Deck 1: Introduction to Business

Question 1

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 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.Hailey 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.Which of these statements is true?

A) Hailey feels that e-business is an important avenue to venture into.
B) Home Inspirations is in a depressive economy.
C) Hailey feels that the barter system is working well.
D) The economy has a high standard of living.
E) The company's sales are obviously in equilibrium.

Answer 1

A

Question 2

Shawn Sine decides to start his own business.How likely is Shawn to still be operating a successful business in seven years?

A) It depends on whether it is an e-business or not.
B) It is very likely because most small businesses are successful.
C) It is likely because the chance of failure is nearly equal to the chance for success.
D) It is unlikely because over half of all new small businesses fail.
E) It is very unlikely because almost all new businesses fail within the first three years.

Answer 2

D

Question 3

All of the following are material resources for Toyota Motor Company except

A) paint.
B) steel.
C) factory.
D) tires.
E) money.

Answer 3

E

Question 4

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 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.Hailey 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.

A) purely competitive
B) Demand
C) monopolistic
D) Command
E) Supply

Question 5

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 base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about what his company would produce and how.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
Refer to Satellite Communications.Jonathan's success will contribute to society.This is referred to as the

A) objective.
B) market economy.
C) business cycle.
D) invisible hand.
E) standard of living.

Question 6

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 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.Hailey 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.Hailey noticed that when sales were up, the economy was in a

A) depression.
B) peak period.
C) grace period.
D) recession.
E) stagnant mode.

Question 7

Cultural diversity represents

A) a business theory that is no longer valid.
B) the differences among people in a workforce.
C) a technical skill.
D) a statistical method used to project sales revenues and profits for global companies.
E) a religious issue that doesn't affect business organisations.

Question 8

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 base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about what his company would produce and how.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
Refer to Satellite Communications.Which company has the correct objective?

A) Satellite Communications
B) Universal Communications
C) Both of them
D) None of them
E) Not enough information is provided.

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 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.Hailey 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.Hailey feels that for productivity to improve, the company must practice

A) free enterprise.
B) work ethics.
C) specialisation.
D) cultural diversity.
E) pure competition.

Question 10

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 base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about what his company would produce and how.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
Refer to Satellite Communications.When hiring people, Jonathan thinks it is important to consider

A) unilateral thinking.
B) profit.
C) wage increases.
D) health benefits.
E) cultural diversity.

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 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.Hailey 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.Hailey's goal of offering products with unique features and special services is called

A) specialisation.
B) product differentiation.
C) barter.
D) a factory system.
E) a natural monopoly.

Question 12

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 base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about what his company would produce and how.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
Refer to Satellite Communications.Jonathan is operating in a ____ because he has the opportunity to decide what and how to do things.

A) command economy
B) mixed economy
C) free-enterprise system
D) split economy
E) cultural diversity

Question 13

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 base.He was happy to have this opportunity because it was a dream that he had always had.He had always wanted to make his own decisions about what his company would produce and how.The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success.
Refer to Satellite Communications.Now that Jonathan plans to open his own business, he needs to look at the factors of production.Which of the following is not a factor of production?

A) Labour
B) Capital
C) Land
D) Demand
E) Entrepreneurship

Question 14

Raw materials, buildings, and machinery are ____ resources.

A) Human
B) Financial
C) information
D) Major
E) Material

Question 15

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

A) Planning
B) Organising
C) Leading and motivating
D) Controlling
E) Selling

Question 16

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

A) values.
B) hobbies.
C) skills.
D) education.
E) desire to be rich.

Question 17

Amazon.com has the following rights: to make a profit for its stockholders; to market a wide variety of products; and, to compete with other online retailers.Amazon.com operates in a(n) ____ system.

A) free-enterprise
B) domestic
C) e-business
D) Socialistic
E) Totalitarian

Question 18

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

A) consumerism.
B) the economy.
C) capitalism.
D) business.
E) the workplace.

Question 19

Chris chooses to work only thirty hours a week as an engineering assistant while trying to shield himself from additional responsibilities at work.Chris seems to value

A) recognition and rewards.
B) the opportunity to help others.
C) promotions and transfers.
D) more free time.
E) get-rich-quick schemes.

Question 20

The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deemed an important management trait.

A) interpersonal skills
B) conceptual skills
C) leading and motivating functions
D) mechanical skills
E) controlling functions

Question 21

____ resources are the individuals who provide labour for an organisation in exchange for wages.

A) Human
B) Material
C) Labour
D) Financial
E) Informational

Question 22

The relationship between sales and profits can be written as

A) sales revenues + expenses = profit.
B) loss + profit = sales revenue.
C) profit -expenses = sales revenue.
D) expenses + loss = sales revenue + profit.
E) sales revenue - expenses = profit.

Question 23

Best Buy stores would most likely be classified as

A) service businesses.
B) sole proprietorships.
C) a marketing intermediary.
D) manufacturing establishments.
E) perfect competition.

Question 24

What resource tells the managers of a business how effectively the other three resources are being combined and used?

A) Technical
B) Human
C) Financial
D) Material
E) Informational

Question 25

Mondell Weller decides to start a residential landscaping business.How would this business most likely be classified?

A) Manufacturing business
B) Marketing intermediary
C) Service business
D) Corporation
E) Nonprofit organization

Question 26

The ultimate objective of every firm, such as Intel, Chevrolet, and Sony must be to

A) sell either to other firms or to consumers.
B) satisfy the needs of its customers.
C) pay out money to cover the various expenses of doing business.
D) know that people generally buy a product and store it.
E) make it impossible to satisfy customers.

Question 27

The monetary contributions that the owners of Intel pay for shares of the company's stock are ____ resources for Intel.

A) Material
B) Financial
C) informational
D) Human
E) manufacturing

Question 28

Microeconomics is the study of

A) global economies.
B) the entire nation's economy.
C) the decisions made by individuals.
D) the national unemployment rate.
E) productivity in other countries.

Question 29

____ is the study of how wealth is created and distributed.

A) Economics
B) Business
C) Marketing
D) Capitalism
E) Finance

Question 30

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

A) profit.
B) loss.
C) negative cash flow.
D) recession.
E) depression.

Question 31

A local retailer calls its customers when it receives merchandise that they may be interested in, provides individual service to each customer, provides forms and phone numbers for complaints and comments, and has a 100 percent satisfaction guarantee.Which objective is this business working hard to accomplish?

A) Making a profit
B) Achieving low employee turnover
C) Satisfying the needs of its customers
D) Increasing the owner's wealth
E) Keeping up with the current technology

Question 32

A business' efforts to sustain the planet and the business' participation in ecological movements are part of a firm's

A) free enterprise system.
B) stakeholder responsibilities.
C) factors of production.
D) social responsibility.
E) business cycle.

Question 33

Which of the following companies is an example of a manufacturer?

A) Best Buy
B) Sony
C) Walmart
D) Zynga
E) Amazon.com

Question 34

In the mid-1970s, auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation.This happened because manufacturers

A) lost sight of consumers' needs.
B) attempted to satisfy consumers' needs.
C) followed consumers' wants too closely.
D) knew the economy would rise again.
E) did not expect a profit.

Question 35

For a business, stakeholders represent

A) investors in the business.
B) lenders that have provided loans.
C) suppliers that have extended credit to the firm in search of profit for the firm..
D) employees who work for the firm.
E) all of the different people or groups who are affected by the business.

Question 36

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

A) profit.
B) loss.
C) positive cash flow.
D) financial resource.
E) factor of production.

Question 37

Organisations that combine raw materials, machinery, and labour to produce goods are called

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

Question 38

Andrew Cooper decides to become a part owner of a corporation.As a part owner, he expects to receive a profit as payment because he has assumed the risk of

A) serious inflation eroding the purchasing power of his investment.
B) being paid before the suppliers and employees are paid.
C) losing his home, car, and life savings.
D) losing the money he has invested in the corporation and not receiving profits.
E) the company giving all of the profits to local communities.

Question 39

At the end of the year, an individual, small business owner has made €65,000 in profit.Who does that profit belong to?

A) The company's CEO and top managers
B) The banks from which the business borrowed money
C) All employees of the small business
D) The consumers of the business' products
E) The owner of the business

Question 40

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

A) Human
B) Financial
C) Information
D) Major
E) Material

Question 41

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

A) product
B) producer's
C) market
D) planned
E) command

Question 42

Capital or capital goods as recognised by economists would include all of the following except

A) crude oil.
B) facilities.
C) money.
D) machinery.
E) computer equipment.

Question 43

The work performed to produce goods and services is referred to as

A) land.
B) financial resources.
C) material resources.
D) capital goods.
E) labour.

Question 44

Olan Okowo recently moved to the city with many hopes and dreams.However, he realises that economic freedom includes all of the following except the right to

A) guaranteed economic success.
B) use owned resources to produce a profit.
C) accept or reject any job offered.
D) sell a product at the price chosen.
E) buy any economic good or service producers sell.

Question 45

All of the following would typically be considered consumer products except a

A) 2-litee of Coke.
B) DVD player.
C) prom dress.
D) high-powered drill press.
E) bag of dog food.

Question 46

Approximately what portion of our nation's total production is made up of consumer goods?

A) 70 percent
B) 50 percent
C) 40 percent
D) 20 percent
E) 10 percent

Question 47

A natural resource, as recognised by economists, would include which of the following?

A) Crude oil
B) Buildings
C) Tools
D) Machinery
E) Equipment

Question 48

Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views of the Rocky Mountains.He obtains a loan and purchases the necessary land, facilities, advertising, and five helicopters for his business.What important factor of production has he overlooked in creating his business?

A) Equipment
B) Capital
C) Labour
D) Entrepreneurship
E) Natural resources

Question 49

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

A) Individuals are selected to fill certain positions within the economy of their nation according to the needs of the nation as a whole.
B) Markets are carefully regulated to ensure that all individuals within a nation are treated fairly and charged standardised prices.
C) A country only has a limited amount of space for college students and uses a type of lottery system to determine who gets these spaces.
D) Government scarcely exists in this country, and transactions are based on a system of barter, or trading goods, for other goods.
E) Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.

Question 50

A person who risks his or her time, effort, and money to start and operate a business is called a(n)

A) free-market specialist.
B) entrepreneur.
C) intrapreneur.
D) competitor.
E) profit taker.

Question 51

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

A) Macroeconomics
B) Microeconomics
C) Fiscal
D) Monetary
E) Intuitive

Question 52

The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a ____ economy.

A) Planned
B) Utilitarian
C) nationalised
D) Mixed
E) centralised

Question 53

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

A) Competition
B) Guaranteed income
C) Private ownership of wealth
D) Economic freedom
E) Limited role of government

Question 54

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

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

Question 55

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

A) capitalist.
B) labourer.
C) corporate owner.
D) entrepreneur.
E) competitor.

Question 56

According to economists, natural resources, labour, capital, and entrepreneurship are called

A) free resources.
B) competitive resources.
C) factory resources.
D) factors of manufacturing.
E) factors of production.

Question 57

For a Pepperidge Farm production facility, managers and employees would be

A) natural resources.
B) capital.
C) information resources.
D) labour.
E) the entrepreneurial resource.

Question 58

In Adam Smith's view, which of the following is not the role of government in business?

A) Providing defense against foreign governments
B) Regulating business activity
C) Ensuring internal order
D) Furnishing public works
E) Providing education

Question 59

The study of an individual's economic decisions would be an example of

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

Question 60

Which of the following represents the biggest customer of a nation's business?

A) Government
B) Other businesses
C) Foreign governments
D) Consumers
E) The military

Question 61

Examples of command economies include

A) socialism and free enterprise.
B) capitalism and socialism.
C) socialism and market economy.
D) communism and capitalism.
E) socialism and communism.

Question 62

Productivity can best be described as

A) a country's total output.
B) the efficiency of a company's operations.
C) economic growth in a country.
D) the average level of output per worker per hour.
E) the average level of output per worker per year.

Question 63

When consumers spend their money to purchase Apple iPads or computers with an Intel processor, or when they discontinue buying such items as compact discs, they are telling resource owners

A) how to produce.
B) for whom to produce.
C) what to produce.
D) when to produce.
E) to avoid faddish products.

Question 64

Ways in which consumers affect a nation's business include all the following except

A) purchasing goods and services.
B) providing necessary business capital.
C) providing the labour necessary for production.
D) providing the resources necessary for production.
E) taxing goods and services.

Question 65

Which of the following is uncharacteristic of a socialist economy?

A) All capital and capital goods are privately owned.
B) The government owns and controls key industries.
C) Land and raw materials may be the property of the state.
D) What to produce and how to produce it are based on national goals.
E) Distribution of goods and services is controlled by the state.

Question 66

All of the following are characteristics of communist countries such as Cuba except

A) intensive production of goods the government needs.
B) all workers contribute to society according to their ability.
C) frequent shortages of consumer goods.
D) government ownership of almost all economic resources.
E) an adequate supply of consumer goods.

Question 67

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

A) demand
B) command
C) market
D) free-enterprise
E) capitalist

Question 68

In a socialist economy, key industries owned by the government include all except

A) utilities.
B) communications.
C) food production.
D) banking.
E) transportation.

Question 69

Tim Garner owns and operates his own small automobile repair shop.However, the prices he can charge are fixed, and he rents his land and building from the government.Most of his friends work for industries owned by the government.Tim's country is most likely a(n) ____ economy.

A) market
B) communist
C) socialist
D) industrialised
E) Capitalist

Question 70

For the government to provide services, it collects revenue from

A) only individuals in the form of taxes.
B) only corporations in the form of taxes.
C) selling bonds to foreign governments.
D) both households and businesses in various forms of taxes.
E) selling manufactured goods overseas.

Question 71

An example of a command economy is

A) capitalism.
B) laissez-faire.
C) oligopoly.
D) communism.
E) mixed economy.

Question 72

The government uses tax money to

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.

Question 73

France, a socialist economy, does not have which of the following goals?

A) Equitable distribution of income
B) Elimination of poverty
C) Reduction of government regulations
D) Elimination of economic waste
E) Distribution of social services to all who need them

Question 74

In a communist country such as Cuba, emphasis is placed on producing what type of goods?

A) Goods needed by the government
B) Consumer goods
C) Goods for export
D) Perishable goods such as food
E) Durable goods such as machinery

Question 75

Which economist has been called the father of communism?

A) Adam Smith
B) Fidel Castro
C) Mark Cuban
D) Karl Marx
E) Alan Greenspan

Question 76

Households provide all of the following resources to businesses except

A) labour.
B) land.
C) dividends.
D) buildings.
E) capital.

Question 77

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

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

Question 78

The nationalisation of key industries in countries such as Sweden and India is indicative of a(n) ____ economy.

A) Socialist
B) Communist
C) Capitalist
D) nationalist
E) industrialised

Question 79

A system where the basic economic questions are determined, at least to some degree, through centralised government planning is referred to as a ____ economy.

A) Command
B) Capitalistic
C) Mixed
D) laissez-faire
E) communal

Question 80

Gail Nelson 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 Gail correct?

A) Yes, by putting this money into a savings account, only she has access to the funds and they are no longer available to the circular flow.
B) No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
C) Yes, only direct investments into companies, such as purchasing ownership shares of that company, will put her savings back into the circular flow.
D) Yes, the circular flow focuses on businesses and government, and therefore Gail's savings have no impact on the circular flow.
E) No, because she earned this money from a company and because she paid taxes on it, it is always considered part of the flow.