Question 1

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 2

Which of the following best describes what the consumer price index is used to indicate?

Accepted Answer

A)  the average wage rate for a given region 
B)  the economic performance of key consumer product companies 
C)  the changes in the cost of consumer products over time 
D)  the percentage of consumers in the total population looking for work 
E)  the number of price increases within a given period of time 
A)  the average wage rate for a given region 
B)  the economic performance of key consumer product companies 
C)  the changes in the cost of consumer products over time 
D)  the percentage of consumers in the total population looking for work 
E)  the number of price increases within a given period of time

Question 3

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 4

The pursuit of profits is how a business differs from organizations such as most universities, hospitals, and government agencies.

Accepted Answer

A) True 
 B)False

Question 5

If Expert Electronics cuts the prices for its computer system, how will competitors respond?

Accepted Answer

In an oligopoly, when one firm

Question 6

A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations. Explain how the three economic systems allocate their resources.

Accepted Answer

A nation's resources, often referred to

Question 7

How does the external environment affect business?

Accepted Answer

All businesses operate within the contex

Question 8

What is the point at which the supply curve and the demand curve intersect on a graph?

Accepted Answer

A)  equilibrium price 
B)  decision point 
C)  surplus price 
D)  perfect price 
E)  parity point 
A)  equilibrium price 
B)  decision point 
C)  surplus price 
D)  perfect price 
E)  parity point

Question 9

A city of 150,000 people has a large commercial sector bringing in businesses from the surrounding region. In 2005, there was 2.75 million square feet of commercial space available. Five years later, after a building boom, there was 5.5 million square feet of commercial space available. Which effect will most likely occur?

Accepted Answer

A)  The equilibrium price of commercial real estate will not be effected. 
B)  The increase in the supply of commercial real estate will lead to a corresponding increase in its price. 
C)  The price of commercial real estate will decrease, absent a dramatic increase in demand. 
D)  The increase in the supply of commercial real estate will lead to an increase in resource prices. 
E)  The increase in supply will cause a corresponding increase in demand. 
A)  The equilibrium price of commercial real estate will not be effected. 
B)  The increase in the supply of commercial real estate will lead to a corresponding increase in its price. 
C)  The price of commercial real estate will decrease, absent a dramatic increase in demand. 
D)  The increase in the supply of commercial real estate will lead to an increase in resource prices. 
E)  The increase in supply will cause a corresponding increase in demand.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Economic indicators help to assess the performance of an economy.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Honata Automobiles is a South Korean-owned company. Honata has factories in Indonesia and Brazil. Which of the following is/are affected by the production of Honata automobiles?

Accepted Answer

A)  Indonesia, Brazil, and South Korea's GDP 
B)  Indonesia and Brazil's GDP 
C)  South Korea's GDP 
D)  Indonesia and Brazil's GNP 
E)  Indonesia, Brazil, and South Korea's GNP 
A)  Indonesia, Brazil, and South Korea's GDP 
B)  Indonesia and Brazil's GDP 
C)  South Korea's GDP 
D)  Indonesia and Brazil's GNP 
E)  Indonesia, Brazil, and South Korea's GNP

Question 14

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 15

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 16

Explain what is meant by the term profits.

Accepted Answer

Profits are what is left over

Question 17

How would you characterize the level of competition for computers in New Vermont? How are prices set in this type of competitive environment?

Accepted Answer

Because there are only a few sellers, th

Question 18

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

Accepted Answer

Businesses are organizations that provid

Question 19

The Fed has opted to buy securities and lower the reserve requirement. What will most likely happen as a result of this course of action?

Accepted Answer

A)  The money supply will increase thereby stimulating the economy. 
B)  The money supply will increase thereby reducing inflation. 
C)  The money supply will increase thereby causing disinflation. 
D)  The money supply will decrease thereby reducing the possibility of a recession. 
E)  The money supply will decrease thereby reducing deflation. 
A)  The money supply will increase thereby stimulating the economy. 
B)  The money supply will increase thereby reducing inflation. 
C)  The money supply will increase thereby causing disinflation. 
D)  The money supply will decrease thereby reducing the possibility of a recession. 
E)  The money supply will decrease thereby reducing deflation.

Question 20

Some in the Sponeto government would like the country to appeal to the World Bank for funding toward economic development, rather than short-term monetary stimulation. Which of the following, if True, would strengthen the case for this course of action?

Accepted Answer

A)  Sponeto has come under criticism in the United Nations for alleged human rights abuses. 
B)  Sponeto has been able to grow enough food to export to surrounding nations. 
C)  Corruption is a major problem among Sponeto's government officials. 
D)  Sponeto urgently needs humanitarian aid due to a recent natural disaster. 
E)  Chronic and widespread poverty is Sponeto's biggest economic problem. 
A)  Sponeto has come under criticism in the United Nations for alleged human rights abuses. 
B)  Sponeto has been able to grow enough food to export to surrounding nations. 
C)  Corruption is a major problem among Sponeto's government officials. 
D)  Sponeto urgently needs humanitarian aid due to a recent natural disaster. 
E)  Chronic and widespread poverty is Sponeto's biggest economic problem.

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?

Which of the following best describes what the consumer price index is used to indicate?

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

The pursuit of profits is how a business differs from organizations such as most universities, hospitals, and government agencies.

If Expert Electronics cuts the prices for its computer system, how will competitors respond?

A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations. Explain how the three economic systems allocate their resources.

How does the external environment affect business?

What is the point at which the supply curve and the demand curve intersect on a graph?

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

Economic indicators help to assess the performance of an economy.

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

Honata Automobiles is a South Korean-owned company. Honata has factories in Indonesia and Brazil. Which of the following is/are affected by the production of Honata automobiles?

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?

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

Explain what is meant by the term profits.

How would you characterize the level of competition for computers in New Vermont? How are prices set in this type of competitive environment?

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

The Fed has opted to buy securities and lower the reserve requirement. What will most likely happen as a result of this course of action?

Some in the Sponeto government would like the country to appeal to the World Bank for funding toward economic development, rather than short-term monetary stimulation. Which of the following, if True, would strengthen the case for this course of action?

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

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?

Which of the following best describes what the consumer price index is used to indicate?

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

The pursuit of profits is how a business differs from organizations such as most universities, hospitals, and government agencies.

If Expert Electronics cuts the prices for its computer system, how will competitors respond?

A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations. Explain how the three economic systems allocate their resources.

How does the external environment affect business?

What is the point at which the supply curve and the demand curve intersect on a graph?

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

Economic indicators help to assess the performance of an economy.

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

Honata Automobiles is a South Korean-owned company. Honata has factories in Indonesia and Brazil. Which of the following is/are affected by the production of Honata automobiles?

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?

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

Explain what is meant by the term profits.

How would you characterize the level of competition for computers in New Vermont? How are prices set in this type of competitive environment?

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

The Fed has opted to buy securities and lower the reserve requirement. What will most likely happen as a result of this course of action?

Some in the Sponeto government would like the country to appeal to the World Bank for funding toward economic development, rather than short-term monetary stimulation. Which of the following, if True, would strengthen the case for this course of action?

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