Question 1

Gross domestic product is a loose,subjective measure of how well a society can satisfy its people through goods and services.

Accepted Answer

A) True 
 B)False

Question 2

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees.

Accepted Answer

A) True 
 B)False

Question 3

How does a monopoly have complete control over the price of its product?

Accepted Answer

A monopoly has some control over the pri...

Question 4

The factors of production include natural resources,labor,government assistance,and entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 5

Fewer workers producing more goods and services can lead to higher overall employment rates.

Accepted Answer

A) True 
 B)False

Question 6

A legal monopoly is often referred to as a natural monopoly.

Accepted Answer

A) True 
 B)False

Question 7

Marcus sells washing machines from his store on a main street in his city.He normally sells ten washing machines a month.He has been considering ways to improve his sales and has improved his advertising,his store signage,and utilizes social media to contact potential buyers in the most likely demographic group,but has only improved sales by one washing machine a month.This month he decided that if he has three times more washing machines in his store and sells them at the same price he is now offering them,he will sell three times more washing machines.What is the fundamental flaw in his plan?

Accepted Answer

A)   Buyers are rational people and the demand for the product will only increase if the price is set at a higher level than it now is
B)   In order to sell more washing machines he will have to raise the price per washing machine.
C)   Demand for a product is not necessarily increased just because there is a greater supply,in addition,based on his sales,he has no doubt reached the equilibrium price.
D)   The supply of a particular product is the quantity of the product that producers are willing to sell at each of various prices.Producers offer more of a product for sale at higher prices and offer less of the product at lower prices therefore,to reach his sales goal,he needs to raise the price.E) None of the above
F) B) and C)

Question 8

One of Samuel Slater's contributions to the development of American business was the use of

Accepted Answer

A)   capital.
B)   flexible manufacturing.
C)   domestic robots.
D)   the factory system.
E)   the domestic system.F) A) and B)
G) B) and D)

Question 9

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

Accepted Answer

A)   Individuals are selected to fill certain positions within the economy of their nation according to the needs of the nation as a whole.
B)   Markets are carefully regulated to ensure that all individuals within a nation are treated fairly and charged standardized prices.
C)   A country only has a limited amount of space for college students and uses a type of lottery system to determine who gets these spaces.
D)   Government scarcely exists in this country,and transactions are based on a system of barter,or trading goods,for other goods.
E)   Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.F) B) and D)
G) A) and B)

Question 10

Economics is the study of how wealth is created and distributed.

Accepted Answer

A) True 
 B)False

Question 11

When a business distributes profits to business owners,these profits become household income and are removed from the circular flow of the economy.

Accepted Answer

A) True 
 B)False

Question 12

For a business,stakeholders represent

Accepted Answer

A)   investors in the business.
B)   lenders that have provided loans.
C)   suppliers that have extended credit to the firm in search of profit for the firm..
D)   employees who work for the firm.
E)   all of the different people or groups who are affected by the business.F) A) and E)
G) B) and C)

Question 13

____ resources include the funds needed to pay wages,purchase raw materials,and operate a business.

Accepted Answer

A)   Human
B)   Financial
C)   Informational
D)   Labor
E)   MaterialF) C) and D)
G) A) and E)

Question 14

Profit is the payment business owners receive for assuming the risks of ownership.

Accepted Answer

A) True 
 B)False

Question 15

The ultimate goal of every business firm should be to satisfy the needs of its customers.

Accepted Answer

A) True 
 B)False

Question 16

Macroeconomists often study the effect of taxes,government spending,interest rates,and similar factors on a nation's economy.

Accepted Answer

A) True 
 B)False

Question 17

A local retailer calls its customers when it receives merchandise that they may be interested in,provides individual service to each customer,provides forms and phone numbers for complaints and comments,and has a 100 percent satisfaction guarantee.Which objective is this business working hard to accomplish?

Accepted Answer

A)   Making a profit
B)   Achieving low employee turnover
C)   Satisfying the needs of its customers
D)   Increasing the owner's wealth
E)   Keeping up with the current technologyF) A) and D)
G) All of the above

Question 18

What effect did the Industrial Revolution and the golden age of invention have on the development of American business?

Accepted Answer

In the late 1700s,the factory system of ...

Question 19

France,a socialist economy,does not have which of the following goals?

Accepted Answer

A)   Equitable distribution of income
B)   Elimination of poverty
C)   Reduction of government regulations
D)   Elimination of economic waste
E)   Distribution of social services to all who need themF) C) and E)
G) A) and B)

Question 20

The government uses taxes to purchase resources and products required to provide services.

Accepted Answer

A) True 
 B)False

Exam 1: Exploring the World of Business and Economics

____ resources include the funds needed to pay wages,purchase raw materials,and operate a business.

Correct Answer
verified

The factors of production include natural resources,labor,government assistance,and entrepreneurship.

Correct Answer
verified

The government uses taxes to purchase resources and products required to provide services.

Correct Answer
verified

One of Samuel Slater's contributions to the development of American business was the use of

Correct Answer
verified

When a business distributes profits to business owners,these profits become household income and are removed from the circular flow of the economy.

Correct Answer
verified

How does a monopoly have complete control over the price of its product?

Correct Answer
verified
A monopoly has some control over the pri...
View Answer

Profit is the payment business owners receive for assuming the risks of ownership.

Correct Answer
verified

France,a socialist economy,does not have which of the following goals?

Correct Answer
verified

Correct Answer
verified

A legal monopoly is often referred to as a natural monopoly.

Correct Answer
verified

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees.

Correct Answer
verified

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

Correct Answer
verified

Gross domestic product is a loose,subjective measure of how well a society can satisfy its people through goods and services.

Correct Answer
verified

What effect did the Industrial Revolution and the golden age of invention have on the development of American business?

Correct Answer
verified
In the late 1700s,the factory system of ...
View Answer

Fewer workers producing more goods and services can lead to higher overall employment rates.

Correct Answer
verified

Correct Answer
verified

Economics is the study of how wealth is created and distributed.

Correct Answer
verified

Macroeconomists often study the effect of taxes,government spending,interest rates,and similar factors on a nation's economy.

Correct Answer
verified

For a business,stakeholders represent

Correct Answer
verified

The ultimate goal of every business firm should be to satisfy the needs of its customers.

Correct Answer
verified

Exam 1: Exploring the World of Business and Economics

____ resources include the funds needed to pay wages,purchase raw materials,and operate a business.

Correct AnswerverifiedShow Answer

The factors of production include natural resources,labor,government assistance,and entrepreneurship.

Correct AnswerverifiedShow Answer

The government uses taxes to purchase resources and products required to provide services.

Correct AnswerverifiedShow Answer

One of Samuel Slater's contributions to the development of American business was the use of

Correct AnswerverifiedShow Answer

When a business distributes profits to business owners,these profits become household income and are removed from the circular flow of the economy.

Correct AnswerverifiedShow Answer

How does a monopoly have complete control over the price of its product?

Correct AnswerverifiedA monopoly has some control over the pri...View AnswerShow Answer

Profit is the payment business owners receive for assuming the risks of ownership.

Correct AnswerverifiedShow Answer

France,a socialist economy,does not have which of the following goals?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A legal monopoly is often referred to as a natural monopoly.

Correct AnswerverifiedShow Answer

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees.

Correct AnswerverifiedShow Answer

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

Correct AnswerverifiedShow Answer

Gross domestic product is a loose,subjective measure of how well a society can satisfy its people through goods and services.

Correct AnswerverifiedShow Answer

What effect did the Industrial Revolution and the golden age of invention have on the development of American business?

Correct AnswerverifiedIn the late 1700s,the factory system of ...View AnswerShow Answer

Fewer workers producing more goods and services can lead to higher overall employment rates.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economics is the study of how wealth is created and distributed.

Correct AnswerverifiedShow Answer

Macroeconomists often study the effect of taxes,government spending,interest rates,and similar factors on a nation's economy.

Correct AnswerverifiedShow Answer

For a business,stakeholders represent

Correct AnswerverifiedShow Answer

The ultimate goal of every business firm should be to satisfy the needs of its customers.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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
verified
A monopoly has some control over the pri...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the late 1700s,the factory system of ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified