Question 1

Which of the following is the MOST likely pricing approach for a monopoly?

Accepted Answer

A)  Charge customers whatever you please. 
B)  Give customers a real bargain on price. 
C)  Charge a price that will not cause consumer demand to drop. 
D)  Undercut the prices of the competition. 
E)  Give customers a fair price that cannot be matched by competitors. 
A)  Charge customers whatever you please. 
B)  Give customers a real bargain on price. 
C)  Charge a price that will not cause consumer demand to drop. 
D)  Undercut the prices of the competition. 
E)  Give customers a fair price that cannot be matched by competitors.

Question 2

Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas?

Accepted Answer

A)  GDP per capita 
B)  standard of living 
C)  consumer price index 
D)  purchasing power parity 
E)  Big Mac index 
A)  GDP per capita 
B)  standard of living 
C)  consumer price index 
D)  purchasing power parity 
E)  Big Mac index

Question 3

Which of the following,if true,would strengthen the argument in favor of a price increase?

Accepted Answer

A)  Substitutes for Widgets are available in the market. 
B)  The price of materials consumed along with Widgets has gone up. 
C)  A change in the environment is likely to stimulate overall demand for Widgets. 
D)  Competitors have announced that they intend to keep prices at current levels. 
E)  Relaxation of import restrictions would lead to foreign competitors flooding the market. 
A)  Substitutes for Widgets are available in the market. 
B)  The price of materials consumed along with Widgets has gone up. 
C)  A change in the environment is likely to stimulate overall demand for Widgets. 
D)  Competitors have announced that they intend to keep prices at current levels. 
E)  Relaxation of import restrictions would lead to foreign competitors flooding the market.

Question 4

Which of the following,if true,would strengthen the argument for competing in the Chinese market?

Accepted Answer

A)  Changes in exchange rates can affect the value of sales made in different countries. 
B)  Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries. 
C)  The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients. 
D)  The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets. 
E)  Chinese companies tend not to pursue the franchise option when attempting to expand into other countries. 
A)  Changes in exchange rates can affect the value of sales made in different countries. 
B)  Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries. 
C)  The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients. 
D)  The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets. 
E)  Chinese companies tend not to pursue the franchise option when attempting to expand into other countries.

Question 5

Which of the following,if true,would MOST weaken Jonathan's contention?

Accepted Answer

A)  AB Distributor's clients are happy with the company's services. 
B)  Shipping costs for the industry have significantly increased over the last year. 
C)  AB Distributor's employees are dissatisfied with the company's working conditions. 
D)  The shipping intermediary industry has experienced a slowdown overall. 
E)  Many of AB Distributor's employees are new to the business. 
A)  AB Distributor's clients are happy with the company's services. 
B)  Shipping costs for the industry have significantly increased over the last year. 
C)  AB Distributor's employees are dissatisfied with the company's working conditions. 
D)  The shipping intermediary industry has experienced a slowdown overall. 
E)  Many of AB Distributor's employees are new to the business.

Question 6

Economic systems differ in how factors of production are used.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is characterized by having few sellers,similar prices among sellers,and difficult market entry?

Accepted Answer

A)  oligopoly 
B)  pure competition 
C)  monopoly 
D)  monopolistic competition 
E)  state socialism 
A)  oligopoly 
B)  pure competition 
C)  monopoly 
D)  monopolistic competition 
E)  state socialism

Question 8

If,in the long run,international trade improves the standards of living in participating countries,why might some countries want to place trade barriers,such as extra taxes,on imported products?

Accepted Answer

A)  Imported products compete with domestic products and thus put pressure on local business. 
B)  Imported products are usually not as good quality as domestically made products. 
C)  Generating government revenue is often more economically valuable than free trade. 
D)  This is necessary to keep a country's currency strong. 
E)  International trade tends to lead to political tension. 
A)  Imported products compete with domestic products and thus put pressure on local business. 
B)  Imported products are usually not as good quality as domestically made products. 
C)  Generating government revenue is often more economically valuable than free trade. 
D)  This is necessary to keep a country's currency strong. 
E)  International trade tends to lead to political tension.

Question 9

What is a business?

Accepted Answer

A business is an organization that provi

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

What term do economists use for the pattern of short-term expansions and contractions in the economy?

Accepted Answer

A)  business cycle 
B)  aggregate output 
C)  standard of living 
D)  consumer price index 
E)  purchasing power parity 
A)  business cycle 
B)  aggregate output 
C)  standard of living 
D)  consumer price index 
E)  purchasing power parity

Question 12

What type of policy is made up of fiscal and monetary policy?

Accepted Answer

A)  trade 
B)  employment 
C)  stabilization 
D)  tax 
E)  foreign 
A)  trade 
B)  employment 
C)  stabilization 
D)  tax 
E)  foreign

Question 13

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

Accepted Answer

A)  The increase in supply will have no effect on the equilibrium price. 
B)  The increase in supply will lead to a decrease in demand. 
C)  The increase in supply will lead to a decrease in the equilibrium price. 
D)  The increase in supply will lead to an increase in demand. 
E)  The increase in supply will lead to an increase in equilibrium price. 
A)  The increase in supply will have no effect on the equilibrium price. 
B)  The increase in supply will lead to a decrease in demand. 
C)  The increase in supply will lead to a decrease in the equilibrium price. 
D)  The increase in supply will lead to an increase in demand. 
E)  The increase in supply will lead to an increase in equilibrium price.

Question 14

In a natural monopoly,prices tend to be government regulated.

Accepted Answer

A) True 
 B)False

Question 15

Another manager at AB Distributor,Shawna,suggests that if the company's revenue had not increased,it would not have been able to increase its profits.Which of the following points out a flaw in Shawna's reasoning?

Accepted Answer

A)  Other similar companies have increased their profits, too. 
B)  Revenue is not always relevant to figuring profitability. 
C)  Profitability is not the only objective of the company. 
D)  The company can increase revenue only by cutting costs. 
E)  It is possible to increase profits by lowering costs. 
A)  Other similar companies have increased their profits, too. 
B)  Revenue is not always relevant to figuring profitability. 
C)  Profitability is not the only objective of the company. 
D)  The company can increase revenue only by cutting costs. 
E)  It is possible to increase profits by lowering costs.

Question 16

Which of the following BEST gives the meaning of the term gross national product?

Accepted Answer

A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods and services produced within a given period by a national economy, not including foreign production 
C)  total value of all goods and services produced within a given period by a national economy through domestic factors of production 
D)  total value of all goods and services produced within a given period regardless of where the factors of production are located 
E)  total value of all goods and services that are exported 
A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods and services produced within a given period by a national economy, not including foreign production 
C)  total value of all goods and services produced within a given period by a national economy through domestic factors of production 
D)  total value of all goods and services produced within a given period regardless of where the factors of production are located 
E)  total value of all goods and services that are exported

Question 17

Through various stimulus programs,the U.S.government injected money into the economy during the 2008-2009 recession.What was the concern that this type of action would lead to?

Accepted Answer

A)  increased labor costs 
B)  increased spending 
C)  increased unemployment 
D)  increased inflation 
E)  increased trade imbalance 
A)  increased labor costs 
B)  increased spending 
C)  increased unemployment 
D)  increased inflation 
E)  increased trade imbalance

Question 18

What are profits?

Accepted Answer

A)  total money taken in by a corporation 
B)  increases in income from year to year 
C)  increases in a corporation's stock price 
D)  revenue generated by goods and services. 
E)  difference between revenues and expenses 
A)  total money taken in by a corporation 
B)  increases in income from year to year 
C)  increases in a corporation's stock price 
D)  revenue generated by goods and services. 
E)  difference between revenues and expenses

Question 19

In typical modern oligopolies,the large capital investment necessary to enter the market discourages new competitors.

Accepted Answer

A) True 
 B)False

Question 20

What is cyclical unemployment?

Accepted Answer

Cyclical unemployment is unemployment th

Which of the following is the MOST likely pricing approach for a monopoly?

Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas?

Which of the following,if true,would strengthen the argument in favor of a price increase?

Which of the following,if true,would strengthen the argument for competing in the Chinese market?

Which of the following,if true,would MOST weaken Jonathan's contention?

Economic systems differ in how factors of production are used.

Which of the following is characterized by having few sellers,similar prices among sellers,and difficult market entry?

If,in the long run,international trade improves the standards of living in participating countries,why might some countries want to place trade barriers,such as extra taxes,on imported products?

What is a business?

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

What term do economists use for the pattern of short-term expansions and contractions in the economy?

What type of policy is made up of fiscal and monetary policy?

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

In a natural monopoly,prices tend to be government regulated.

Another manager at AB Distributor,Shawna,suggests that if the company's revenue had not increased,it would not have been able to increase its profits.Which of the following points out a flaw in Shawna's reasoning?

Which of the following BEST gives the meaning of the term gross national product?

Through various stimulus programs,the U.S.government injected money into the economy during the 2008-2009 recession.What was the concern that this type of action would lead to?

What are profits?

In typical modern oligopolies,the large capital investment necessary to enter the market discourages new competitors.

What is cyclical unemployment?

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 for Producing Goods and Services

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

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Exam 1: The U.S.Business Environment

Which of the following is the MOST likely pricing approach for a monopoly?

Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas?

Which of the following,if true,would strengthen the argument in favor of a price increase?

Which of the following,if true,would strengthen the argument for competing in the Chinese market?

Which of the following,if true,would MOST weaken Jonathan's contention?

Economic systems differ in how factors of production are used.

Which of the following is characterized by having few sellers,similar prices among sellers,and difficult market entry?

If,in the long run,international trade improves the standards of living in participating countries,why might some countries want to place trade barriers,such as extra taxes,on imported products?

What is a business?

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

What term do economists use for the pattern of short-term expansions and contractions in the economy?

What type of policy is made up of fiscal and monetary policy?

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

In a natural monopoly,prices tend to be government regulated.

Another manager at AB Distributor,Shawna,suggests that if the company's revenue had not increased,it would not have been able to increase its profits.Which of the following points out a flaw in Shawna's reasoning?

Which of the following BEST gives the meaning of the term gross national product?

Through various stimulus programs,the U.S.government injected money into the economy during the 2008-2009 recession.What was the concern that this type of action would lead to?

What are profits?

In typical modern oligopolies,the large capital investment necessary to enter the market discourages new competitors.

What is cyclical unemployment?

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 for Producing Goods and Services

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