Exam 1: The Foundations of Business

Museums and most colleges and universities are not-for-profit organizations.

Which of the following question(s) does an economist attempt to answer?

Generally speaking, we find products more attractive at higher prices because we believe that other people find value in them.

Explain how demand functions in a free market system.

As a functional area of business, what value does the accounting group provide?

How does government use its powers of spending and taxation to implement fiscal policy?

Swarez Construction Corp.is a nationwide builder of small business buildings.To understand the nature of supply and demand for its products, management would conduct a _____ study.

When they assess the success of plans and decisions and take corrective action when it's needed, managers are _______.

Among free market theorists, the principle of laissez-faire calls for government intervention to equalize the distribution of resources.

Among free market theorists, the principle of laissez-faire means _____.

Because Jenny Craig's bank provides payment services, loan and insurance products, investments, credit cards, and online banking, it is a _____ company.

_____ occurs when the average of the prices for goods and services either does not change or changes very little.

Businesses such as hospitals, insurance companies, financial institutions, and attorneys convert resources into _____ products.

When people have more discretionary money to eat out at restaurants and cafeterias, it's a sign that the _____ is strong.

In an oligopoly, each seller supplies a large portion of all the products sold in the marketplace.

An exception to the New Age demand curve may occur if diabetes patients are willing to pay the price for an effective new drug regardless of the supply that New Age makes available.

The equilibrium price is a point at which buyers' demand for a product and sellers' supply of it are in balance.

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 level of the_______ is of great benefit to Connor.

All of the following are macroeconomic concerns (select one):

When government-owned businesses convert to private ownership, they go through a process called _____.