 
B)  financial 
C)  information 
D)  major 
E)  material

Question 19

How can online networking improve your chances of success in the business world?

Accepted Answer

Online networking can significantly impr

Question 20

The nationalization of key industries in countries such as Sweden and India is indicative of a(n) ____ economy.

Accepted Answer

A)  socialist 
B)  communist 
C)  capitalist 
D)  nationalist 
E)  industrialized 
A)  socialist 
B)  communist 
C)  capitalist 
D)  nationalist 
E)  industrialized

Exam 1: Exploring the World of Business and Economics

Shawn Sine decides to start his own business. How likely is Shawn to still be operating a successful business in seven years?

____ is a loose, subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

The concept of sustainability focuses on which of the following?

The monetary contributions that the owners of Intel pay for shares of the company's stock are ____ resources for Intel.

What is profit, and why is it important to a business?

The government uses taxes to purchase resources and products required to provide services.

What is real gross domestic product, and how does it differ from gross domestic product?

As the price of jeans rises, manufacturers that make and sell jeans are likely to

____ resources are the individuals who provide labor for an organization in exchange for wages.

All of the following are characteristics of communist countries such as Cuba except

In order for a business to be successful, it must be organized, it must satisfy needs, and it must make a profit.

If all leading corporations in the soft-drink industry merged, this would

The study of an individual's economic decisions would be an example of

Approximately what portion of our nation's total production is made up of consumer goods?

What must a monopoly, such as a public utility, account for when setting its prices?

Public utilities are often referred to as

Raw materials, buildings, and machinery are ____ resources.

How can online networking improve your chances of success in the business world?

The nationalization of key industries in countries such as Sweden and India is indicative of a(n) ____ economy.

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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