Exam 1: Exploring the World of Business and Economics

Increased competition from firms in other nations is an example of the

When Toyota experienced declining sales as a result of quality and safety issues, it began offering buyer incentives to new-car buyers. Nearly immediately, Ford and General Motors began similar promotions. These businesses

What resource tells the managers of a business how effectively the other three resources are being combined and used?

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

All except ____ are considered important, major events that shaped the nation's economy during the period of 1940 to 2000.

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

The current technology environment

Home Inspirations Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Hailey plans on taking over the business. Hailey is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, any other time, sales are not so good. Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increase, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company. -Refer to Home Inspirations. Hailey's goal of offering products with unique features and special services is called

Generally there are three types of businesses―manufacturing businesses, service businesses, and marketing intermediaries.

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

In France, income taxes are reduced so that individuals will have more income to spend, which in turn will stimulate the economy. This is an example of

For a Pepperidge Farm production facility, managers and employees would be

Which of the following is not one of the four states included in a typical business cycle?

Which of the following industries would most likely have the characteristics of an oligopoly?

The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.

In a monopoly situation, there is no close substitute for the product or service.

Best Buy stores would most likely be classified as

A business' efforts to sustain the planet and the business' participation in ecological movements are part of a firm's

In the last decade of the century, ____ became a major force in the economy in regard to business.

Inflation is a general rise in the level of prices experienced by people in a nation.