Business enterprise BUS 1750
companies trade database information so they
-can send you direct mail advertising products you are likely to want -know what customers buy and from whom
in a free market economy, as the price of a product increases, so will the amount supplied. Why?
-high prices lead to increased revenues, which allows firms to buy more raw materials and employ more workers -high prices lead to high profits, attracting new firms to the market.
The richest demographic in the United States is comprised of people between the ages of
65 and 74
The first economist to describe the process that turns self-directed gain into social and economic benefits for all was
Adam smith
Which of the following statements regarding diversity is TRUE?
Diversity affects companies in both the marketplace and the workplace.
Monetary policy is one of the tools used to stabilize the economy. Monetary policy is implemented by
Federal Reserve Bank
the total value of final goods and services produced in a country in a given year is called:
GDP
What is one of the most significant changes in the marketplace today?
It has become increasingly diverse.
Who is known for putting forth communism as a political ideology?
Karl Marx
Wayne owns a manufacturing company headquartered in the U.S. He is considering building a manufacturing plant in an Eastern European country to better serve customers in that market. He is carefully analyzing the laws in that country to ensure that the government cannot seize his plant without notice or reason. This best demonstrates his understanding of which basic right of capitalism?
The right to own private property
Which of the following created the name "dismal science" to refer to economics?
Thomas Carlyle
When they first came onto the marketplace, high-quality Blu-ray disks were offered by both Netflix and Blockbuster. Over time, however, Blockbuster lost significant market share to Netflix. This is an example of how
a quality of a product by itself is no longer a guarantee of a company's success
Jessica has a successful career working for a prestigious Fortune 500 company. However, she has decided to risk the security of her current job and open a small consulting business specializing in marketing. A person who risks time and money to start and manage a business is called
an entrepreneur
when the government spends money on such projects as roads and bridges, it is expected that the money will trickle down to the consumers eventually leading to:
an increase in consumer spending
The most likely outcome of global business expansion and an increase in U.S. global trade is
an overall increase in jobs.
Johanna, an Austrian citizen, is graduating from a U.S. medical school. She knows she will have to pay a much higher percentage of her income in taxes if she practices medicine in Austria, so she decides to remain in the U.S. after graduation and become a U.S. citizen. This is an example of ________ in Austria
brain drain
Claudio bought a powerful gaming computer over the Internet. In order to take advantage of a 10% discount on his purchase, he also opened an online account. This is just one example of how technology makes it easy for companies to
build a customer database
_______ is defined as any activity that seeks to provide goods and services to others with the goal of earning a profit.
business
The terms "boom," "recession," "depression," and "recovery" refer to the four long-term phases of the
business cycle
A property management firm in Iowa purchases commercial cleaning supplies online from a manufacturer in Ohio. This transaction is a _______ sale.
business-to-business (B2B)
The economic system that has led to the prosperity of most developed economies is
capitalism
Hugo loves in a country where individuals own all or most of the factors of production. clearly Hugo lives in a ________ country.
capitalist
The movement of the temperature of the planet up or down over time is referred to as
climate change
the economic system in which the government largely determines what products get produced, who gets them, and how the economy grows is called a :
command economy
The socioeconomic structure in which all factors of production, both human and non-human, are owned by the government, and the government establishes rules for production and consumption is known as
communism
when the government makes almost all economic decisions and owns almost all the major factors of production, the country is considered to be under the political system called
communism
All of the following are elements of the economic and legal environment EXCEPT
demographic changes of the population
The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income is referred to as
demography
Each year, the World Bank publishes a "Doing Business" report in which economies are ranked on their ease of doing business. Two criteria the World Bank takes into consideration when ranking economies are the ease of obtaining credit and the government's enforcement of contracts. These criteria relate to the
economic and legal environment
___________ is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
economics
Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests is called
empowerment
Janet was given the authority by her manager to handle customer requests as she saw fit and was allowed to make decisions to quickly respond to customer complaints. This is an example of
empowerment
Many countries have clear laws that protect businesses and minimize corruption. However, the country's government must also
enforcing existing laws
Tom Lennon is in the business of providing entertainment for many audiences. Tom is self-employed and therefore, is considered to be a(n)
entrepreneur
Which of the following is one of the most important factors of production?
entrepreneurship
You are employed as a consultant by the prime minister of a developing nation to research ways of creating wealth in the nation. What two factors of production do you suggest to him will play the most crucial role in this mission?
entrepreneurship and knowledge
one of the best ways for a company to achieve a competitive edge is to
exceed customer expectations
The purposes of nonprofit organizations include:
filling societal need ; filling an educational need
During the latest economic downturn, the government decided to increase government spending, hoping this would create jobs and jumpstart the economy. This was an example of _______ policy
fiscal
Mr. Hansen wanted to update his motel's washers and dryers with greener, more energy-efficient ones, but the cost seemed too high. However, when he learned that the government was trying to stimulate the economy by offering tax cuts for "greener investments," he purchased the equipment. These tax cuts are part of the government's
fiscal policy
A _______ economy corresponds to capitalism, whereas a _______ economy corresponds to socialism or communism.
free-market; command
Fiscal policy is the federal government's effort to keep the economy stable my increasing or decreasing:
government spending and taxes
The major benefit of socialism is
greater social equality
The development of business strategies that go beyond regulation and demonstrate a commitment to saving energy, reducing a business's carbon footprint and producing environmentally-friendly products is known as
greening
The total value of final goods and services produced in a country in a given year is called
gross domestic product
competition in the market place
have never been greater that it is today
While considering doing business in a developing nation, John carefully researches the local business environment. Which of the following factors would deter John from establishing operations in this nation?
high corruption in the legal system
The economic concept of supply maintains that, generally speaking, the quantity of products or services offered by sellers _______ as the price _______.
increases ; increases
One way in which technology affects the business environment negatively is by
increasing the possibility of large-scale identity theft.
We are entering a new era of business that will alter all sectors of the economy. This era focuses on ________.
information-based industries
one way to differentiate between goods and services is that services such as education, insurance and tourism are_____________, while goods such as automobiles are tangible.
intangible
Monetary policy is based on the management of the money supply and
interest rates
The _______ is another name for the theory that peoples' efforts to improve their own situations in life also help the economy grow and prosper.
invisible hand
according to Adam Smith, the process that turns self-directed gain into and social and economic benefits for all is the
invisible hand
The Uniform Commercial Code is important to businesses in the United States because:
it makes business agreements such contracts enforceable by law
among the benefits businesses provide to their communities are:
jobs; goods and services; tax payments
When studying the operation of a nation's economy as a whole, one is said to be taking a(n) _____ view
macroeconomic
The branch of economics that examines the economy as a whole is called
macroeconomics
studying the economic behavior of individual people and organizations in markets for particular products or services is____________
microeconomics
The trend of most countries today is toward a(n) _______ economy
mixed
Economic systems in which some allocation of resources is made by the market and some by the government are called
mixed economies
The two primary tools that the government can use to stabilize the economy are
monetary and fiscal policy
The market structure in which there are a large number of sellers that provide similar—but not identical—products is called
monopolistic competition.
organizations such as the Red Cross, public school systems, and the United Way are examples of ___________ organizations.
nonprofit
When a company contracts with another, sometimes in another country, to do some of its functions, such as production or accounting, it is known as ______________
outsourcing
when a company contracts with other companies, sometimes in another country, to do some or all of its functions, it is called
outsourcing ; contracting
Ultimately, one of the best conditions for global business growth is _______, because it encourages greater trade and the emergence of new markets.
peace
Entrepreneurs take risks. What risk did Tom take to become a successful entrepreneur?
possible failure
The amount of output you generate given the amount of input, such as the number of hours you work is called
productivity
The growth of the segment of the population known as Seniors, which has more wealth than other in the US, offers many opportunities for new
products and services
The best benefit of increased global trade is that it
provides people in foreign territories with new jobs.
Which of the following is NOT a benefit of a mixed economy?
public ownership of business
As an economist, Julia watches the evolution of the gross domestic product. She observes that the GDP has decreased over the past few quarters. She believes this means that the economy is experiencing a
recession
In a ____________, prices fall, people purchase fewer products, and businesses fail for two or more consecutive quarters.
recession
The study of how to increase resources and to create the conditions that will make better use of those resources is called
resource development
the study of how to increase resources or create conditions that will make better use of them is
resource development
If a country's government wants to attract foreign investors, it should lower the _______ associated with starting a business.
risk
As an entrepreneur, Tom also works for other people. What benefit do entrepreneurs receive by working for others?
security of employment
An intangible product such as health care is a
service
Careers in law, healthcare, entertainment and financial services are part of the _________ sector.
service
the __________ sector generates about 80% of the value of the US economy
service
A situation when the economy is slowing but prices are going up anyway is called
stagflation
groups that have a strong interest in the success and outcomes of a business, such as employees, neighbors, or government regulators are called_____________
stakeholders
The amount of goods and services people can buy with the money they have is known as the
standard of living
The business environment that has changed the most in the past few decades is the _______environment.
technological
Much like Tom, entrepreneurs may experience a high degree of flexibility and opportunity. However, entrepreneurs are challenged by the demands of the business environment. Which of the following is NOT one of the five elements of the business environment that can either help or hinder the development of a business?
the financial environment
Mark works for a pharmaceutical company. One of the most important trends affecting his company is
the increase in the number of older citizens in the population.
One of the major reasons for the decrease in the need for agricultural workers was
the increased efficiency of agricultural workers.
In free markets, prices are determined by
the negotiation between buyers and sellers that takes place in the marketplace.
Price indexes such as the consumer price index (CPI) measure
the overall health of the economy.
If the price of a product were to go down, which of the following will most likely happen?
the quantity demanded will increase
in perfect competition:
there are many sellers productions appear to be identi
As a result of brain drain and less competition, socialist countries
trail capitalist countries in terms of inventions and innovation.
When supply and demand meet at the equilibrium point, prices in the market will
trend toward that price
the unemployment rate refers to the percentage of civilians at least 16 years of age who are
unemployed and tried to find a job within the prior four weeks
Which of the following is an advantage to being an entrepreneur ?
you keep all the profits
Which of the following is a disadvantage to owning and operating your own business?
your personal assets can be seized to pay off the business's debts