Question 1

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

Accepted Answer

A)  colonial period. 
B)  Industrial Revolution. 
C)  Great Depression. 
D)  Renaissance. 
E)  twentieth century. 
A)  colonial period. 
B)  Industrial Revolution. 
C)  Great Depression. 
D)  Renaissance. 
E)  twentieth century. B

Question 2

In a socialist economy,the key industries are owned and controlled by the government.

Accepted Answer

A) True 
 B)False  True

Question 3

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 4

____ is the process of developing and promoting the differences between one's products and other similar products.

Accepted Answer

A)  Advertising 
B)  Monopolistic competition 
C)  Product differentiation 
D)  Branding 
E)  Goods distinction 
A)  Advertising 
B)  Monopolistic competition 
C)  Product differentiation 
D)  Branding 
E)  Goods distinction

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Perfect competition is the market situation in which a product has many buyers and sellers,and no single buyer or seller is powerful enough to affect a product's price.

Accepted Answer

A) True 
 B)False

Question 7

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 8

If the demand for a product declines,what happens to the price of the product?

Accepted Answer

A)  The price stays the same. 
B)  The price decreases. 
C)  The price increases. 
D)  The equilibrium price will be maintained. 
E)  The market price will be maintained. 
A)  The price stays the same. 
B)  The price decreases. 
C)  The price increases. 
D)  The equilibrium price will be maintained. 
E)  The market price will be maintained.

Question 9

During which phase of the business cycle would a company like General Electric introduce new products?

Accepted Answer

A)  Repression 
B)  Peak 
C)  Recession 
D)  Depression 
E)  Recovery 
A)  Repression 
B)  Peak 
C)  Recession 
D)  Depression 
E)  Recovery

Question 10

As computers gained popularity,the ____ typewriters decreased along with the price.

Accepted Answer

A)  demand for 
B)  supply of 
C)  equilibrium of 
D)  productivity of 
E)  monopoly associated with 
A)  demand for 
B)  supply of 
C)  equilibrium of 
D)  productivity of 
E)  monopoly associated with

Question 11

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

Accepted Answer

A)  Economics 
B)  Business 
C)  Marketing 
D)  Capitalism 
E)  Finance 
A)  Economics 
B)  Business 
C)  Marketing 
D)  Capitalism 
E)  Finance

Question 12

D'Jeanea inherited money from her grandparents in 2007 and invested it in the stock market.In 2008 the market dropped drastically.During the recession that followed,her portfolio lost thousands of dollars in value even though all of the companies she invested in remained solvent.D'Jeanea left her money in the market and kept it invested in the same companies as 2007.What is the most likely state of her portfolio today?

Accepted Answer

A)  It has most likely gained value due to the uptick in the business cycle and economic growth experienced since 2011 and it is no doubt worth as much or more than it was worth in 2007. 
B)  It has continued to lose value. 
C)  It has grown then faltered and decreased in value due to the recovery and is most likely worth the same or less than it was worth in 2007. 
D)  Since an economic recovery generally lasts an average of 24 months,her portfolio gains in value and is currently on the down-turn as the economy enters another downward cycle. 
A)  It has most likely gained value due to the uptick in the business cycle and economic growth experienced since 2011 and it is no doubt worth as much or more than it was worth in 2007. 
B)  It has continued to lose value. 
C)  It has grown then faltered and decreased in value due to the recovery and is most likely worth the same or less than it was worth in 2007. 
D)  Since an economic recovery generally lasts an average of 24 months,her portfolio gains in value and is currently on the down-turn as the economy enters another downward cycle.

Question 13

The producer price index is an accurate predictor of

Accepted Answer

A)  future changes in the consumer price index. 
B)  the level of unemployment. 
C)  prime interest rates. 
D)  Internet business activity. 
E)  an individual's standard of living. 
A)  future changes in the consumer price index. 
B)  the level of unemployment. 
C)  prime interest rates. 
D)  Internet business activity. 
E)  an individual's standard of living.

Question 14

The organized effort of individuals to produce and sell,for a profit,the goods and services that satisfy society's needs is called

Accepted Answer

A)  consumerism. 
B)  the economy. 
C)  capitalism. 
D)  business. 
E)  the workplace. 
A)  consumerism. 
B)  the economy. 
C)  capitalism. 
D)  business. 
E)  the workplace.

