Question 1

What are the two primary factors economists consider when evaluating the American economy?

Accepted Answer

A)   growth in GDP and jobs
B)   standard of living and consumer confidence
C)   government regulation and profitability
D)   national debt and budget deficits
E)   growth in the tax base and unemploymentF) A) and C)
G) A) and E)

Question 2

Oscar is a real estate entrepreneur in a country that promotes the individual right to own property, earn profits, make decisions about business operations, and choose productivity systems. Which system best describes Oscar's business environment?

Accepted Answer

A)   mixed economy
B)   free market
C)   capitalist
D)   free enterprise
E)   socialistF) A) and E)
G) A) and B)

Question 3

How are profits handled in communist systems?

Accepted Answer

A)   Profits earned by small businesses may be reinvested in the business.
B)   Individuals are free to keep profits after paying taxes.
C)   Businesses are free to keep profits after paying taxes.
D)   Excess income goes to the government.
E)   Only profits from government-owned industries go to the government.F) A) and C)
G) A) and D)

Question 4

Explain the relationship between supply and demand in a free-enterprise system.

Accepted Answer

In the United States and in other free-e...

Question 5

As the service economy in America continues to rapidly grow, advances in technology are contributing to new service products based on technology and digital media that provide smart phones, social networking, and e-commerce. This suggests that the country may be moving toward being a ________ economy.

Accepted Answer

A)   socialized
B)   laissez-faire
C)   digital
D)   marketing
E)   manufacturingF) A) and E)
G) A) and B)

Question 6

When you take your clothes to the dry cleaner to be cleaned or go to the spa to get a massage, you are not receiving a product because you have not received anything tangible in return.

Accepted Answer

A) True 
 B)False

Question 7

All of the following are examples of mixed economies EXCEPT

Accepted Answer

A)   in socialist France, the French government owns the postal service industry.
B)   in socialist Sweden, most businesses are owned and operated by private individuals.
C)   in capitalist United States, an independent federal agency operates the postal service.
D)   in once-communist Russia, private ownership of businesses has been implemented.
E)   in communist China, state capitalism is used to advance the economy.F) B) and D)
G) A) and D)

Question 8

Several employees in a well-known corporation, Truck Corporation, were arrested for intentionally selling defective truck parts to their customers. Scandals like this

Accepted Answer

A)   do not affect public confidence in corporations.
B)   undermine public confidence in corporations.
C)   cause society to boycott corporations.
D)   have a positive effect on retired employees.
E)   resolve the debate about ethics in business.F) A) and D)
G) C) and E)

Question 9

Master Motors is working to find a way to produce the SUVs and trucks its customers want while meeting environmental requirements. This is an effort to please multiple

Accepted Answer

A)   shareholders.
B)   clients.
C)   stakeholders.
D)   businesses.
E)   priorities.F) B) and D)
G) None of the above

Question 10

Decisions regarding product adoption, development, branding, and positioning fall under which element of the marketing mix?

Accepted Answer

A)   price
B)   product
C)   place
D)   distribution
E)   promotionF) None of the above
G) A) and C)

Question 11

A country experiences a rapid expansion of its economy, which resulted in prices doubling every 12 hours. This is an example of

Accepted Answer

A)   recession.
B)   hyperinflation.
C)   deflation.
D)   depression.
E)   equilibrium.F) A) and B)
G) C) and D)

Question 12

All of the following contributed to the evolution of the service economy in America EXCEPT

Accepted Answer

A)   an increase in the standard of living.
B)   the desire of women to be stay-at-home-moms.
C)   more women entering the workforce.
D)   major shifts in the population.
E)   an increase in disposable income.F) A) and B)
G) A) and C)

Question 13

Before the Industrial Revolution, the economy of North America under the colonists was characterized by

Accepted Answer

A)   farming, and the production of agricultural goods.
B)   the export of manufactured goods to England.
C)   a scarcity of natural resources.
D)   dependence on England for everyday goods.
E)   a hunter/gatherer society.F) A) and B)
G) B) and C)

Question 14

How does modified capitalism differ from pure capitalism?

Accepted Answer

A)   In pure capitalism, the government intervenes and regulates all business.
B)   In modified capitalism, the government doesn't intervene or regulate business at all.
C)   In modified capitalism, the government intervenes and regulates business to some extent.
D)   In pure capitalism, the government intervenes and regulates basic industries only.
E)   In modified capitalism, the government relies on individuals to regulate all aspects of business, including passing laws.F) C) and D)
G) A) and B)

Exam 1: The Dynamics of Business and Economics

A country experiences a rapid expansion of its economy, which resulted in prices doubling every 12 hours. This is an example of

Correct Answer
verified

All of the following contributed to the evolution of the service economy in America EXCEPT

Correct Answer
verified

Master Motors is working to find a way to produce the SUVs and trucks its customers want while meeting environmental requirements. This is an effort to please multiple

Correct Answer
verified

Several employees in a well-known corporation, Truck Corporation, were arrested for intentionally selling defective truck parts to their customers. Scandals like this

Correct Answer
verified

How does modified capitalism differ from pure capitalism?

Correct Answer
verified

Before the Industrial Revolution, the economy of North America under the colonists was characterized by

Correct Answer
verified

What are the two primary factors economists consider when evaluating the American economy?

Correct Answer
verified

Decisions regarding product adoption, development, branding, and positioning fall under which element of the marketing mix?

Correct Answer
verified

Correct Answer
verified

When you take your clothes to the dry cleaner to be cleaned or go to the spa to get a massage, you are not receiving a product because you have not received anything tangible in return.

Correct Answer
verified

How are profits handled in communist systems?

Correct Answer
verified

Explain the relationship between supply and demand in a free-enterprise system.

Correct Answer
verified
In the United States and in other free-e...
View Answer

All of the following are examples of mixed economies EXCEPT

Correct Answer
verified

Oscar is a real estate entrepreneur in a country that promotes the individual right to own property, earn profits, make decisions about business operations, and choose productivity systems. Which system best describes Oscar's business environment?

Correct Answer
verified

Exam 1: The Dynamics of Business and Economics

A country experiences a rapid expansion of its economy, which resulted in prices doubling every 12 hours. This is an example of

Correct AnswerverifiedShow Answer

All of the following contributed to the evolution of the service economy in America EXCEPT

Correct AnswerverifiedShow Answer

Master Motors is working to find a way to produce the SUVs and trucks its customers want while meeting environmental requirements. This is an effort to please multiple

Correct AnswerverifiedShow Answer

Several employees in a well-known corporation, Truck Corporation, were arrested for intentionally selling defective truck parts to their customers. Scandals like this

Correct AnswerverifiedShow Answer

How does modified capitalism differ from pure capitalism?

Correct AnswerverifiedShow Answer

Before the Industrial Revolution, the economy of North America under the colonists was characterized by

Correct AnswerverifiedShow Answer

What are the two primary factors economists consider when evaluating the American economy?

Correct AnswerverifiedShow Answer

Decisions regarding product adoption, development, branding, and positioning fall under which element of the marketing mix?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When you take your clothes to the dry cleaner to be cleaned or go to the spa to get a massage, you are not receiving a product because you have not received anything tangible in return.

Correct AnswerverifiedShow Answer

How are profits handled in communist systems?

Correct AnswerverifiedShow Answer

Explain the relationship between supply and demand in a free-enterprise system.

Correct AnswerverifiedIn the United States and in other free-e...View AnswerShow Answer

All of the following are examples of mixed economies EXCEPT

Correct AnswerverifiedShow Answer

Oscar is a real estate entrepreneur in a country that promotes the individual right to own property, earn profits, make decisions about business operations, and choose productivity systems. Which system best describes Oscar's business environment?

Correct AnswerverifiedShow Answer

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In the United States and in other free-e...
View Answer

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Correct Answer
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