Exam 1: Exploring the World of Business and Economics

The maker of Hanes pantyhose attempts to set its product apart from the competition.As a result,the company obtained some limited control over the price of its product.Achieving price control in this manner is known as

When economists study the national economy or global economy,they are using a(n)____ approach.

Home Inspirations Mary 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,Mary plans on taking over the business.Mary 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.Mary 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.Mary 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.Mary's goal of offering products with unique features and special services is called

Service businesses employ approximately ___ percent of the U.S.work force.

According to Adam Smith,under laissez-faire capitalism,each person should be allowed to work toward his or her own economic gain without government interference.

For the U.S.government to provide services,it collects revenue from

Examples of command economies include

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

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

When General Mills and a few other firms dominate the American cereal market,this is an example of

How the price of homes affects the number of homes built and sold would be an economic issue studied in a Macroeconomics course.

As the price of jeans rises,Lee is likely to

In Sweden,businesses are free to sell any legal product they want in any manner they desire as long as it does not violate any laws or ordinances.The nation has a very liberal welfare policy with most citizens,even at an early age,receiving monthly pension checks from the government.What type of economic system is employed in Sweden?

​Weyerheuser owns vast acres of land in Washington State near Mt.Saint Helens where it grows trees for harvesting to make everything from lumber to build houses to newsprint for newspapers. Which of the following best represents some of the material resources of this business.

When a firm's sales revenues are greater than its expenses,the firm has a

Kroger grocery stores would most likely be classified as

Households provide all of the following resources to businesses except

Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the ____ stage of the business cycle.

Explain how the basic economic questions are answered in capitalistic and command economies.

Home Inspirations Mary 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,Mary plans on taking over the business.Mary 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.Mary 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.Mary 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.Home Inspirations currently operates in a ____ environment.