Question 15

In our free-enterprise system,federal and state governments decide what products and services to provide.

Accepted Answer

A) True 
 B)False

Question 16

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 17

A natural resource,as recognized by economists,would include which of the following?

Accepted Answer

A)  Crude oil 
B)  Buildings 
C)  Tools 
D)  Machinery 
E)  Equipment 
A)  Crude oil 
B)  Buildings 
C)  Tools 
D)  Machinery 
E)  Equipment

Question 18

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

Accepted Answer

A)  free enterprise system. 
B)  stakeholder responsibilities. 
C)  factors of production. 
D)  social responsibility. 
E)  business cycle. 
A)  free enterprise system. 
B)  stakeholder responsibilities. 
C)  factors of production. 
D)  social responsibility. 
E)  business cycle.

Question 19

Which of the following represents the biggest customer of American business?

Accepted Answer

A)  Government 
B)  Other businesses 
C)  Foreign governments 
D)  Consumers 
E)  The military 
A)  Government 
B)  Other businesses 
C)  Foreign governments 
D)  Consumers 
E)  The military

Question 20

William and Carrie go to the local Farmer's Market every Saturday morning.The market has many vegetable stands,many flower stalls,many artisan craft stalls selling handmade soaps and scented oils,and many stalls selling yard ornaments.All of the sellers within a sales category (vegetables,flowers,artisan crafts,and ornaments)sell their goods for essentially the same price,with little variation.Carrie comments to William that the vegetable stands enjoy perfect competition.What factors did she take into consideration when making this comment?

Accepted Answer

A)  She is considering that there are many buyers and sellers of a product and no single buyer or seller is powerful enough to affect the price of that product. 
B)  She is considering that there are many sellers and few buyers so the sellers set their own perfect price. 
C)  She is considering that the vegetables are in perfect condition so the competition should also be perfect. 
D)  She is considering that vegetables,flowers,and crafts are different products and thus one could not be substituted for another so the vegetable stands are in a perfect location with a perfect market to sell their produce. 
A)  She is considering that there are many buyers and sellers of a product and no single buyer or seller is powerful enough to affect the price of that product. 
B)  She is considering that there are many sellers and few buyers so the sellers set their own perfect price. 
C)  She is considering that the vegetables are in perfect condition so the competition should also be perfect. 
D)  She is considering that vegetables,flowers,and crafts are different products and thus one could not be substituted for another so the vegetable stands are in a perfect location with a perfect market to sell their produce.

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

In a socialist economy,the key industries are owned and controlled by the government.

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

____ is the process of developing and promoting the differences between one's products and other similar products.

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

Perfect competition is the market situation in which a product has many buyers and sellers,and no single buyer or seller is powerful enough to affect a product's price.

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.

If the demand for a product declines,what happens to the price of the product?

During which phase of the business cycle would a company like General Electric introduce new products?

As computers gained popularity,the ____ typewriters decreased along with the price.

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

The producer price index is an accurate predictor of

The organized effort of individuals to produce and sell,for a profit,the goods and services that satisfy society's needs is called

In our free-enterprise system,federal and state governments decide what products and services to provide.

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

A natural resource,as recognized by economists,would include which of the following?

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

Which of the following represents the biggest customer of American business?

Ethics and Social Responsibility in Business

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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters

Exam 1: Exploring the World of Business and Economics

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

In a socialist economy,the key industries are owned and controlled by the government.

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

____ is the process of developing and promoting the differences between one's products and other similar products.

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

Perfect competition is the market situation in which a product has many buyers and sellers,and no single buyer or seller is powerful enough to affect a product's price.

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.

If the demand for a product declines,what happens to the price of the product?

During which phase of the business cycle would a company like General Electric introduce new products?

As computers gained popularity,the ____ typewriters decreased along with the price.

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

The producer price index is an accurate predictor of

The organized effort of individuals to produce and sell,for a profit,the goods and services that satisfy society's needs is called

In our free-enterprise system,federal and state governments decide what products and services to provide.

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

A natural resource,as recognized by economists,would include which of the following?

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

Which of the following represents the biggest customer of American business?

Ethics and Social Responsibility in Business

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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters