Question 1

Which of the following is not one of the four states included in a typical business cycle?

Accepted Answer

A)   Repression
B)   Peak
C)   Recession
D)   Trough
E)   RecoveryF) A) and E)
G) A) and D)

Question 2

Best Buy stores would most likely be classified as

Accepted Answer

A)   service businesses.
B)   sole proprietorships.
C)   a marketing intermediary.
D)   manufacturing establishments.
E)   perfect competition.F) C) and D)
G) A) and B)

Question 3

When Toyota experienced declining sales as a result of quality and safety issues, it began offering buyer incentives to new-car buyers. Nearly immediately, Ford and General Motors began similar promotions. These businesses

Accepted Answer

A)   represent an oligopoly in which there are few sellers, and each seller has considerable control over price.
B)   represent a monopoly in which only one firm supplies a product or products.
C)   are engaging in monopolistic competition in which there are many buyers as well as a relatively large number of sellers that differentiate their products from those of competitors.
D)   are engaging in pure competition, in which no single seller is powerful enough to affect prices.
E)   are engaging in monopolistic competition, in which the products are very similar.F) A) and C)
G) B) and E)

Question 4

Increased competition from firms in other nations is an example of the

Accepted Answer

A)   technological environment.
B)   global environment.
C)   command environment.
D)   laissez-faire environment.
E)   mixed environment.F) A) and D)
G) All of the above

Question 5

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Accepted Answer

A)   Human
B)   Financial
C)   Information
D)   Major
E)   MaterialF) A) and B)
G) A) and C)

Question 6

Which of the following industries would most likely have the characteristics of an oligopoly?

Accepted Answer

A)   Clothing
B)   Restaurants
C)   Automobiles
D)   Cameras
E)   Make-upF) A) and B)
G) C) and D)

Question 7

What resource tells the managers of a business how effectively the other three resources are being combined and used?

Accepted Answer

A)   Technical
B)   Human
C)   Financial
D)   Material
E)   InformationalF) B) and C)
G) A) and B)

Question 8

The current technology environment

Accepted Answer

A)   is not as important as it was fifteen years ago.
B)   does not affect manufacturing firms.
C)   changes the way business firms communicate with customers.
D)   doesn't change as often as it did fifteen years ago.
E)   is not a concern for most firms that do business only in the United States.F) B) and C)
G) B) and E)

Question 9

For a Pepperidge Farm production facility, managers and employees would be

Accepted Answer

A)   natural resources.
B)   capital.
C)   information resources.
D)   labor.
E)   the entrepreneurial resource.F) B) and E)
G) B) and C)

Question 10

The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.

Accepted Answer

A) True 
 B)False

Question 11

Home Inspirations
Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Hailey plans on taking over the business. Hailey is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, any other time, sales are not so good.
Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increase, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company.
-Refer to Home Inspirations. Hailey's goal of offering products with unique features and special services is called

Accepted Answer

A)   specialization.
B)   product differentiation.
C)   barter.
D)   a factory system.
E)   a natural monopoly.F) All of the above
G) A) and E)

Question 12

In a monopoly situation, there is no close substitute for the product or service.

Accepted Answer

A) True 
 B)False

Question 13

All except ____ are considered important, major events that shaped the nation's economy during the period of 1940 to 2000.

Accepted Answer

A)   the Korean War
B)   the institution of Franklin D . Roosevelt's federal government programs
C)   the shortage of crude oil
D)   high inflation with high interest rates and reduced business profits
E)   the Vietnam WarF) C) and E)
G) A) and B)

Question 14

Generally there are three types of businesses―manufacturing businesses, service businesses, and marketing intermediaries.

Accepted Answer

A) True 
 B)False

Question 15

In France, income taxes are reduced so that individuals will have more income to spend, which in turn will stimulate the economy. This is an example of

Accepted Answer

A)   the business cycle.
B)   economic stimulation.
C)   monetary policy.
D)   recession.
E)   fiscal policy.F) All of the above
G) B) and E)

Question 16

Inflation is a general rise in the level of prices experienced by people in a nation.

Accepted Answer

A) True 
 B)False

Question 17

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Accepted Answer

A) True 
 B)False

Question 18

A business' efforts to sustain the planet and the business' participation in ecological movements are part of a firm's

Accepted Answer

A)   free enterprise system.
B)   stakeholder responsibilities.
C)   factors of production.
D)   social responsibility.
E)   business cycle.F) C) and D)
G) B) and E)

Question 19

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

Accepted Answer

A)   Germany
B)   Sweden
C)   Norway
D)   North Korea
E)   BritainF) A) and B)
G) C) and D)

Question 20

In the last decade of the century, ____ became a major force in the economy in regard to business.

Accepted Answer

A)   reduced business profits
B)   high interest rates
C)   high inflation
D)   the Internet
E)   shortage of crude oilF) None of the above
G) A) and B)

Exam 1: Exploring the World of Business and Economics

What resource tells the managers of a business how effectively the other three resources are being combined and used?

Correct Answer
verified

Inflation is a general rise in the level of prices experienced by people in a nation.

Correct Answer
verified

The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.

Correct Answer
verified

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Correct Answer
verified

Generally there are three types of businesses―manufacturing businesses, service businesses, and marketing intermediaries.

Correct Answer
verified

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Correct Answer
verified

In the last decade of the century, ____ became a major force in the economy in regard to business.

Correct Answer
verified

In a monopoly situation, there is no close substitute for the product or service.

Correct Answer
verified

Which of the following is not one of the four states included in a typical business cycle?

Correct Answer
verified

Which of the following industries would most likely have the characteristics of an oligopoly?

Correct Answer
verified

For a Pepperidge Farm production facility, managers and employees would be

Correct Answer
verified

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

Correct Answer
verified

All except ____ are considered important, major events that shaped the nation's economy during the period of 1940 to 2000.

Correct Answer
verified

Increased competition from firms in other nations is an example of the

Correct Answer
verified

A business' efforts to sustain the planet and the business' participation in ecological movements are part of a firm's

Correct Answer
verified

In France, income taxes are reduced so that individuals will have more income to spend, which in turn will stimulate the economy. This is an example of

Correct Answer
verified

Best Buy stores would most likely be classified as

Correct Answer
verified

The current technology environment

Correct Answer
verified

Correct Answer
verified

When Toyota experienced declining sales as a result of quality and safety issues, it began offering buyer incentives to new-car buyers. Nearly immediately, Ford and General Motors began similar promotions. These businesses

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

What resource tells the managers of a business how effectively the other three resources are being combined and used?

Correct AnswerverifiedShow Answer

Inflation is a general rise in the level of prices experienced by people in a nation.

Correct AnswerverifiedShow Answer

The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.

Correct AnswerverifiedShow Answer

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Correct AnswerverifiedShow Answer

Generally there are three types of businesses―manufacturing businesses, service businesses, and marketing intermediaries.

Correct AnswerverifiedShow Answer

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Correct AnswerverifiedShow Answer

In the last decade of the century, ____ became a major force in the economy in regard to business.

Correct AnswerverifiedShow Answer

In a monopoly situation, there is no close substitute for the product or service.

Correct AnswerverifiedShow Answer

Which of the following is not one of the four states included in a typical business cycle?

Correct AnswerverifiedShow Answer

Which of the following industries would most likely have the characteristics of an oligopoly?

Correct AnswerverifiedShow Answer

For a Pepperidge Farm production facility, managers and employees would be

Correct AnswerverifiedShow Answer

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

Correct AnswerverifiedShow Answer

All except ____ are considered important, major events that shaped the nation's economy during the period of 1940 to 2000.

Correct AnswerverifiedShow Answer

Increased competition from firms in other nations is an example of the

Correct AnswerverifiedShow Answer

A business' efforts to sustain the planet and the business' participation in ecological movements are part of a firm's

Correct AnswerverifiedShow Answer

In France, income taxes are reduced so that individuals will have more income to spend, which in turn will stimulate the economy. This is an example of

Correct AnswerverifiedShow Answer

Best Buy stores would most likely be classified as

Correct AnswerverifiedShow Answer

The current technology environment

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When Toyota experienced declining sales as a result of quality and safety issues, it began offering buyer incentives to new-car buyers. Nearly immediately, Ford and General Motors began similar promotions. These businesses

Correct AnswerverifiedShow Answer

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