- contact lenses purchased by an individual are an example of a(n) good
Your answer:
Capital
Intangible
Scarce
Consumer
- Which of the following best defines the term economic services
Your answer:
productive acts that satisfy economic wants
tangible objects which have monetary value
products tht do not require distribution
useful, scarce, and transferrable goods
- Desires for clothes, lawn care, and CDs would be classified as
Your answer:
goods
noneconomic wants
services
economic wants
- What type of product do consumers usually need more information about before buying in order to get the best price?
Your answer:
shopping
convenience
specialty
industrial
- Cotton is an example of a ______ resource
Your answer:
natural
capital
land
labor
- More money payments are recieved for an economic good when it's value is
Your answer:
estimated
low
high
limited
- Which of the following best describes capital goods
Your answer:
can only be used once before they are consumed
purchased by businesses for use in their operations
purchased and used by individuals to satisfy wants and needs
available in unlimited amounts
- In order for consumption to occur, goods and services must be
Your answer:
produced
specialized
improved
exchanged
- Dealing with shortages of resources is included in the study of
Your answer:
private enterprise
sociology
marketing
economics
- A producer wants to use copper in a new product line, but its high cost would rasie the selling price. Stainless steel will be used instead. This is an example of a(n)
Your answer:
opportunity cost
noeconomic want
Exchange
trade-off
- Products that are available where they are needed have ________utility
Your answer:
possession
form
place
time
- Many stores have extended hours between Thanksgiving and Christmas. In this situation, marketing has affected ______ utility
Your answer:
place
profit
time
possession
- What type of utility exists when a food processor converts peanuts into peanut butter?
Your answer:
form
time
place
possession
- If there is a large demand for a product and a small supply, the price will usually
Your answer:
stay the same
go down, then up
go down
go up
- Which of the following describes the condition that exists when supply exceeds demand
Your answer:
Seller's Market
Shortage
Equilibrium
Buyer's Market
- Which of the following determines whether consumers can buy goods or services
Your answer:
competition
production costs
labor costs
buying power
- What does rationing mean in economic terms?
Your answer:
Limiting the number of consumers who buy a product
Making a comparison between one price and another
Giving legal control of the market to one supplier
Allowing scare products to be distributed by the government
- The price consumers are willing to pay for a product is directly related to the
Your answer:
Number of times the product is reordered
Size of the firm selling the product
Delivery time required for the product
Value of the product to the purchasers
- John, a farmer, learned prior to the planting season that the price of wheat had increased relative to the price of corn. To gain the greatest profit, John shoudl plant
Your answer:
all corn and no wheat
an equal amount of corn and wheat
more wheat than corn
more corn than wheat
- The most common form of business ownership under a communist command economic system is _________________ ownership
Your answer:
corporate
private
government
union
- Which of the following economic systems is charascterized by government protection of competition
Your answer:
Traditional
Communist
Socialist
Market
- Which of the following is a reason why form utility is so important?
Your answer:
Consumers use the products they purchase
Few materials are used in the raw state
They require businesses to offer equal pay for equal work
Most products are marketed at a certain time
- Countries whose governments provide citizens with free medical care, education, and othe benefits often are referred to as ______ states
Your answer:
Consumer
Military
Welfare
Capitalism
- Which of the following is a true statement about minimum-wage laws:
Your answer:
They require businesses to offer equal pay for equal work
They specify the lowest wage businesses can pay workers
They are an example of government monetary policy
They are intended to prevent the use of child labor
- Providing government loans to small businesses is an example of the government's intervening in the economy in order to
Your answer:
regulate the workplace
conserve the environment
improve public welfare
protect competition
- Which of the following is one of the orginial roles that government was intended to have in business?
