Question 1

As the price of jeans rises, Levi Strauss is likely to

Accepted Answer

A) decrease production and thus decrease the supply. 
B) increase production and thus increase the supply. 
C) do nothing to influence the available supply of jeans. 
D) discontinue producing jeans in favor of a different product. 
E) increase production to influence the demand for jeans. 
A) decrease production and thus decrease the supply. 
B) increase production and thus increase the supply. 
C) do nothing to influence the available supply of jeans. 
D) discontinue producing jeans in favor of a different product. 
E) increase production to influence the demand for jeans. B

Question 2

Steve Wilson, a chef at a major restaurant in San Francisco, wants to start his own restaurant. He surveys the market, finds a suitable location, and calculates how much money he will need to lease the building and purchase the necessary equipment and supplies. Steve visits his banker and requests a loan. The money Steve will receive from the loan and the resources he will purchase with it are known as

Accepted Answer

A) capital. 
B) profit. 
C) revenue. 
D) collateral. 
E) stock. 
A) capital. 
B) profit. 
C) revenue. 
D) collateral. 
E) stock. A

Question 3

Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer bas
-The government uses tax dollars to

Accepted Answer

A) invest in foreign bonds. 
B) invest in foreign corporations. 
C) purchase resources and products needed to provide services. 
D) purchase other nations. 
E) increase consumer income. 
A) invest in foreign bonds. 
B) invest in foreign corporations. 
C) purchase resources and products needed to provide services. 
D) purchase other nations. 
E) increase consumer income. C

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

Accepted Answer

A) Germany 
B) Sweden 
C) Norway 
D) North Korea 
E) Britain 
A) Germany 
B) Sweden 
C) Norway 
D) North Korea 
E) Britain

Question 6

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

Accepted Answer

A) True 
 B)False

Question 7

Home Inspirations
Hailey 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, Hailey plans on taking over the business. Hailey 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. Hailey 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 revenu
-The study of an individual's economic decisions would be an example of

Accepted Answer

A) macroeconomics. 
B) microeconomics. 
C) fiscal policy. 
D) monetary policy. 
E) national economic policy. 
A) macroeconomics. 
B) microeconomics. 
C) fiscal policy. 
D) monetary policy. 
E) national economic policy.

Question 8

The economic term used to describe the Federal Reserve's actions to determine the size of the supply of money in the nation and the level of interest rates is

Accepted Answer

A) monetary policy. 
B) fiscal policy. 
C) debt policy. 
D) recovery technique. 
E) recovery guideline. 
A) monetary policy. 
B) fiscal policy. 
C) debt policy. 
D) recovery technique. 
E) recovery guideline.

Question 9

Home Inspirations
Hailey 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, Hailey plans on taking over the business. Hailey 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. Hailey 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 revenu
-Increased competition from firms in other nations is an example of the

Accepted Answer

A) technological environment. 
B) global environment. 
C) command environment. 
D) laissez-faire environment. 
E) mixed environment. 
A) technological environment. 
B) global environment. 
C) command environment. 
D) laissez-faire environment. 
E) mixed environment.

Question 10

Home Inspirations
Hailey 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, Hailey plans on taking over the business. Hailey 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 goo
-The Federal Reserve uses ____ when it lowers the interest rate charged to banks on short-term loans.

Accepted Answer

A) monetary policy 
B) national debt 
C) inflation 
D) fiscal policy 
E) competition 
A) monetary policy 
B) national debt 
C) inflation 
D) fiscal policy 
E) competition

Question 11

Home Inspirations
Hailey 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, Hailey plans on taking over the business. Hailey 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. Hailey 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 revenu
-Which of the following industries would most likely have the characteristics of an oligopoly?

Accepted Answer

A) Clothing 
B) Restaurants 
C) Automobiles 
D) Cameras 
E) Make-up 
A) Clothing 
B) Restaurants 
C) Automobiles 
D) Cameras 
E) Make-up

Question 12

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 13

Organizations that combine raw materials, machinery, and labor to produce goods are called

Accepted Answer

A) manufacturing businesses. 
B) service businesses. 
C) merchandisers. 
D) market intermediaries. 
E) processors. 
A) manufacturing businesses. 
B) service businesses. 
C) merchandisers. 
D) market intermediaries. 
E) processors.

Question 14

Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer bas
-What must a monopoly, such as a public utility, account for when setting its prices?

Accepted Answer

A) A monopoly, because it has no competitors, can set prices as high as it likes. 
B) A monopoly must consider customer demand, and then set prices at the most profitable level. 
C) A monopoly must take into account what its top competitors are charging for the same product or service. 
D) A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries. 
E) A monopoly must look at the importance of each client, and then determine what respective rate each will be charged. 
A) A monopoly, because it has no competitors, can set prices as high as it likes. 
B) A monopoly must consider customer demand, and then set prices at the most profitable level. 
C) A monopoly must take into account what its top competitors are charging for the same product or service. 
D) A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries. 
E) A monopoly must look at the importance of each client, and then determine what respective rate each will be charged.

Question 15

A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations are generally referred to as the business cycle. Describe the four different phases of the business cycle.

Accepted Answer

The business cycle generally includes fo

Question 16

Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer bas
-If all leading corporations in the soft-drink industry merged, this would

Accepted Answer

A) encourage pure competition. 
B) encourage monopolistic competition. 
C) lead to an oligopoly. 
D) create a limited monopoly. 
E) create a monopoly. 
A) encourage pure competition. 
B) encourage monopolistic competition. 
C) lead to an oligopoly. 
D) create a limited monopoly. 
E) create a monopoly.

Question 17

The term stakeholders refers only to the people who have invested money in a business.

Accepted Answer

A) True 
 B)False

Question 18

The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are willing to purchase.

Accepted Answer

A) True 
 B)False

Question 19

Home Inspirations
Hailey 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, Hailey plans on taking over the business. Hailey 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. Hailey 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 revenu
-​In 1770, Thomas Pine I was a tobacco merchant in Virginia. In 2014, Thomas Pine VI, the descendant of Thomas Pine I, was a tobacco merchant in Virginia. In terms of the global competitive environment, which of the following is not a difference between the competitions faced by Thomas Pine I and Thomas Pine VI?

Accepted Answer

A) ​The 1770 merchant has very few choices in regard to the nation to which he exported his tobacco. 
B) ​The 1770 merchant most likely exported only the surplus of his product that he could not sell in America. 
C) ​In 1770 there was no factory system to make tobacco production and processing more efficient and financially rewarding. 
D) ​There were few tobacco merchants in America in 1770, but in 2014 tobacco was farmed in all of the 50 states. 
A) ​The 1770 merchant has very few choices in regard to the nation to which he exported his tobacco. 
B) ​The 1770 merchant most likely exported only the surplus of his product that he could not sell in America. 
C) ​In 1770 there was no factory system to make tobacco production and processing more efficient and financially rewarding. 
D) ​There were few tobacco merchants in America in 1770, but in 2014 tobacco was farmed in all of the 50 states.

Question 20

Which of the following is not one of the four states included in a typical business cycle?

Accepted Answer

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

As the price of jeans rises, Levi Strauss is likely to

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.

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

The economic term used to describe the Federal Reserve's actions to determine the size of the supply of money in the nation and the level of interest rates is

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

Organizations that combine raw materials, machinery, and labor to produce goods are called

A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations are generally referred to as the business cycle. Describe the four different phases of the business cycle.

The term stakeholders refers only to the people who have invested money in a business.

The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are willing to purchase.

Which of the following is not one of the four states included in a typical business cycle?

Being Ethical and Socially Responsible

Exploring 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 and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters

Exam 1: Exploring the World of Business and Economics

As the price of jeans rises, Levi Strauss is likely to

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.

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

The economic term used to describe the Federal Reserve's actions to determine the size of the supply of money in the nation and the level of interest rates is

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

Organizations that combine raw materials, machinery, and labor to produce goods are called

A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations are generally referred to as the business cycle. Describe the four different phases of the business cycle.

The term stakeholders refers only to the people who have invested money in a business.

The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are willing to purchase.

Which of the following is not one of the four states included in a typical business cycle?

Being Ethical and Socially Responsible

Exploring 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 and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters