Exam 1: Exploring the World of Business and Economics

The Miller family owns and operates an interior decorating business.Henry installs hardwood floors and chair rails;Chloe reupholsters furniture and takes care of the finances;Charles designs and makes draperies and pillows;and Mary coordinates the overall color,look,and design.The process the Miller family uses to run its business is

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

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government.He does not like his job but is not allowed other options.Tim must purchase necessities for his family at fixed prices.The country Tim lives in can be described as a ____ economy.

Fluctuations in a nation's economy are referred to as its

Sherry Garcia 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 Sherry correct?

When an individual chooses his or her ideal career,it is most likely a reflection of one's

Adam Smith is the person who actually organized American business as we know it today.

A market economy is sometimes referred to as a command economy.

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

In the early 1980s,Craig Anderson,a corporate finance manager,was faced with which of the following problems?

Sony is most correctly classified as a marketing intermediary type of business.

Which of the following is uncharacteristic of a socialist economy?

The total dollar value of all goods and services produced by all people within the boundaries of a country is called

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

Margaret has just completed college and is considering tactics to be employed in a profession that interests her,will permit her to use her abilities,allow her to grow,and will challenge her.She is not quite sure what steps to take to find a job that will fulfill these needs.Which of the following would be good steps to take to find a job that will meet Margaret's needs?

Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

Karl Marx is known as the father of communism.

Which of the following is not a feature of laissez faire capitalism?

The government uses tax dollars to

Gabby 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.Gabby can be best described as a(n)