Question 1

Ramona is living on a fixed income since her retirement. She is worried that the economy is expanding too rapidly, which could result in

Accepted Answer

A)   inflation.
B)   a depression.
C)   a recession.
D)   an economic contraction.
E)   deflation.F) C) and D)
G) A) and E)

Question 2

Who subscribes to the ideals of a communist economy as proposed by Karl Marx?

Accepted Answer

A)   Felix believes that in a society, people should contribute according to their ability and receive benefits according to what they need.
B)   Esther believes that the government should own only basic industries, like utilities and the postal service, and that individuals should own most small businesses.
C)   Ned believes that supply and demand should determine what goods and services are produced and that business owners should be able to keep the profits they make.
D)   Isra thinks that a society runs better when people have an unlimited choice of careers and the government stays out of small business ownership.
E)   Maria believes that profits earned by a small business should be reinvested in the business and that profits earned by the government should remain with the government.F) A) and C)
G) A) and B)

Question 3

Quentin owns a company that makes metal and wooden signs. In order to acquire the different kinds of wood and steel he needs to make his product, Quentin needs

Accepted Answer

A)   natural resources.
B)   labor.
C)   capital.
D)   factors of production.
E)   economics.F) A) and D)
G) None of the above C

Question 4

What would hinder business activity as it relates to an open economy?

Accepted Answer

A)   too much reliance on technology
B)   participating in international trade
C)   a focus on efficiency and productivity
D)   a focus on innovation
E)   too much regulation of business activitiesF) B) and D)
G) A) and B)

Question 5

All of the following are true of workplace diversity EXCEPT it

Accepted Answer

A)   increases employee satisfaction.
B)   decreases the financial performance of companies.
C)   improves decision making.
D)   is highly beneficial to the financial performance of companies.
E)   must be balanced to support and protect various stakeholders.F) B) and C)
G) B) and E)

Question 6

The focus of all marketing activities is the successful transformation of resources into goods and services.

Accepted Answer

A) True 
 B)False

Question 7

Talia is the owner of a small business. She has an HR person, an operations manager, a marketing manager, and a sales manager on staff. Who is responsible for the financial decisions that arise in the course of business?

Accepted Answer

A)   the HR person
B)   the operations manager
C)   the sales manager
D)   the marketing manager
E)   Talia, the ownerF) D) and E)
G) A) and C)

Question 8

If a country balances the money it spends for social, defense, and other programs with the amount of money it takes in from taxes, this country

Accepted Answer

A)   will not have a budget deficit.
B)   will increase its national debt.
C)   will have a budget surplus.
D)   will have a trade imbalance.
E)   will slip into a recession.F) A) and D)
G) A) and E)

Question 9

Which of the following is an intangible resource?

Accepted Answer

A)   physical and mental abilities of people
B)   forests and minerals
C)   economic capital
D)   financial assets
E)   company reputationF) B) and D)
G) C) and D)

Question 10

Differentiate between communist, socialist, and capitalist economic systems.

Accepted Answer

Karl Marx (1818-1883) first described communism as a society in which the people, without regard to class, own all the nation's resources. In his ideal political-economic system, everyone contributes according to ability and receives benefits according to need. In a communist economy, the people (through the government) own and operate all businesses and factors of production. Central government planning determines what goods and services satisfy citizens' needs, how the goods and services are produced, and how they are distributed. No true communist economy, however, exists today that satisfies Marx's ideal. Socialism is an economic system in which the government owns and operates basic industries-postal service, utilities, transportation, health care, and banking, and some manufacturing-but individuals own most businesses. Central planning determines what basic goods and services are produced, how they are produced, and how they are distributed, while individuals and small businesses provide other goods and services based on consumer demand and the availability of resources. Citizens are dependent on the government for many goods and services. Capitalism, or free enterprise, is an economic system in which individuals own and operate the majority of businesses that provide goods and services. Competition, supply, and demand determine which goods and services are produced, how they are produced, and how they are distributed.

Question 11

All of the following are true of entrepreneurs EXCEPT

Accepted Answer

A)   in the past, entrepreneurs were inventors who brought all the factors of production together to produce a new product.
B)   many of the companies started by early entrepreneurs have failed to stay in operation.
C)   a free-enterprise system provides the conditions necessary for entrepreneurs to succeed.
D)   many of the companies started by early entrepreneurs still operate today.
E)   entrepreneurs constantly change American business practices with new technology and innovative management techniques.F) A) and B)
G) B) and E)

Question 12

Economics refers to all activities concerned with obtaining money and using it effectively.

Accepted Answer

A) True 
 B)False

Question 13

Contractions of the economy lead to

Accepted Answer

A)   inflation.
B)   recession.
C)   rising levels of employment.
D)   an increase in production.
E)   an increase in income.F) B) and E)
G) C) and E)

Question 14

What is the primary goal of all businesses? Does a nonprofit organization fit within this goal?

Accepted Answer

The primary goal of all businesses is to...

Question 15

All of these statements are true of the U.S. national debt EXCEPT

Accepted Answer

A)   massive government stimulus spending during the most recent recession increased the national debt.
B)   it is difficult to increase taxes and reduce the deficit because Americans don't want their taxes increased and Congress has difficulty agreeing on appropriate tax rates.
C)   the national debt in the United States continues to grow at record levels.
D)   the recently enacted tax cuts in the United States are projected to decrease the national debt significantly over the next 10 years.
E)   to reduce the debt, the government has to increase its revenues or reduce spending on social, defense, and legal programs.F) B) and E)
G) B) and D)

Question 16

Leon is an accountant for a small company. As such, he participates primarily in ________ activities.

Accepted Answer

A)   management
B)   financial
C)   operations
D)   marketing
E)   advertisingF) C) and E)
G) B) and C)

Question 17

Ronan works for a custom furniture manufacturer. His job is to oversee the process of taking raw materials-lumber, fabric, and metal components-and ensure that they are transformed to the customer's exact specifications. Ronan's job falls under the business activity known as

Accepted Answer

A)   operations.
B)   advertising.
C)   sales promotion.
D)   finance.
E)   marketing.F) A) and C)
G) B) and E) A

Question 18

While ethical behavior can enhance a company's reputation, it often has a negative effect on the company's financial performance.

Accepted Answer

A) True 
 B)False

Question 19

All economic systems must address three important issues, one of which is how the goods and services will be produced.

Accepted Answer

A) True 
 B)False

Question 20

________ is an example of a product of monopolistic competition.

Accepted Answer

A)   Cotton
B)   Wheat
C)   Aspirin
D)   Electricity
E)   Airline faresF) B) and D)
G) A) and B)

Exam 1: The Dynamics of Business and Economics

Ramona is living on a fixed income since her retirement. She is worried that the economy is expanding too rapidly, which could result in

Correct Answer
verified

Who subscribes to the ideals of a communist economy as proposed by Karl Marx?

Correct Answer
verified

Quentin owns a company that makes metal and wooden signs. In order to acquire the different kinds of wood and steel he needs to make his product, Quentin needs

Correct Answer
verified
C

What would hinder business activity as it relates to an open economy?

Correct Answer
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All of the following are true of workplace diversity EXCEPT it

Correct Answer
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The focus of all marketing activities is the successful transformation of resources into goods and services.

Correct Answer
verified

Talia is the owner of a small business. She has an HR person, an operations manager, a marketing manager, and a sales manager on staff. Who is responsible for the financial decisions that arise in the course of business?

Correct Answer
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If a country balances the money it spends for social, defense, and other programs with the amount of money it takes in from taxes, this country

Correct Answer
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Which of the following is an intangible resource?

Correct Answer
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Differentiate between communist, socialist, and capitalist economic systems.

All of the following are true of entrepreneurs EXCEPT

Correct Answer
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Economics refers to all activities concerned with obtaining money and using it effectively.

Correct Answer
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Contractions of the economy lead to

Correct Answer
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What is the primary goal of all businesses? Does a nonprofit organization fit within this goal?

Correct Answer
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The primary goal of all businesses is to...
View Answer

All of these statements are true of the U.S. national debt EXCEPT

Correct Answer
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Leon is an accountant for a small company. As such, he participates primarily in ________ activities.

Correct Answer
verified

Ronan works for a custom furniture manufacturer. His job is to oversee the process of taking raw materials-lumber, fabric, and metal components-and ensure that they are transformed to the customer's exact specifications. Ronan's job falls under the business activity known as

Correct Answer
verified
A

While ethical behavior can enhance a company's reputation, it often has a negative effect on the company's financial performance.

Correct Answer
verified

All economic systems must address three important issues, one of which is how the goods and services will be produced.

Correct Answer
verified

________ is an example of a product of monopolistic competition.

Correct Answer
verified

Exam 1: The Dynamics of Business and Economics

Ramona is living on a fixed income since her retirement. She is worried that the economy is expanding too rapidly, which could result in

Correct AnswerverifiedShow Answer

Who subscribes to the ideals of a communist economy as proposed by Karl Marx?

Correct AnswerverifiedShow Answer

Quentin owns a company that makes metal and wooden signs. In order to acquire the different kinds of wood and steel he needs to make his product, Quentin needs

Correct AnswerverifiedC

What would hinder business activity as it relates to an open economy?

Correct AnswerverifiedShow Answer

All of the following are true of workplace diversity EXCEPT it

Correct AnswerverifiedShow Answer

The focus of all marketing activities is the successful transformation of resources into goods and services.

Correct AnswerverifiedShow Answer

Talia is the owner of a small business. She has an HR person, an operations manager, a marketing manager, and a sales manager on staff. Who is responsible for the financial decisions that arise in the course of business?

Correct AnswerverifiedShow Answer

If a country balances the money it spends for social, defense, and other programs with the amount of money it takes in from taxes, this country

Correct AnswerverifiedShow Answer

Which of the following is an intangible resource?

Correct AnswerverifiedShow Answer

Differentiate between communist, socialist, and capitalist economic systems.

All of the following are true of entrepreneurs EXCEPT

Correct AnswerverifiedShow Answer

Economics refers to all activities concerned with obtaining money and using it effectively.

Correct AnswerverifiedShow Answer

Contractions of the economy lead to

Correct AnswerverifiedShow Answer

What is the primary goal of all businesses? Does a nonprofit organization fit within this goal?

Correct AnswerverifiedThe primary goal of all businesses is to...View AnswerShow Answer

All of these statements are true of the U.S. national debt EXCEPT

Correct AnswerverifiedShow Answer

Leon is an accountant for a small company. As such, he participates primarily in ________ activities.

Correct AnswerverifiedShow Answer

Ronan works for a custom furniture manufacturer. His job is to oversee the process of taking raw materials-lumber, fabric, and metal components-and ensure that they are transformed to the customer's exact specifications. Ronan's job falls under the business activity known as

Correct AnswerverifiedA

While ethical behavior can enhance a company's reputation, it often has a negative effect on the company's financial performance.

Correct AnswerverifiedShow Answer

All economic systems must address three important issues, one of which is how the goods and services will be produced.

Correct AnswerverifiedShow Answer

________ is an example of a product of monopolistic competition.

Correct AnswerverifiedShow Answer

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C

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The primary goal of all businesses is to...
View Answer

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A

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