Exam 1: The Foundations of Business

If the quantity demanded for cars is lower than the quantity supplied, we can expect that:

The unemployment rate is the percentage of the labor force that is underemployed and no longer looking for work.

Weight Off, a local weight-loss clinic, maintains a clientele of more than 200 busy executives who travel frequently and need specialized diet and exercise regimes. The activities needed to operate this business include all of the following except _____.

The sole regional supplier of Gasanol, a fuel made of gasoline and soy oil, operates in a(n) _____ market.

The activities needed to operate a business can be divided into a number of _____.

Because they operate in a(n) _____ industry, a fare decrease at American Airlines will likely result in decreases at other carriers.

What does perfect competition mean

A _____ is any activity that provides goods or services to consumers for the purpose of making a profit.

Managerial accountants prepare financial statements to help users, both inside and outside of the organization, assess its financial strengths.

As a producer and seller of athletic shoes, apparel, and equipment, Nike sells _____.

The study of the economy as a whole is called _____.

One of the primary roles of management is investing money back into the business.

Connor Industries Inc. constantly scans the environment to keep ahead of competition and to survive as a business. The owners seek statistics that provide valuable information about the future of the economy for periods ranging from three to twelve months. Knowing the _____ is of great benefit to Connor.

SCENARIO-BASED New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products. -Having plotted both the supply curve and the demand curve for a drug on one graph, New Age executives can determine its equilibrium price. At this point, all patients will be equally able to pay for the drug regardless of the quantity supplied by the company.

The ups and downs due to the expansion and contraction of the economy constitute the _____.

SCENARIO-BASED Soup, Salad, & Sandwich is a regional chain of restaurants in the northeast that provides dine-in, carry-out, and catering services. Owners Jesse and Mataya Peña currently operate six locations and are in the process of opening a new restaurant in another state. Their operation is quite successful and appeals to health-conscious consumers, busy moms, and executives in a hurry. Staying open longer hours, enlarging the menu, and expanding the scope of the business are among the many goals set by the Peñas. They want to follow a traditional business model in reaching their goals. -Because the Peñas are following a traditional business model, they will engage which of the following functional areas

Because the cost of starting a business in an oligopoly is usually _____, the number of firms entering it is _____.

Fiscal policy relies on the government's powers of _____.

In a _____ economy, the government controls selected major industries, such as transportation and health care, while allowing individual ownership of other industries.

As factors of production, equipment, buildings, vehicles, and cash are considered _____.