Question 1

Why are entrepreneurs important to the economy?

Accepted Answer

Entrepreneurs are important to the economy because they are willing to take the risks necessary to bring ideas for new goods,services,and business practices into the marketplace.They bring together all the factors of production to produce new products.

Question 2

________________ can be harmful if individuals' incomes do not increase at the same pace as rising prices because it reduces their buying power.

Accepted Answer

A)  Deflation 
B)  Stagflation 
C)  Inflation 
D)  Economic expansion 
E)  Economic contraction 
A)  Deflation 
B)  Stagflation 
C)  Inflation 
D)  Economic expansion 
E)  Economic contraction C

Question 3

Explain and demonstrate the relationship between supply and demand for Mrs.Acres Homemade Pies.

Accepted Answer

When Shelly Acres started selling her pies,she had to find her own customers.None of the local restaurants and supermarkets knew her products,so she had to offer an affordable product to interest restaurants and supermarkets in her products.As demand increased,Shelly started producing more pies to meet this demand.At the moment,she cannot supply all the demand.A way to decrease this demand is to increase prices.She can also increase the production level to meet the demand.

Question 4

An oligopoly exists when there are many small businesses selling one standardized product.

Accepted Answer

A) True 
 B)False

Question 5

When Target has a sale on bed linens,

Accepted Answer

A)  consumers will not demand more than normal. 
B)  the store will not supply more linens than it normally does. 
C)  consumers will demand more linens. 
D)  the manufacturer will halt production. 
E)  consumers will demand fewer linens than normal. 
A)  consumers will not demand more than normal. 
B)  the store will not supply more linens than it normally does. 
C)  consumers will demand more linens. 
D)  the manufacturer will halt production. 
E)  consumers will demand fewer linens than normal.

Question 6

Economic contraction occurs when

Accepted Answer

A)  spending increases. 
B)  spending declines. 
C)  jobs increase. 
D)  inflation decreases. 
E)  unemployment falls. 
A)  spending increases. 
B)  spending declines. 
C)  jobs increase. 
D)  inflation decreases. 
E)  unemployment falls.

Question 7

The equilibrium price is represented by the point where a product's supply and demand curves intersect.

Accepted Answer

A) True 
 B)False

Question 8

The goal of business is to earn

Accepted Answer

A)  respect. 
B)  resources. 
C)  profits. 
D)  responsibility. 
E)  independence. 
A)  respect. 
B)  resources. 
C)  profits. 
D)  responsibility. 
E)  independence.

Question 9

____ have the most to lose if the business fails to make a profit.

Accepted Answer

A)  Employees 
B)  Owners 
C)  Banks 
D)  Customers 
E)  Accountants 
A)  Employees 
B)  Owners 
C)  Banks 
D)  Customers 
E)  Accountants

Question 10

What is an economic contraction,and what can it lead to?

Accepted Answer

Economic contraction occurs when spendin

Question 11

Are there signs that business ethics are improving over time? If so,what are they? If not,what areas need improvement?

Accepted Answer

Studies have indicated that the presence

Question 12

Financial resources are also known as _______________.

Accepted Answer

A)  capital 
B)  labor 
C)  barter 
D)  economics 
E)  exchange 
A)  capital 
B)  labor 
C)  barter 
D)  economics 
E)  exchange

Question 13

The American economic system is best described as _______ because the government regulates business to preserve competition and protect consumers and employees.

Accepted Answer

A)  socialism 
B)  laissez-faire capitalism 
C)  modified capitalism 
D)  communism 
E)  business ownership 
A)  socialism 
B)  laissez-faire capitalism 
C)  modified capitalism 
D)  communism 
E)  business ownership

Question 14

Discuss the issues involved in measuring a country's economy.

Accepted Answer

Countries measure the state of their eco

Question 15

Shelly's business was successful for all of the following reasons except

Accepted Answer

A)  quality product. 
B)  appropriate incentives for employees. 
C)  productive employees. 
D)  employees who enjoyed being part of a new business. 
E)  she had no competitors. 
A)  quality product. 
B)  appropriate incentives for employees. 
C)  productive employees. 
D)  employees who enjoyed being part of a new business. 
E)  she had no competitors.

Question 16

Economic expansion occurs when

Accepted Answer

A)  fewer goods and services are produced than consumers demand. 
B)  an economy is growing and people are spending more money. 
C)  a nation's standard of living drops quickly. 
D)  employment levels decline over time. 
E)  prices begin to rise and incomes begin to fall. 
A)  fewer goods and services are produced than consumers demand. 
B)  an economy is growing and people are spending more money. 
C)  a nation's standard of living drops quickly. 
D)  employment levels decline over time. 
E)  prices begin to rise and incomes begin to fall.

Question 17

Monopolistic competition exists when there is only one producer of a product in a given market.

Accepted Answer

A) True 
 B)False

Question 18

Businesses differ from nonprofit organizations in that a business's focus is on

Accepted Answer

A)  price. 
B)  goods. 
C)  profit. 
D)  organization. 
E)  plans. 
A)  price. 
B)  goods. 
C)  profit. 
D)  organization. 
E)  plans.

Question 19

After World War II,the United States became an agricultural economy.

Accepted Answer

A) True 
 B)False

Question 20

Finance refers to all activities concerned with obtaining money and using it effectively.

Accepted Answer

A) True 
 B)False

Why are entrepreneurs important to the economy?

________________ can be harmful if individuals' incomes do not increase at the same pace as rising prices because it reduces their buying power.

Explain and demonstrate the relationship between supply and demand for Mrs.Acres Homemade Pies.

An oligopoly exists when there are many small businesses selling one standardized product.

When Target has a sale on bed linens,

Economic contraction occurs when

The equilibrium price is represented by the point where a product's supply and demand curves intersect.

The goal of business is to earn

____ have the most to lose if the business fails to make a profit.

What is an economic contraction,and what can it lead to?

Are there signs that business ethics are improving over time? If so,what are they? If not,what areas need improvement?

Financial resources are also known as _______________.

The American economic system is best described as _______ because the government regulates business to preserve competition and protect consumers and employees.

Discuss the issues involved in measuring a country's economy.

Shelly's business was successful for all of the following reasons except

Economic expansion occurs when

Monopolistic competition exists when there is only one producer of a product in a given market.

Businesses differ from nonprofit organizations in that a business's focus is on

After World War II,the United States became an agricultural economy.

Finance refers to all activities concerned with obtaining money and using it effectively.

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 1: The Dynamics of Business and Economics

Why are entrepreneurs important to the economy?

________________ can be harmful if individuals' incomes do not increase at the same pace as rising prices because it reduces their buying power.

Explain and demonstrate the relationship between supply and demand for Mrs.Acres Homemade Pies.

An oligopoly exists when there are many small businesses selling one standardized product.

When Target has a sale on bed linens,

Economic contraction occurs when

The equilibrium price is represented by the point where a product's supply and demand curves intersect.

The goal of business is to earn

____ have the most to lose if the business fails to make a profit.

What is an economic contraction,and what can it lead to?

Are there signs that business ethics are improving over time? If so,what are they? If not,what areas need improvement?

Financial resources are also known as _______________.

The American economic system is best described as _______ because the government regulates business to preserve competition and protect consumers and employees.

Discuss the issues involved in measuring a country's economy.

Shelly's business was successful for all of the following reasons except

Economic expansion occurs when

Monopolistic competition exists when there is only one producer of a product in a given market.

Businesses differ from nonprofit organizations in that a business's focus is on

After World War II,the United States became an agricultural economy.

Finance refers to all activities concerned with obtaining money and using it effectively.

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters