Question 1

Inflation results in increased purchasing power for the consumer.

Accepted Answer

A) True 
 B)False

Question 2

In an oligopoly, when one firm reduces its prices, how do other sellers react?

Accepted Answer

A)  There is no reaction from other firms to change their prices. 
B)  Other firms reduce their prices also, usually quite quickly. 
C)  Other firms may reduce their prices, but usually gradually. 
D)  Other firms are not usually aware that price has changed. 
E)  There is a combined response from other firms to stabilize prices. 
A)  There is no reaction from other firms to change their prices. 
B)  Other firms reduce their prices also, usually quite quickly. 
C)  Other firms may reduce their prices, but usually gradually. 
D)  Other firms are not usually aware that price has changed. 
E)  There is a combined response from other firms to stabilize prices.

Question 3

Aggregate output refers to a company's annual production of goods or services.

Accepted Answer

A) True 
 B)False

Question 4

What is the willingness and ability of producers to offer a good for sale referred to as?

Accepted Answer

A)  Private enterprise 
B)  Supply 
C)  Free market economy 
D)  Law of supply 
E)  Degrees of competition 
A)  Private enterprise 
B)  Supply 
C)  Free market economy 
D)  Law of supply 
E)  Degrees of competition

Question 5

Which indicator refers to the total quantity of goods and services produced by an economic system during a given period?

Accepted Answer

A)  The business cycle 
B)  Aggregate output 
C)  Gross domestic product 
D)  The consumer price index 
E)  Gross national product 
A)  The business cycle 
B)  Aggregate output 
C)  Gross domestic product 
D)  The consumer price index 
E)  Gross national product

Question 6

Stabilization policy is made up of both monetary and fiscal policy.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?

Accepted Answer

A)  Low unemployment 
B)  Stagnant wages 
C)  Declining living standards 
D)  Cyclical inflation 
E)  Limited credit 
A)  Low unemployment 
B)  Stagnant wages 
C)  Declining living standards 
D)  Cyclical inflation 
E)  Limited credit

Question 8

What is the basis for a market economy?

Accepted Answer

A)  The ability to pursue an interest with minimal government restriction. 
B)  The ability to limit profits on competitors based on government restriction. 
C)  The ability to offer a good or service at a variety of price points. 
D)  A limitation on the number of competitors the government will allow within a specific geographic region. 
E)  A large number of smaller firms in an industry will limit influence. 
A)  The ability to pursue an interest with minimal government restriction. 
B)  The ability to limit profits on competitors based on government restriction. 
C)  The ability to offer a good or service at a variety of price points. 
D)  A limitation on the number of competitors the government will allow within a specific geographic region. 
E)  A large number of smaller firms in an industry will limit influence.

Question 9

How does unemployment affect economic stability?

Accepted Answer

Unemployment is the level of joblessness

Question 10

Which environment is NOT an important dimension of a business organization's external environment?

Accepted Answer

A)  The political-legal environment 
B)  The sociocultural environment 
C)  The technological environment 
D)  The corporate cultural environment 
E)  The global business environment 
A)  The political-legal environment 
B)  The sociocultural environment 
C)  The technological environment 
D)  The corporate cultural environment 
E)  The global business environment

Question 11

Identify the four factors of production and their role in economic systems.

Accepted Answer

An economic system is a nation's system

Question 12

How do consumer choice and demand affect a capitalistic system?

Accepted Answer

In a capitalistic system, such as that i

Question 13

Discuss the fiscal and monetary goals of a stabilization policy.

Accepted Answer

Fiscal policy and monetary policy make u

Question 14

What is the process for converting government enterprises into individually owned firms known as?

Accepted Answer

A)  Production allocation 
B)  Privatization 
C)  Entrepreneurship 
D)  Demand assessment 
E)  Profit maximization 
A)  Production allocation 
B)  Privatization 
C)  Entrepreneurship 
D)  Demand assessment 
E)  Profit maximization

Question 15

Which of the following is an indication of national economic growth, shown by measuring aggregate output?

Accepted Answer

A)  Gross domestic product 
B)  Standard of living 
C)  Economic indicators 
D)  Gross national product 
E)  Real growth rate 
A)  Gross domestic product 
B)  Standard of living 
C)  Economic indicators 
D)  Gross national product 
E)  Real growth rate

Question 16

The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment.

Accepted Answer

A) True 
 B)False

Question 17

Explain the concept of mixed market economies and how they support pure planned and pure market economies.

Accepted Answer

In reality, there are really no "pure" p

Question 18

When making decisions about production and allocation, which type of system depends on individual producers and consumers to create a combination of supply and demand?

Accepted Answer

A)  Planned economy 
B)  Communism 
C)  Private economy 
D)  Market economy 
E)  Socialism 
A)  Planned economy 
B)  Communism 
C)  Private economy 
D)  Market economy 
E)  Socialism

Question 19

In which type of economy do the individual producer and consumer control production through supply and demand?

Accepted Answer

A)  Planned 
B)  Communist 
C)  Market 
D)  Socialist 
E)  Mixed 
A)  Planned 
B)  Communist 
C)  Market 
D)  Socialist 
E)  Mixed

Question 20

What is the economic condition characterized by widespread increased prices without increased purchasing power?

Accepted Answer

A)  Unemployment 
B)  Inflation 
C)  Expansion 
D)  Deflation 
E)  Recession 
A)  Unemployment 
B)  Inflation 
C)  Expansion 
D)  Deflation 
E)  Recession

Inflation results in increased purchasing power for the consumer.

In an oligopoly, when one firm reduces its prices, how do other sellers react?

Aggregate output refers to a company's annual production of goods or services.

What is the willingness and ability of producers to offer a good for sale referred to as?

Which indicator refers to the total quantity of goods and services produced by an economic system during a given period?

Stabilization policy is made up of both monetary and fiscal policy.

Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?

What is the basis for a market economy?

How does unemployment affect economic stability?

Which environment is NOT an important dimension of a business organization's external environment?

Identify the four factors of production and their role in economic systems.

How do consumer choice and demand affect a capitalistic system?

Discuss the fiscal and monetary goals of a stabilization policy.

What is the process for converting government enterprises into individually owned firms known as?

Which of the following is an indication of national economic growth, shown by measuring aggregate output?

The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment.

Explain the concept of mixed market economies and how they support pure planned and pure market economies.

When making decisions about production and allocation, which type of system depends on individual producers and consumers to create a combination of supply and demand?

In which type of economy do the individual producer and consumer control production through supply and demand?

What is the economic condition characterized by widespread increased prices without increased purchasing power?

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 1: The U.S. Business Environment

Inflation results in increased purchasing power for the consumer.

In an oligopoly, when one firm reduces its prices, how do other sellers react?

Aggregate output refers to a company's annual production of goods or services.

What is the willingness and ability of producers to offer a good for sale referred to as?

Which indicator refers to the total quantity of goods and services produced by an economic system during a given period?

Stabilization policy is made up of both monetary and fiscal policy.

Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?

What is the basis for a market economy?

How does unemployment affect economic stability?

Which environment is NOT an important dimension of a business organization's external environment?

Identify the four factors of production and their role in economic systems.

How do consumer choice and demand affect a capitalistic system?

Discuss the fiscal and monetary goals of a stabilization policy.

What is the process for converting government enterprises into individually owned firms known as?

Which of the following is an indication of national economic growth, shown by measuring aggregate output?

The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment.

Explain the concept of mixed market economies and how they support pure planned and pure market economies.

When making decisions about production and allocation, which type of system depends on individual producers and consumers to create a combination of supply and demand?

In which type of economy do the individual producer and consumer control production through supply and demand?

What is the economic condition characterized by widespread increased prices without increased purchasing power?

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters