Question 1

What is meant by the term capital?

Accepted Answer

The answer of What is meant by the term capital?...

Question 2

Which of the following is NOT a likely reason why a small business in a free enterprise system should seek the ideal combination of price charged and quantity supplied?

Accepted Answer

A)  to maintain goodwill among customers 
B)  to maximize profits 
C)  to avoid surpluses and shortages. 
D)  to avoid government regulation 
E)  to discourage competition

Question 3

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

Question 4

If productivity increases,prices charged to consumers will tend to increase as well.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

Compare and contrast the four degrees of competition in a private enterprise system.

Accepted Answer

The answer of Compare and contrast the four degrees of...

Question 7

Which of the following would be included in the gross domestic product of Brazil?

Accepted Answer

A)  the profits earned by a U.S.-owned automobile plant in Brazil 
B)  the profits earned by a Brazilian coffee company operating in the United States 
C)  the profits earned by a Brazilian coffee company operating in Peru 
D)  the profits earned by U.S. suppliers to Brazil operating in the United States. 
E)  the profits earned by Peruvian companies operating outside Brazil

Question 8

The point at which the supply curve and the demand curve intersect is the market price.

Accepted Answer

A) True 
 B)False

Question 9

A new U.S.company plans to introduce an inexpensive,high-quality line of shoes to the American market.It has found a manufacturer in another country that can produce the shoes at a low enough cost that they will still be cheaper than other brands of the same quality.Which of the following represents a potential ethical implication that the company should consider before beginning production?

Accepted Answer

A)  the country's existing labor laws and the factory working conditions 
B)  the average exchange rate of the country's currency over a ten-year period 
C)  the challenges of doing business in a country with a nonconvertible currency 
D)  the energy demands of the manufacturer's facility 
E)  the basic international business strategy it will use

Question 10

Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase?

Accepted Answer

A)  business cycle 
B)  demand and supply schedule 
C)  standard of living 
D)  aggregate output 
E)  consumer price index

Question 11

Which of the following BEST describes nominal GDP?

Accepted Answer

A)  total quantity of goods and services produced by an economic system 
B)  total value of all goods and services produced within a given period by a national economy through domestic factors of production, measured in current dollars or with all components valued at current prices 
C)  total value of all goods and services produced within a given period by a national economy regardless of where the factors of production are located 
D)  total value of all goods and services produced within a given period by a national economy through domestic factors of production, adjusted to account for changes in currency values and price changes 
E)  total quantity of goods and services that are imported within a given period of time

Question 12

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 13

Why would a government MOST likely be concerned about its country carrying a trade deficit?

Accepted Answer

A)  A trade deficit means that the country's productivity is low. 
B)  A trade deficit means local companies do not have enough competition. 
C)  A trade deficit ties up money that could be used for economic growth. 
D)  A trade deficit decreases demand for goods overall. 
E)  A trade deficit means that consumers do not have enough purchasing power.

Question 14

Which of the following is a likely cause of increased prices for products,decreased purchasing power,and decreased profit margins?

Accepted Answer

A)  low unemployment 
B)  stagnant wages. 
C)  declining living standards 
D)  cyclical inflation 
E)  limited credit

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Describe monopolistic competition.

Accepted Answer

The answer of Describe monopolistic competition....

Question 17

Which of the following,if true,would weaken the argument for a price increase?

Accepted Answer

A)  The input costs of raw materials are expected to increase further in the coming months. 
B)  Customers are loyal to the brand mainly because they believe in the quality of ingredients used. 
C)  Anon's competitors have announced an increase in prices. 
D)  One of Anon's major competitors has just declared bankruptcy. 
E)  Market research done by the company reveals that demand for Widgets is readily affected by the price.

Question 18

The CEOs of Company A and B are investigating expansion into new markets,which will provide greater trade volume.Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

Accepted Answer

A)  Country X invests primarily in its textile industry, while Country Y focuses on producing high-yield crops. 
B)  Company A is willing to provide parts used in the production of equipment by Company B in exchange for discounts on manufacturing equipment. 
C)  The southern region of Country X over-produces a wide range of produce, while few crops can be efficiently grown in the northern region. 
D)  Company A and Company B are exploring the possibility of a joint venture to provide goods to Country X. 
E)  Country X is looking to invest in foreign markets and Country Y currently has a large trade deficit.

Question 19

Gross domestic product (GDP)refers to the total value of goods and services produced by a national economy within a given period,regardless of where the factors of production are located.

Accepted Answer

A) True 
 B)False

Question 20

What is socialism?

Accepted Answer

The answer of What is socialism?...

Exam 1: The U.S.Business Environment

What is meant by the term capital?

Which of the following is NOT a likely reason why a small business in a free enterprise system should seek the ideal combination of price charged and quantity supplied?

What does productivity measure?

If productivity increases,prices charged to consumers will tend to increase as well.

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

Compare and contrast the four degrees of competition in a private enterprise system.

Which of the following would be included in the gross domestic product of Brazil?

The point at which the supply curve and the demand curve intersect is the market price.

Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase?

Which of the following BEST describes nominal GDP?

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

Why would a government MOST likely be concerned about its country carrying a trade deficit?

Which of the following is a likely cause of increased prices for products,decreased purchasing power,and decreased profit margins?

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

Describe monopolistic competition.

Which of the following,if true,would weaken the argument for a price increase?

The CEOs of Company A and B are investigating expansion into new markets,which will provide greater trade volume.Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

Gross domestic product (GDP)refers to the total value of goods and services produced by a national economy within a given period,regardless of where the factors of production are located.

What is socialism?