Question 1

In the mid-1970s,American auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation.This happened because manufacturers

Accepted Answer

A)   lost sight of consumers' needs.
B)   attempted to satisfy consumers' needs.
C)   followed consumers' wants too closely.
D)   knew the economy would rise again.
E)   did not expect a profit.F) B) and D)
G) A) and B)

Question 2

A price at which the demanded quantity is equal to the produced quantity of that product is called the ____ price.

Accepted Answer

A)   market
B)   customer
C)   equality
D)   demand
E)   supplyF) None of the above
G) A) and B)

Question 3

When Honda 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 B)
G) B) and E)

Question 4

When Microsoft copyrighted its Windows software,it established a(n) ____ monopoly.

Accepted Answer

A)   domestic
B)   international
C)   legal
D)   natural
E)   unnaturalF) A) and B)
G) A) and C)

Question 5

The purpose of specialization is to

Accepted Answer

A)   reduce productivity.
B)   increase the efficiency of industrial workers.
C)   boost the morale of an employee because he or she is special.
D)   relieve boredom.
E)   make the nature of the work more general.F) All of the above
G) C) and E)

Question 6

____ is a loose,subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

Accepted Answer

A)   Employment success
B)   Standard of wealth
C)   Standard of living
D)   Economic satisfaction
E)   Satisfaction economic factorF) B) and C)
G) A) and B)

Question 7

A market or industry with only one seller is referred to as

Accepted Answer

A)   a limited command system.
B)   a monopoly.
C)   an oligopoly.
D)   monopolistic competition.
E)   a perfect competitive market.F) C) and E)
G) B) and D)

Question 8

A nation's economy fluctuates instead of growing at a steady pace every year.These fluctuations are generally referred to as the business cycle.Describe the four different phases of the business cycle.

Accepted Answer

The business cycle generally includes fo...

Question 9

All of the following are characteristics of communist countries such as Cuba except

Accepted Answer

A)   intensive production of goods the government needs.
B)   all workers contribute to society according to their ability.
C)   frequent shortages of consumer goods.
D)   government ownership of almost all economic resources.
E)   an adequate supply of consumer goods.F) C) and D)
G) B) and D)

Question 10

The monetary contributions that the owners of IBM pay for shares of the company's stock are ____ resources for IBM.

Accepted Answer

A)   material
B)   financial
C)   informational
D)   human
E)   manufacturingF) A) and B)
G) A) and C)

Question 11

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 12

Productivity can best be described as

Accepted Answer

A)   a country's total output.
B)   the efficiency of a company's operations.
C)   economic growth in a country.
D)   the average level of output per worker per hour.
E)   the average level of output per worker per year.F) None of the above
G) C) and D)

Question 13

The total of all federal deficits in the United States is called the

Accepted Answer

A)   economic debt.
B)   federal deficit.
C)   fiscal debt.
D)   national debt.
E)   consumer debt.F) C) and E)
G) A) and B)

Question 14

____ is a necessary and extremely important by-product of capitalism.

Accepted Answer

A)   Monopoly
B)   Socialism
C)   Communism
D)   Competition
E)   PovertyF) C) and E)
G) A) and B)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time.

Accepted Answer

A) True 
 B)False

Question 17

In a socialist economy,key industries owned by the government include all except

Accepted Answer

A)   utilities.
B)   communications.
C)   food production.
D)   banking.
E)   transportation.F) B) and D)
G) B) and E)

Question 18

Melinda lives in a country where individuals may own their own property and the factors of production,however,the government lays very heavy taxes on individuals and businesses and uses the taxes to provide life-long pensions to each citizen in accordance with their economic need.The government also provides almost free medical and dental services and education through college.This kind of economic system could best be described as

Accepted Answer

A)   communist.
B)   socialist.
C)   mixed.
D)   capitalist.E) A) and D)
F) A) and C)

Question 19

Since World War II,the average length of recessions has been

Accepted Answer

A)   six months
B)   eleven months
C)   twenty-two months
D)   three years
E)   five yearsF) A) and B)
G) D) and E)

Question 20

To compare the productivity of the United States to that of Japan,one should examine their respective

Accepted Answer

A)   defense budgets.
B)   trade deficits.
C)   gross domestic products.
D)   stock markets' performance.
E)   consumer price indices.F) B) and E)
G) A) and B)

Exam 1: Exploring the World of Business and Economics

Since World War II,the average length of recessions has been

Correct Answer
verified

The purpose of specialization is to

Correct Answer
verified

Correct Answer
verified

When Honda 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

In the mid-1970s,American auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation.This happened because manufacturers

Correct Answer
verified

All of the following are characteristics of communist countries such as Cuba except

Correct Answer
verified

____ is a necessary and extremely important by-product of capitalism.

Correct Answer
verified

The total of all federal deficits in the United States is called the

Correct Answer
verified

When Microsoft copyrighted its Windows software,it established a(n) ____ monopoly.

Correct Answer
verified

Productivity can best be described as

Correct Answer
verified

To compare the productivity of the United States to that of Japan,one should examine their respective

Correct Answer
verified

A price at which the demanded quantity is equal to the produced quantity of that product is called the ____ price.

Correct Answer
verified

The monetary contributions that the owners of IBM pay for shares of the company's stock are ____ resources for IBM.

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

In a socialist economy,key industries owned by the government include all except

Correct Answer
verified

____ is a loose,subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

Correct Answer
verified

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time.

Correct Answer
verified

A market or industry with only one seller is referred to as

Correct Answer
verified

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

Correct Answer
verified

A nation's economy fluctuates instead of growing at a steady pace every year.These fluctuations are generally referred to as the business cycle.Describe the four different phases of the business cycle.

Correct Answer
verified
The business cycle generally includes fo...
View Answer

Exam 1: Exploring the World of Business and Economics

Since World War II,the average length of recessions has been

Correct AnswerverifiedShow Answer

The purpose of specialization is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When Honda 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

In the mid-1970s,American auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation.This happened because manufacturers

Correct AnswerverifiedShow Answer

All of the following are characteristics of communist countries such as Cuba except

Correct AnswerverifiedShow Answer

____ is a necessary and extremely important by-product of capitalism.

Correct AnswerverifiedShow Answer

The total of all federal deficits in the United States is called the

Correct AnswerverifiedShow Answer

When Microsoft copyrighted its Windows software,it established a(n) ____ monopoly.

Correct AnswerverifiedShow Answer

Productivity can best be described as

Correct AnswerverifiedShow Answer

To compare the productivity of the United States to that of Japan,one should examine their respective

Correct AnswerverifiedShow Answer

A price at which the demanded quantity is equal to the produced quantity of that product is called the ____ price.

Correct AnswerverifiedShow Answer

The monetary contributions that the owners of IBM pay for shares of the company's stock are ____ resources for IBM.

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

In a socialist economy,key industries owned by the government include all except

Correct AnswerverifiedShow Answer

____ is a loose,subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

Correct AnswerverifiedShow Answer

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time.

Correct AnswerverifiedShow Answer

A market or industry with only one seller is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A nation's economy fluctuates instead of growing at a steady pace every year.These fluctuations are generally referred to as the business cycle.Describe the four different phases of the business cycle.

Correct AnswerverifiedThe business cycle generally includes fo...View AnswerShow Answer

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The business cycle generally includes fo...
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