Question 1

What does a planned economy rely on a centralized government to do?

Accepted Answer

A)  support free enterprise in every way possible 
B)  allocate all or most factors of production 
C)  encourage citizens to buy shares of stock in small companies 
D)  keep its control activities to a minimum 
E)  direct workers to start their own small businesses 
A)  support free enterprise in every way possible 
B)  allocate all or most factors of production 
C)  encourage citizens to buy shares of stock in small companies 
D)  keep its control activities to a minimum 
E)  direct workers to start their own small businesses

Question 2

What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?

Accepted Answer

A)  unemployment 
B)  stability 
C)  deflation 
D)  inflation 
E)  oversupply 
A)  unemployment 
B)  stability 
C)  deflation 
D)  inflation 
E)  oversupply

Question 3

The United States government manages the collection and spending of its revenues through monetary policy.

Accepted Answer

A) True 
 B)False

Question 4

What marks the key difference between economic systems?

Accepted Answer

A)  the way they manage the factors of production 
B)  the way they transport goods within their borders 
C)  the way rules and regulations are legislated 
D)  the way workers are relocated to different regions 
E)  the way basic necessities are determined 
A)  the way they manage the factors of production 
B)  the way they transport goods within their borders 
C)  the way rules and regulations are legislated 
D)  the way workers are relocated to different regions 
E)  the way basic necessities are determined

Question 5

What is measured by the consumer price index (CPI)?

Accepted Answer

The consumer price index measures the pr

Question 6

The technological environment includes only electronics and telecommunications used to perform business activities.

Accepted Answer

A) True 
 B)False

Question 7

Economic systems differ in how factors of production are used.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Tax increases and decreases are a form of fiscal policy.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Physical resources include the data and other information used by businesses.

Accepted Answer

A) True 
 B)False

Question 12

Explain what is meant by purchasing power parity.

Accepted Answer

Purchasing power parity is the principle

Question 13

The government is concerned that the economy is being stifled by low consumer spending. Which course of action should the Federal Reserve take if it wishes to improve the economy?

Accepted Answer

A)  The Federal Reserve should buy securities. 
B)  The Federal Reserve should sell securities. 
C)  The Federal Reserve should increase the reserve requirement. 
D)  The Federal Reserve should increase the discount rate. 
E)  The Federal Reserve should sell securities and lower the discount rate. 
A)  The Federal Reserve should buy securities. 
B)  The Federal Reserve should sell securities. 
C)  The Federal Reserve should increase the reserve requirement. 
D)  The Federal Reserve should increase the discount rate. 
E)  The Federal Reserve should sell securities and lower the discount rate.

Question 14

Which of the following best gives the meaning of the term gross domestic product?

Accepted Answer

A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods that a country's citizens can purchase with the currency used in their economic system 
C)  conditions of the economic system in which an organization operates 
D)  total value of all goods and services produced within a given period by a national economy through domestic factors of production 
E)  indicators of available goods and services produced within a specific domestic market 
A)  total quantity of goods and services produced by an economic system 
B)  total quantity of goods that a country's citizens can purchase with the currency used in their economic system 
C)  conditions of the economic system in which an organization operates 
D)  total value of all goods and services produced within a given period by a national economy through domestic factors of production 
E)  indicators of available goods and services produced within a specific domestic market

Question 15

Which of the following is one of the elements required in private enterprise?

Accepted Answer

A)  adequate representation in the government 
B)  freedom from foreign competition 
C)  the opportunity for market leadership 
D)  the right to ownership of property 
E)  numerous regulatory agencies 
A)  adequate representation in the government 
B)  freedom from foreign competition 
C)  the opportunity for market leadership 
D)  the right to ownership of property 
E)  numerous regulatory agencies

Question 16

A Danish company has built a production facility on the island of New Vermont. Will the value of the goods produced by the Danish company be included in New Vermont's GNP? Explain.

Accepted Answer

The value of the goods won't b

Question 17

Based on the concepts of demand and supply, how is Expert Electronics pricing its computer systems?

Accepted Answer

It appears that Expert Electronics is pr

Question 18

Which of the following does NOT represent a degree of competition in a private enterprise system?

Accepted Answer

A)  oligopoly 
B)  socialism 
C)  monopoly 
D)  perfect competition 
E)  monopolistic competition 
A)  oligopoly 
B)  socialism 
C)  monopoly 
D)  perfect competition 
E)  monopolistic competition

Question 19

If the Fed is concerned with a potential recession, what course of action should it take?

Accepted Answer

A)  Lower the reserve requirement and sell securities. 
B)  Lower the discount rate and increase the reserve requirement. 
C)  Sell securities and lower the discount rate. 
D)  Buy securities and lower the discount rate. 
E)  Buy securities and increase the reserve requirement. 
A)  Lower the reserve requirement and sell securities. 
B)  Lower the discount rate and increase the reserve requirement. 
C)  Sell securities and lower the discount rate. 
D)  Buy securities and lower the discount rate. 
E)  Buy securities and increase the reserve requirement.

Question 20

Ernesto's Pizza is about to offer customers a new variety of a personal pizza. Which of the following actions by Ernesto's Pizza would most likely prevent a surplus or a shortage of the personal pizzas in its first week?

Accepted Answer

A)  limit the supply of the personal pizza 
B)  lower demand for the personal pizza 
C)  set the price of substitute goods 
D)  estimate the market price of the personal pizza 
E)  lower the price of the pizza throughout the week 
A)  limit the supply of the personal pizza 
B)  lower demand for the personal pizza 
C)  set the price of substitute goods 
D)  estimate the market price of the personal pizza 
E)  lower the price of the pizza throughout the week

What does a planned economy rely on a centralized government to do?

What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?

The United States government manages the collection and spending of its revenues through monetary policy.

What marks the key difference between economic systems?

What is measured by the consumer price index (CPI)?

The technological environment includes only electronics and telecommunications used to perform business activities.

Economic systems differ in how factors of production are used.

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

Tax increases and decreases are a form of fiscal policy.

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?

Physical resources include the data and other information used by businesses.

Explain what is meant by purchasing power parity.

The government is concerned that the economy is being stifled by low consumer spending. Which course of action should the Federal Reserve take if it wishes to improve the economy?

Which of the following best gives the meaning of the term gross domestic product?

Which of the following is one of the elements required in private enterprise?

A Danish company has built a production facility on the island of New Vermont. Will the value of the goods produced by the Danish company be included in New Vermont's GNP? Explain.

Based on the concepts of demand and supply, how is Expert Electronics pricing its computer systems?

Which of the following does NOT represent a degree of competition in a private enterprise system?

If the Fed is concerned with a potential recession, what course of action should it take?

Ernesto's Pizza is about to offer customers a new variety of a personal pizza. Which of the following actions by Ernesto's Pizza would most likely prevent a surplus or a shortage of the personal pizzas in its first week?

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

What does a planned economy rely on a centralized government to do?

What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?

The United States government manages the collection and spending of its revenues through monetary policy.

What marks the key difference between economic systems?

What is measured by the consumer price index (CPI)?

The technological environment includes only electronics and telecommunications used to perform business activities.

Economic systems differ in how factors of production are used.

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

Tax increases and decreases are a form of fiscal policy.

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?

Physical resources include the data and other information used by businesses.

Explain what is meant by purchasing power parity.

The government is concerned that the economy is being stifled by low consumer spending. Which course of action should the Federal Reserve take if it wishes to improve the economy?

Which of the following best gives the meaning of the term gross domestic product?

Which of the following is one of the elements required in private enterprise?

A Danish company has built a production facility on the island of New Vermont. Will the value of the goods produced by the Danish company be included in New Vermont's GNP? Explain.

Based on the concepts of demand and supply, how is Expert Electronics pricing its computer systems?

Which of the following does NOT represent a degree of competition in a private enterprise system?

If the Fed is concerned with a potential recession, what course of action should it take?

Ernesto's Pizza is about to offer customers a new variety of a personal pizza. Which of the following actions by Ernesto's Pizza would most likely prevent a surplus or a shortage of the personal pizzas in its first week?

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