Question 1

One of the four elements that are necessary for private enterprise to be carried out is reasonable prices.

Accepted Answer

A) True 
 B)False

Question 2

Economic indicators help to assess the performance of an economy.

Accepted Answer

A) True 
 B)False

Question 3

When gross domestic product increases, what is the outcome for economic growth?

Accepted Answer

A)   Aggregate output will increase.
B)   The nation will experience a slowdown in growth.
C)   Aggregate output will decrease.
D)   Growth will remain steady when compared to developing nations.
E)   Growth will decline based on the value of the national currency.F) C) and E)
G) B) and D)

Question 4

How can price be best determined?

Accepted Answer

The demand and supply schedule can be us...

Question 5

What type of policy is made up of fiscal and monetary policy?

Accepted Answer

A)   Trade
B)   Employment
C)   Stabilization
D)   Tax
E)   ForeignF) D) and E)
G) B) and D)

Question 6

What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?

Accepted Answer

A)   Human resources
B)   Working capital
C)   Physical resources
D)   Planned resources
E)   Market resourcesF) A) and C)
G) A) and B)

Question 7

Which of the following BEST gives the meaning of the term gross domestic product?

Accepted Answer

A)   Total quantity of goods and services produced by an economic system
B)   Total quantity of goods that a country's citizens can purchase with the currency used in their economic system
C)   Conditions of the economic system in which an organization operates
D)   Total value of all goods and services produced within a given period by a national economy through domestic factors of production
E)   Indicators of available goods and services produced within a specific domestic marketF) A) and E)
G) A) and D)

Question 8

Which economic system emphasizes the private ownership of most factors of production?

Accepted Answer

A)   Socialism
B)   Communism
C)   Capitalism
D)   Marxism
E)   FederalismF) C) and D)
G) A) and E)

Question 9

How does monopolistic competition differ from perfect competition?

Accepted Answer

A)   There are more sellers in a market characterized by monopolistic competition.
B)   It is easier for sellers to enter a market or industry characterized by monopolistic competition.
C)   In a perfectly competitive market, products are more dissimilar.
D)   In a market characterized by monopolistic competition, individual firms have some control over price.
E)   In a perfectly competitive market, the size of the firms must be large.F) B) and D)
G) C) and E)

Question 10

What are the benefits of business for society?

Accepted Answer

Businesses produce most of the goods and...

Question 11

Discuss the two forms of planned economies and give examples of each.

Accepted Answer

There are two basic forms of planned eco...

Question 12

The amount of money that a government owes its creditors is referred to as that country's

Accepted Answer

A)   GDP.
B)   national debt.
C)   consumer price index.
D)   inflation rate.
E)   GNP.F) C) and D)
G) A) and E)

Question 13

China functions as a communistic economy and political system.

Accepted Answer

A) True 
 B)False

Question 14

What is the primary force that determines what a firm buys and sells?

Accepted Answer

A)   Laws of supply and demand
B)   The demand and supply schedule
C)   Economic resources
D)   Equilibrium price
E)   The private enterprise systemF) A) and C)
G) All of the above

Question 15

Describe the role of information resources in business.

Accepted Answer

The production of tangible goods once do...

Question 16

What does productivity measure?

Accepted Answer

A)   The total value of all goods and services produced by a national economy
B)   How much a system produces with the resources needed to produce it
C)   How much output is necessary to produce a certain level of demand
D)   The standard of living relative to purchasing power parity
E)   How much gross national product results from inputs of laborF) A) and E)
G) A) and D)

Question 17

Why is it important to calculate purchasing power parity in the global market?

Accepted Answer

A)   It indicates how much consumers will pay for goods and services.
B)   It determines interest rates on short-term debt.
C)   It identifies how much the nominal GDP should be adjusted.
D)   It determines standards of living across the globe.
E)   It indicates the level of disposable income in developed nations.F) B) and D)
G) A) and D)

Question 18

What is the term used to describe a market condition where buyers are able to satisfy the demand of the consumer, yet have some product remain unsold?

Accepted Answer

A)   Surplus
B)   Stoppage
C)   Shortage
D)   Demand deficit
E)   Equilibrium priceF) B) and D)
G) D) and E)

Question 19

The pursuit of profits is how a business differs from organizations such as public universities, public hospitals, and government agencies.

Accepted Answer

A) True 
 B)False

Question 20

Economic systems differ in how factors of production are used.

Accepted Answer

A) True 
 B)False

Exam 1: The U.S. Business Environment

What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?

Correct AnswerverifiedShow Answer

Describe the role of information resources in business.

Correct AnswerverifiedThe production of tangible goods once do...View AnswerShow Answer

What is the primary force that determines what a firm buys and sells?

Correct AnswerverifiedShow Answer

When gross domestic product increases, what is the outcome for economic growth?

Correct AnswerverifiedShow Answer

Discuss the two forms of planned economies and give examples of each.

Correct AnswerverifiedThere are two basic forms of planned eco...View AnswerShow Answer

Economic indicators help to assess the performance of an economy.

Correct AnswerverifiedShow Answer

Which economic system emphasizes the private ownership of most factors of production?

Correct AnswerverifiedShow Answer

The amount of money that a government owes its creditors is referred to as that country's

Correct AnswerverifiedShow Answer

What does productivity measure?

Correct AnswerverifiedShow Answer

What type of policy is made up of fiscal and monetary policy?

Correct AnswerverifiedShow Answer

Which of the following BEST gives the meaning of the term gross domestic product?

Correct AnswerverifiedShow Answer

Why is it important to calculate purchasing power parity in the global market?

Correct AnswerverifiedShow Answer

How can price be best determined?

Correct AnswerverifiedThe demand and supply schedule can be us...View AnswerShow Answer

How does monopolistic competition differ from perfect competition?

Correct AnswerverifiedShow Answer

What are the benefits of business for society?

Correct AnswerverifiedBusinesses produce most of the goods and...View AnswerShow Answer

China functions as a communistic economy and political system.

Correct AnswerverifiedShow Answer

One of the four elements that are necessary for private enterprise to be carried out is reasonable prices.

Correct AnswerverifiedShow Answer

The pursuit of profits is how a business differs from organizations such as public universities, public hospitals, and government agencies.

Correct AnswerverifiedShow Answer

What is the term used to describe a market condition where buyers are able to satisfy the demand of the consumer, yet have some product remain unsold?

Correct AnswerverifiedShow Answer

Economic systems differ in how factors of production are used.

Correct AnswerverifiedShow Answer

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The production of tangible goods once do...
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There are two basic forms of planned eco...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The demand and supply schedule can be us...
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Correct Answer
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Correct Answer
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Businesses produce most of the goods and...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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