Question 1

Which of the following is best supported by the statements above?

Accepted Answer

A)  The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible. 
B)  It is generally better to confront one established competitor at a time rather than many at once. 
C)  Even when competing in a niche, a company should act in every respect as if it is targeting every market segment. 
D)  The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence. 
E)  A company's initial goals do not place limits on its long-term success. 
A)  The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible. 
B)  It is generally better to confront one established competitor at a time rather than many at once. 
C)  Even when competing in a niche, a company should act in every respect as if it is targeting every market segment. 
D)  The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence. 
E)  A company's initial goals do not place limits on its long-term success.

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

What is the main measure of growth in the business cycle?

Accepted Answer

The main measure of growth in the busine

Question 4

What does productivity measure?

Accepted Answer

A)  the total value of all goods and services produced by a national economy 
B)  how much a system produces with the resources needed to produce it 
C)  how much output is necessary to produce a certain level of demand 
D)  the standard of living relative to purchasing power parity 
E)  how much gross national product results from inputs of labor 
A)  the total value of all goods and services produced by a national economy 
B)  how much a system produces with the resources needed to produce it 
C)  how much output is necessary to produce a certain level of demand 
D)  the standard of living relative to purchasing power parity 
E)  how much gross national product results from inputs of labor

Question 5

The government can influence the availability of capital by working through the Federal Reserve System.

Accepted Answer

A) True 
 B)False

Question 6

Explain the roles of demand and supply in a market economy.

Accepted Answer

On all economic levels of a market econo

Question 7

What is a business?

Accepted Answer

A business is an organization that provi

Question 8

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 9

What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?

Accepted Answer

A)  the going rate 
B)  the margin rate 
C)  the market price 
D)  the optimum price 
E)  the cost price 
A)  the going rate 
B)  the margin rate 
C)  the market price 
D)  the optimum price 
E)  the cost price

Question 10

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 11

Differentiate between gross national product (GNP) and gross domestic product (GDP).

Accepted Answer

Both gross national product (GNP) and gr

Question 12

Which of the following points out a flaw in Jonathan's reasoning?

Accepted Answer

A)  Information about the company's expenses is necessary to tell whether it is profitable. 
B)  AB Distributor may have lost money the previous year. 
C)  Most of AB Distributor's employees are relatively new. 
D)  Not all of the revenue may contribute toward profits. 
E)  Many of AB Distributor's competitors may not be doing as well. 
A)  Information about the company's expenses is necessary to tell whether it is profitable. 
B)  AB Distributor may have lost money the previous year. 
C)  Most of AB Distributor's employees are relatively new. 
D)  Not all of the revenue may contribute toward profits. 
E)  Many of AB Distributor's competitors may not be doing as well.

Question 13

In the United States, milk is produced on thousands of farms, with no producer dominating the market. Producers sell milk at the going price and are unable to influence this price. Millions of gallons of milk are purchased every day. What type of competition is the market for milk?

Accepted Answer

A)  a monopoly 
B)  an oligopoly 
C)  perfect competition 
D)  monopolistic competition 
E)  a cooperative 
A)  a monopoly 
B)  an oligopoly 
C)  perfect competition 
D)  monopolistic competition 
E)  a cooperative

Question 14

There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?

Accepted Answer

The trend toward mixing business and ent

Question 15

A new feature on the the latest Acme smart phone has made it wildly popular. Which action should Acme take to maximize profits?

Accepted Answer

A)  Increase the supply of the smart phone. 
B)  Decrease the supply of the smart phone. 
C)  Reduce the price of the smart phone. 
D)  Maintain the current supply until demand falls. 
E)  Create a shortage of the smart phone. 
A)  Increase the supply of the smart phone. 
B)  Decrease the supply of the smart phone. 
C)  Reduce the price of the smart phone. 
D)  Maintain the current supply until demand falls. 
E)  Create a shortage of the smart phone.

Question 16

The primary measure of growth in the business cycle is inflation.

Accepted Answer

A) True 
 B)False

Question 17

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 18

How would supply affect the aggregate output of an economy?

Accepted Answer

A)  Supply would decrease aggregate output. 
B)  Increases in both would cause inflation. 
C)  Aggregate output would grow with supply. 
D)  Supply would have no direct effect on aggregate output. 
E)  Aggregate output would increase the money supply. 
A)  Supply would decrease aggregate output. 
B)  Increases in both would cause inflation. 
C)  Aggregate output would grow with supply. 
D)  Supply would have no direct effect on aggregate output. 
E)  Aggregate output would increase the money supply.

Question 19

A chief goal of an economic system is stability. What is meant by stability in an economic system?

Accepted Answer

Stability is a condition in which the am

Question 20

A new watch manufacturer would like to determine the market price of a new line of watches. How could the manufacturer most effectively determine the market price?

Accepted Answer

A)  Place several of the new watches on sale at a watch store and see which sells most quickly. 
B)  Arrange to sell the watches in a number of diverse auctions. 
C)  Set the price of one watch higher than another and see which sells the most quickly. 
D)  Survey potential customers and retailers on what they think the price should be. 
E)  Canvass executives from competing companies about what they think the price should be. 
A)  Place several of the new watches on sale at a watch store and see which sells most quickly. 
B)  Arrange to sell the watches in a number of diverse auctions. 
C)  Set the price of one watch higher than another and see which sells the most quickly. 
D)  Survey potential customers and retailers on what they think the price should be. 
E)  Canvass executives from competing companies about what they think the price should be.

Which of the following is best supported by the statements above?

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

What is the main measure of growth in the business cycle?

What does productivity measure?

The government can influence the availability of capital by working through the Federal Reserve System.

Explain the roles of demand and supply in a market economy.

What is a business?

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

What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?

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

Differentiate between gross national product (GNP) and gross domestic product (GDP).

Which of the following points out a flaw in Jonathan's reasoning?

In the United States, milk is produced on thousands of farms, with no producer dominating the market. Producers sell milk at the going price and are unable to influence this price. Millions of gallons of milk are purchased every day. What type of competition is the market for milk?

There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?

A new feature on the the latest Acme smart phone has made it wildly popular. Which action should Acme take to maximize profits?

The primary measure of growth in the business cycle is inflation.

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

How would supply affect the aggregate output of an economy?

A chief goal of an economic system is stability. What is meant by stability in an economic system?

A new watch manufacturer would like to determine the market price of a new line of watches. How could the manufacturer most effectively determine the market price?

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 1: The Us Business Environment

Which of the following is best supported by the statements above?

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

What is the main measure of growth in the business cycle?

What does productivity measure?

The government can influence the availability of capital by working through the Federal Reserve System.

Explain the roles of demand and supply in a market economy.

What is a business?

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

What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?

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

Differentiate between gross national product (GNP) and gross domestic product (GDP).

Which of the following points out a flaw in Jonathan's reasoning?

In the United States, milk is produced on thousands of farms, with no producer dominating the market. Producers sell milk at the going price and are unable to influence this price. Millions of gallons of milk are purchased every day. What type of competition is the market for milk?

There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?

A new feature on the the latest Acme smart phone has made it wildly popular. Which action should Acme take to maximize profits?

The primary measure of growth in the business cycle is inflation.

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

How would supply affect the aggregate output of an economy?

A chief goal of an economic system is stability. What is meant by stability in an economic system?

A new watch manufacturer would like to determine the market price of a new line of watches. How could the manufacturer most effectively determine the market price?

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters