Question 1

Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

Accepted Answer

A)   Altered gross domestic product
B)   Gross domestic product
C)   Real gross domestic product
D)   Altered gross national product
E)   Gross national productF) A) and E)
G) C) and D)

Question 2

The government uses tax dollars to

Accepted Answer

A)   invest in foreign bonds.
B)   invest in foreign corporations.
C)   purchase resources and products needed to provide services.
D)   purchase other nations.
E)   increase consumer income.F) B) and E)
G) B) and C)

Question 3

When an individual chooses his or her ideal career,it is most likely a reflection of one's

Accepted Answer

A)   values.
B)   hobbies.
C)   skills.
D)   education.
E)   desire to be rich.F) None of the above
G) D) and E)

Question 4

In the early 1980s,Craig Anderson,a corporate finance manager,was faced with which of the following problems?

Accepted Answer

A)   High inflation rates
B)   Competition from e-business firms
C)   Too much productivity
D)   Declining interest rates
E)   A decline in the use of specializationF) A) and E)
G) B) and C)

Question 5

Gabby is passionate about soccer and decides to open her own soccer sporting goods store.She invests her money,time,and effort into making the store a success.Gabby can be best described as a(n)

Accepted Answer

A)   capitalist.
B)   laborer.
C)   corporate owner.
D)   entrepreneur.
E)   competitor.F) B) and C)
G) B) and D)

Question 6

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government.He does not like his job but is not allowed other options.Tim must purchase necessities for his family at fixed prices.The country Tim lives in can be described as a ____ economy.

Accepted Answer

A)   demand
B)   command
C)   market
D)   free-enterprise
E)   capitalistF) A) and B)
G) A) and E)

Question 7

Of the following,which is not considered a basic management function necessary to be an effective manager?

Accepted Answer

A)   Planning
B)   Organizing
C)   Leading and motivating
D)   Controlling
E)   SellingF) B) and D)
G) B) and E)

Question 8

Fluctuations in a nation's economy are referred to as its

Accepted Answer

A)   economic upheaval.
B)   inflation problem.
C)   depression cycle.
D)   business cycle.
E)   recession period.F) A) and C)
G) B) and C)

Question 9

Margaret has just completed college and is considering tactics to be employed in a profession that interests her,will permit her to use her abilities,allow her to grow,and will challenge her.She is not quite sure what steps to take to find a job that will fulfill these needs.Which of the following would be good steps to take to find a job that will meet Margaret's needs?

Accepted Answer

A)   Use online networking to begin to identify and join sites where she can connect with people who like the same sports and recreational activities she does.
B)   Use online networking and social media sites to locate job openings and help prospective employers find her.
C)   Review job openings in newspapers and magazines but give very little information about herself on online networking sites to prevent identity theft.
D)   Create one static online profile with few photographs and posts to communicate that she does not waste her time with social media but instead,devotes herself to work and school.E) A) and C)
F) None of the above

Question 10

The total dollar value of all goods and services produced by all people within the boundaries of a country is called

Accepted Answer

A)   productivity.
B)   gross domestic product.
C)   gross national product.
D)   inflation factor.
E)   standard of living.F) A) and C)
G) None of the above

Question 11

Which of the following is uncharacteristic of a socialist economy?

Accepted Answer

A)   All capital and capital goods are privately owned.
B)   The government owns and controls key industries.
C)   Land and raw materials may be the property of the state.
D)   What to produce and how to produce it are based on national goals.
E)   Distribution of goods and services is controlled by the state.F) A) and E)
G) A) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product.

Accepted Answer

A) True 
 B)False

Question 14

The Miller family owns and operates an interior decorating business.Henry installs hardwood floors and chair rails;Chloe reupholsters furniture and takes care of the finances;Charles designs and makes draperies and pillows;and Mary coordinates the overall color,look,and design.The process the Miller family uses to run its business is

Accepted Answer

A)   specialization.
B)   division of service.
C)   the factory system.
D)   the domestic system.
E)   the barter system.F) A) and B)
G) A) and C)

Question 15

A market economy is sometimes referred to as a command economy.

Accepted Answer

A) True 
 B)False

Question 16

Karl Marx is known as the father of communism.

Accepted Answer

A) True 
 B)False

Question 17

Adam Smith is the person who actually organized American business as we know it today.

Accepted Answer

A) True 
 B)False

Question 18

Sony is most correctly classified as a marketing intermediary type of business.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a feature of laissez faire capitalism?

Accepted Answer

A)   Competition
B)   Guaranteed income
C)   Private ownership of wealth
D)   Economic freedom
E)   Limited role of governmentF) B) and D)
G) A) and B)

Question 20

Sherry Garcia begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business.Is Sherry correct?

Accepted Answer

A)   Yes,by putting this money into a savings account,only she has access to the funds and they are no longer available to the circular flow.
B)   No,even though she has saved this money,the bank will in turn invest the money back into the circular flow.
C)   Yes,only direct investments into companies,such as purchasing ownership shares of that company,will put her savings back into the circular flow.
D)   Yes,the circular flow focuses on businesses and government,and therefore Gail's savings have no impact on the circular flow.
E)   No,because she earned this money from a company and because she paid taxes on it,it is always considered part of the flow.F) A) and E)
G) B) and E)

Exam 1: Exploring the World of Business and Economics

When an individual chooses his or her ideal career,it is most likely a reflection of one's

Correct Answer
verified

Adam Smith is the person who actually organized American business as we know it today.

Correct Answer
verified

Karl Marx is known as the father of communism.

Correct Answer
verified

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government.He does not like his job but is not allowed other options.Tim must purchase necessities for his family at fixed prices.The country Tim lives in can be described as a ____ economy.

Correct Answer
verified

Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product.

Correct Answer
verified

Which of the following is uncharacteristic of a socialist economy?

Correct Answer
verified

In the early 1980s,Craig Anderson,a corporate finance manager,was faced with which of the following problems?

Correct Answer
verified

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

Correct Answer
verified

A market economy is sometimes referred to as a command economy.

Correct Answer
verified

Fluctuations in a nation's economy are referred to as its

Correct Answer
verified

Correct Answer
verified

The total dollar value of all goods and services produced by all people within the boundaries of a country is called

Correct Answer
verified

Of the following,which is not considered a basic management function necessary to be an effective manager?

Correct Answer
verified

Which of the following is not a feature of laissez faire capitalism?

Correct Answer
verified

Correct Answer
verified

Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

Correct Answer
verified

The government uses tax dollars to

Correct Answer
verified

Gabby is passionate about soccer and decides to open her own soccer sporting goods store.She invests her money,time,and effort into making the store a success.Gabby can be best described as a(n)

Correct Answer
verified

Sony is most correctly classified as a marketing intermediary type of business.

Correct Answer
verified

Sherry Garcia begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business.Is Sherry correct?

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

When an individual chooses his or her ideal career,it is most likely a reflection of one's

Correct AnswerverifiedShow Answer

Adam Smith is the person who actually organized American business as we know it today.

Correct AnswerverifiedShow Answer

Karl Marx is known as the father of communism.

Correct AnswerverifiedShow Answer

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government.He does not like his job but is not allowed other options.Tim must purchase necessities for his family at fixed prices.The country Tim lives in can be described as a ____ economy.

Correct AnswerverifiedShow Answer

Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product.

Correct AnswerverifiedShow Answer

Which of the following is uncharacteristic of a socialist economy?

Correct AnswerverifiedShow Answer

In the early 1980s,Craig Anderson,a corporate finance manager,was faced with which of the following problems?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A market economy is sometimes referred to as a command economy.

Correct AnswerverifiedShow Answer

Fluctuations in a nation's economy are referred to as its

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The total dollar value of all goods and services produced by all people within the boundaries of a country is called

Correct AnswerverifiedShow Answer

Of the following,which is not considered a basic management function necessary to be an effective manager?

Correct AnswerverifiedShow Answer

Which of the following is not a feature of laissez faire capitalism?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

Correct AnswerverifiedShow Answer

The government uses tax dollars to

Correct AnswerverifiedShow Answer

Gabby is passionate about soccer and decides to open her own soccer sporting goods store.She invests her money,time,and effort into making the store a success.Gabby can be best described as a(n)

Correct AnswerverifiedShow Answer

Sony is most correctly classified as a marketing intermediary type of business.

Correct AnswerverifiedShow Answer

Sherry Garcia begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business.Is Sherry correct?

Correct AnswerverifiedShow Answer

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