Exam 1: Exploring the World of Business and Economics

What three activities must a business perform in order to be successful? Briefly describe each of these and why each is essential to business success.

A copyright of a product exists indefinitely.

Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.

The use of the factory system in the United States helped to usher in the

Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work. Chris seems to value

A person who risks his or her time, effort, and money to start and operate a business is called a(n)

The rivalry among businesses for sales to potential customers

The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a ____ economy.

All of the following would typically be considered consumer products except a

A furniture manufacturer like Thomasville would be concerned with the producer price index because it

An executive at a U.S. steel company uses growth in gross domestic product as one way to develop trends in industry steel use, so he records GDP change for each year on a graph. However, the executive's figures are considerably higher than those of the staff economist, who also has drawn a graph. This difference is most likely the result of

Amazon.com has the following rights: to make a profit for its stockholders; to market a wide variety of products; and, to compete with other online retailers. Amazon.com operates in a(n) ____ system.

Of the following, which is not considered a basic management function necessary to be an effective manager?

When a business distributes profits to business owners, these profits become household income and are removed from the circular flow of the economy.

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct?

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

During the 1930s, government became deeply involved in business for the first time.

People buy goods and services simply to own them.

Profit is the payment business owners receive for assuming the risks of ownership.

Diane is passionate about soccer and decides to open her own soccer sporting goods store. She invests her money, time, and effort into making the store a success. Diane can be best described as a(n)