Your answer:
Enforce Laws
Protect Consumers
Collect Taxes
Conserve Resources
- The freedom to own private property allows people in a private enterprise economy to earn the income they need in order to
Your answer:
function in a group
share experiences
live independantly
work together
- The economic basis for the private economic system is the
Your answer:
profit motive
competition
market place
law of supply
- Because individuals and businesses are the primary decision makers, while government helps to regulate and control the system, the United State private enterprise system is considered a ___________ economic system
Your answer:
mixed
traditional
command
socialist
- One of the disadvantages of a private enterprise is
Your answer:
pricing system
limited government involvement
unequal distribution of income
competition
- Any factor that causes changes in supply and demand will cause changes in
Your answer:
value
price
utility
usefulness
- The only circumstance under which a business can be sure of realizing a profit is when it's
Your answer:
expenses are kept under control
income is greater than expenses
vendors offer discounts
customers pay in cash
- A major factor affecting a businesses's profit but over which, the business has little control is the
Your answer:
expenses of the buisness
price charged for goods/services
output from workers in the business
economiy of the nation
- One of the ways that a business can increase its profits is by
Your answer:
extending working hours
hiring more workers
increasing worker efficiency
charging higher prices
- A new employee of a large department store asks, "Why does the company spend so much money screening credit applications?" It seems such a waste of tiem." An appropriate answer to give this employee would be to _____________ risk.
Your answer:
retain
avoid or eliminate
transfer
prevent or control
- When a new product on the market reduces sales of your company's product, your company is experiencing economic risk caused by
Your answer:
product obsolescence
the efforts of competitors
shifts in consumer demand
government intervention
- A business that decides to lease its current bulding instead of buying it is transferring risk through
Your answer:
insurance
contractual agreement
avoidance
buisness organizaiton
- wildfires swept through Montana during the summer of 2000 and consumed many homes and buisnesses. Business owners will rebuild their businesses because they feel that the risk involved with wildfires is "just part of doing buisness in montana." Which type of risk are they prepared to encounter?
Your answer:
Human
Economic
Natural
Incompetence
- Competition benefits consumers by making it possible for them to have
Your answer:
the methods of production controlled
reduced product standards
better products at lower prices
fewer products from which to choose
- What is the economic condition in which there is only one supplier of a certain good or service and not competing products exist
Your answer:
Inflation
Monopoly
False Advertising
Price Discrimination
- Which of the following pieces of legislation was created to protect competitors from takeovers that would hinder copmetition
Your answer:
Sherman Antitrust Act
Robinson-Patman Act
Federal Trade Commission Act
Celler-Kefauver Antimerger Act
- A grocery store offering delivery service and new products not offered by other markets is an example of ___________ competition
Your answer:
Indirect
Unfair
Price
Non-price
- Which of the following is a direct result of increased productivity
Your answer:
higher failure of buisnesses
Rice in consumer prices
greater buisiness expense
higher standard of living
- Which of the following is likely to increase GDP
Your answer:
Reduced Productivity
Improved Technology
Improved working conditions
Lower Prices
- Which of the following is an advantage of specialization of labor
Your answer:
Income negotiations
higher worker morale
increased production
Labor Regulations
- A disadvantage of labor specialization by job tasks is
Your answer:
increased worker independence
obsolescense of worker's jobs
high morale
excess pride in work
- A production worker is required to perform the same job task 20 times each day at a certain pace and according to specific guidelines. This type of job is considered to be one that has
Your answer:
low scope and low depth
high scope and high depth
low scope and high depth
high scope and low depth
- Jennifer found her job to be more satisfying after her manager gave her more freedom to make decisions and to set her own work schedule every week. This is a good example of job
Your answer:
enlargement
specialization
rotation
enrichment
- Why are unions a powerful force in business
Your answer:
They require more employees to be hired than are actually needed to complete a job
they encourage nonstriking employees to work for striking employees
they increase the bargaining power of workers
they enable management to close business temorarily during labor conflicts
- Why do unions and Management experience conflicts
Your answer:
Management wants to keep the buisness operating and has idease similar to those of unions about how to do that.
Unions want to claose buisnesses and try to achieve that goal
They both want to close buisinesses and have similar ideas about how to achieve that goal
They both want to keep the buisness operating but have different ideas about how to reach that goal
- What type of union exists when some employees of a business join a union and pay dues but other employees do not participate
Your answer:
agency shop
union shop
Non-union shop
open shop
- What category of GDP would include the money Kathy's family pays to the state university for her college tuition?
Your answer:
gross private domestic investment
Net exports of goods and services
Government purchases of good and services
personal consumption expenditures
- in calculating GDP, economists try to avoid double counting because it would
Your answer:
lower the standard of living
inflate the value of GDP
increase the price of products
cause legal problems
- Advancements in technology, management techniques, and employee training enable businesses to encourage economic growth by
Your answer:
increasing their productivity
increasing natural resources
shifting consumer investmets
improving working conditions
- What might workers voluntarily attempt to do to help when they are told a business has financial problems?
Your answer:
seek new employment
negotiate loans
reduce efficiency
increase productivity
- One of the most comprehensive measures of an economy's output, the GDP, is always expressed in terms of
Your answer:
investments
total net exports
number of items produced
dollars
- Which of the following is characteristic of a depression:
Your answer:
a high rate of production
increased job availability
increased consumer spending
a high rate of business failures
- The economy of the country of Swizzleland is undergoing rapid changes. Unemployement is low, consumer spending is high, and factories are increasing their production capabilites. Swizzleland is in the ______ phase of the business cycle
Your answer:
expansion
trough
peak
contraction
- In September of 2002, the Riley Rubber Company moved into the contraction phase of its business cycle. At the end of march, the company was still in an economic contraction. It can be said that the Riley Rubber Company was experiencing a(n)
Your answer:
expansion
recession
disillusion
depression
- Nations that have an unequal distribution of economic factors rely on each other for
Your answer:
technology
imports
exports
imports and exports
- Whenever the United States establishes trade relations with a developing nation, it means that the citizens of the developing country will be able to sell their goods an
Your answer:
a higher standard of living
the underground economy
the wise use of resources
an economic decline
- Countries record the flow of imports, expoerts, foreign aid, buisness investment, foreign investments, and money spent by tourists in order to determine their
Your answer:
need for trade missions
number of multinationals
balance of payments
volume of production
- One reason that a multinational corporation might move its operations to a foreign country is if that country offers
Your answer:
limited natural resources
lower labor costs
higher tax base
increased restrictions
- Which of the following economic laws is a business following when it stops hiring after its current employees achieve a certain level of productivity
Your answer:
Marginal revenues
Negative returns
Variable products
Diminishing returns
- Which of the following is decreasing when a buisness's marginal cost of producing a good is increasing
Your answer:
marginal product
employment rate
personal income
variable resource
- To calculate total revenue, a buiness multiplies the number of units sold by
Your answer:
marginal costs
marginal revenue
average price per unit
fixed costs
- Businesses that want to trade with foreign countries need to understan the _________ of those countries
Your answer:
environmental aspects
historical significance
cultural characteristics
geographical landmarks
- Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of
Your answer:
social relationships
class systems
gender roles
cultural values
- An American businessperson in London was offered a "cuppa" by the company's receptionist. the businessperson did not know that the receptionist was offering a cup of tea. This is an example of
Your answer:
economic differences
a business subculture
being uneducated
a language barrier
- The government uses the Consumer Price Index to measure inflation because prices in the various categories of goods and services
Your answer:
change porportionately
rise at different rates
decrease at the same time
fluctuate by season
- What is the percent of increase in the Consumer Price Index from the base years of 1982-1984 to 2001 if the CPI for 2001 is 163.77
Your answer:
63.7%
16.3%
67.5%
13.9%
- One way for the federal government to begin to solve the problem of the national debt is to eliminate
Your answer:
aid to education
transfer payments
state funding
deficit spending
- The wealthiest 20% of families in the U.S. Account for nearly half of all income earned each year, while the poorest 20% earn less than 4% of the nation's annual income. What term describes the economic problem?
Your answer:
unequal employment
income inequality
povety
income divergence
- What is the rate of inflation if the Consumer Price Index was 132.5 in 2000 and 137.3 in 2001?
Your answer:
4.2%
4.7%
3.3%
3.6%
- Which of the following is an example of a service business?
Your answer:
vending machine
copper mine
car rental
oil refinery
- Which of the following is a good guideline for a business that wants to be socially responsible
Your answer:
promise customers what they want
offer a safe work enviornment
use unethical business schemes
limit expensive product testing
- The main difference between retailers and wholesalers is that retailers sell to
Your answer:
other businesses
local distributors
ultimate consumers
resource producers
- Joan borrowed $10,000 from a relative to start her own business. This is an example of which type of business ownership?
Your answer:
sole proprietorship
partnership
corporation
limited partnership
- Which of the following is an advantage of incorporating a business:
Your answer:
ownership control
limited liability
Lower taxes
ease in starting
- The premium ice-cream Parlor has operated successfully for more than 15 years, and the owners would like to open other premium Ice-cream parlors all over the state. What type of expansion should they consider?
Your answer:
subchapter "s" corporation
limited liability company
product trade-name franchise
Business-format franchise
- John, Robert, and Charles were college friends who wanted to start a business. John has creative ability. Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a
Your answer:
corporation
merger
partnership
franchise
- When a producer is someone other than the consumer, some form of _______ must take place.
Your answer:
storage
exchange
promotion
economics
- The general role of marketing in our private enterprise system is to coordinate
Your answer:
production and pricing
selling and distribution
government and buisness
production and consumption
- Which marketing activity helps to create and stimulate demand for products?
Your answer:
promoting
distributing
pricing
planning
- Which of the following is an example of nondurable goods:
Your answer:
dry cleaning
cosmetics
air conditioning
automobiles
- one way that a business protects its vital records is by
Your answer:
filing them in cardboard boxes
keeping them in the buisness office
converting them to videotapes
storing them in a safe enviornment
- What type of information about equipment is important for buisinesses to keep in their records?
Your answer:
serial numbers
inventory status
Mechanical repairs
production process
- Why do businesses try to maintain accurate inventory records?
Your answer:
to maximize profits
to track equipment
to monitor vendors
to increase spending
- What might result if a business's merchandising budget called for purchasing more goods than customers' wanted?
Your answer:
expanded market
increased costs
additional sales
surplus profit
- Which of the following is a factor that might cause a business to adjust its budget figures
Your answer:
sales procedures
economic trends
operating policies
local elections
- How much should a business budget for expenses next month if it expects to pay $2,800 in salaries, $1,575 in rent and utilities, $350 in supplies, and $125 in sales tax?
Your answer:
$4,600
$4,575
$4,725
$4,850
- Marketers who study population shifts, traffic patterns, an competition are trying to reduce _______ risks
Your answer:
insurance
natural
human
economic
- Which of the following situations is an example of a pure risk that a business might face:
Your answer:
having a cashier who pockets cash from the register
introducing a new product to consumers
investing the business's funds in new equipment
investing profits in the stock market
- Businesses are able to purchase insurance to protect them from losses that may result from which of the following types of risk
Your answer:
accidental
gambling
financial
speculative
- Why is it important for businesses to be aware of, and react to, trends and changes in the marketplace?
Your answer:
to hire personnel
to remain competitive
to increase advertising
to identify resources
- A growing trend that is influencing the way that many companies do business is the concern for
Your answer:
distributing the wealth
monitoring the economy
protecting the environment
regulating the government
- What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds?
Your answer:
technical
demographic
socioeconomic
environmental
- Which of the following is a legal concept that affects businesses that operate foreign countries:
Your answer:
Eminent Domain
Absolute privilege
social responsibility
Sovereign immunity
- What type of contract exists if a customer signs a contract with a business agreeing to pay a certain price for a specific product
Your answer:
judical
bilateral
commercial
implied
- What type of property is a business protecting when it registers its trademark?
Your answer:
Intellectual
Tangible
Statutory
Administrative