FM 116 CH 1,2,6,7 quizqs

Which of the following is a reason why pure market economies are practically non-existent today?

A pure market economy will make insufficient provision for the old, the young, the sick, and the environment

Adrienne wants to be part of a nonprofit organization. Which of the following organizations should she choose?

A school that provides free education to the disabled, entirely funded by the government

Anya is an administrator at Zenorx Inc., a start-up software company. She is responsible for acquiring capital for the company. In the context of the various factors of production that businesses rely on, which of the following functions is most likely to be a part of Anya's responsibilities?

Acquiring synthetic resources like computers and telephones

Which of the following marketing concepts emerged during the marketing era?

A consumer focus that permeates successful companies in every department, at every level

In the context of evaluating economic performance, which of the following statements is true of productivity?

A low level of productivity tends to correlate with a stagnant economy

The periodic contraction and expansion that occur over time in virtually every economy is known as the _____

Business cycle

Which of the following statements best describes e-commerce?

Business transactions conducted online, typically via the Internet

Which of the following is most likely to be true of most American businesses today?

Businesses are focused on what the customer wants

In the context of the history of American business, which of the following statements is true of the marketing era?

Businesses began to develop brands to help customers understand the differences among various products

_____ is an economic system based on private ownership, economic freedom, and fair competition

Capitalism

Which of the following scenarios illustrates the utilization of human resources as a factor of production?

Carlos hires a content writer to develop content for his online portal that sells fashion accessories

Which of the following statements is true when a person makes a career choice based on what he or she loves doing?

Chances of personal success are boosted

In the context of the history of American business, which of the following is a feature of the relationship era?

Cultivating current customers turn out to be more profitable than constantly seeking new ones

Which of the following best describes sustainability in the context of ethics and social responsibilities of a business?

Doing business without harming the ability of future generations to meet their needs

In the context of the history of American business, which of the following statements is true of the industrial revolution?

Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks

_____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries

Free trade

The _____ is an international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.

General Agreement on Tariffs and Trade

_____ is the total value of all final goods and services produced within a nation's physical boundaries over a given period of time

Gross domestic product

Which of the following is a measure taken by socialist governments in moving toward free-market systems?

Incentivizing foreign investment

During the _____, as mass production took hold, huge factories replaced skilled artisan workshops

Industrial revolution

Which of the following statements is true of structural unemployment?

It encompasses people who don't have jobs because the economy no longer needs their skills

Which of the following is true of the reserve requirement?

It helps protect depositors who may want to withdraw their money without notice

In the context of the different degrees of competition, which of the following statements best describes pure competition?

It is a market structure with many competitors selling virtually identical products

Which of the following best defines a profit?

It is the money a business earns in sales minus the expenses

In a business, which of the following statements best describes profit?

It is the money that a business earns in sales, minus expenses

Which of the following statements is true of the World Trade Organization (WTO)?

It monitors the provisions of the General Agreement on Tariffs and Trade agreements

Conela is a nonprofit organization that renovates abandoned government schools and facilitates their functioning. It is headed by two social activists and is funded by the government. Which of the following statements is true of Conela?

It takes in revenue like any other business

In the context of factors of production that businesses and nonprofits rely on, which of the following can be classified as capital?

Machine

The Krakozhian fashion market has many brands that sell clothing. However, each brand sells clothing designed for different niches in the market. In this scenario, the market structure prevalent in the Krakozhian fashion market is _____

Monopolistic competition

_____ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain

Nonprofits

_____ involve buying and selling government securities, which include treasury bonds, notes, and bills

Open market operations

Which of the following is a disadvantage of socialist economic systems?

Potential entrepreneurs may migrate to countries that let them keep more of their profits

Which of the following statements is true of the fiscal policy of the United States?

The amount that the government can borrow is regulated by the debt ceiling

Which of the following statements is true about pure competition?

The barriers to entry faced by new competitors entering the market are quite low

_____ is the rate of interest that the Federal Reserve charges when it loans funds to banks

The discount rate

Which of the following areas concerns macroeconomics?

The employment rate in a country

In the context of monetary policy, which of the following statements is true of commercial banks?

They accept demand deposits and make loans for the public

In the context of the different degrees of competition, which of the following is a reason why monopolies are considered illegal?

They can harm the economy

In the context of factors of production, which of the following statements is true of entrepreneurial enterprises?

They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production

Which of the following statements is true of discount brokers?

They charge flat fees of a few dollars per trade for simple transactions

In the context of monetary policy, which of the following statements is true of open market operations?

They involve securities that the government issues to finance its deficit spending

In the context of the competitive environment, which of the following statements is true of bleeding-edge firms?

They launch products that fail because they are too far ahead of the market

Which of the following statements is true of entrepreneurs?

They produce a ripple effect that enriches everyone around them

In the context of the production era, the "hard sell" refers to the:

aggressive persuasion designed to separate consumers from their cash

The M2 money supply includes:

all of M1 plus saving accounts, money market accounts, and certificates of deposits

The right to fair competition is one of the fundamental rights of:

capitalism

In the context of factors of production that businesses and nonprofits rely on, _____ cannot be considered a natural resource

cereal crops

In the country of Harashimin, the Renxinzi government has adopted a political philosophy that strongly backs the labor class of the country. The government believes in exploiting its wealthy citizens to fulfill its agenda of bringing all the classes in the society to an equal standing. It is highly authoritarian in nature, which suspends the individual rights and choices of its people. In this scenario, the Renxinzi government has most likely adopted the political philosophy called _____

communism

In a free market system, _____ refers to the quantity of products that consumers are willing to buy at different market prices

demand

In the context of evaluating economic performance, productivity is calculated by:

dividing the amount of output by the amount of input

During the _____, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers

entrepreneurship era

When making a career choice, experts often advise graduating students to:

find a career they love as it will tend to be more rewarding

The term _____ refers to government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation

fiscal policy

During the _____ era, factories replaced previously abundant artisan workshops

industrial revolution

The debt ceiling is utilized by the Congress to:

limit the amount of money the government can borrow

In the context of fiscal policy, most economists agree that:

lower taxes can leave more money in people's pockets for them to spend or invest

In the context of mixed economies, pure market economies are practically nonexistent in today's world because they would:

not create enough value to support their people over the long term

The nation of Radonia recently approved the sale of its national railway service to a company called Dontsky Rail Corporation. The company has no association with the country's government and operates on its own terms. The sale of Radonia's national railway service to Dontsky Rail Corporation is an example of _____

privatization

The _____ is a measure of inflation that evaluates the change over time in the weighted-average wholesale values

producer price index

During the production era, in the early part of the 1900s, major businesses focused on:

refining the production process and creating greater efficiencies

The nation of Platinia provides its citizens with free healthcare and education services. The government of Platinia funds these programs through high taxation. In addition to these services, the government also runs utilities, telecommunications, and several other enterprises. The nation of Platinia exemplifies a _____

socialist economic system

In the context of planned economies, _____ tend to have higher taxes, which are designed to distribute wealth more evenly through the public

socialistic

The quality and quantity of goods and services available to a population is referred to as the _____.

standard of living

The United States does not have a pure market economy as:

the government owns a number of major enterprises

Businesses that strongly focus on customer satisfaction tend to:

transform their current customers into loyal advocates for themselves

The _____ is the percentage of people in the labor force over age 16 who do not have jobs and are actively seeking work

unemployment rate

In the context of the history of American business, which of the following statements is true of the relationship era?

Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business

_____ is an economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central government

Communism

Which of the following was a result of the collapse of financial institutions during the economic crisis in the United States?

Companies began to announce layoffs

_____ are four fundamental resources—natural resources, capital, human resources, and entrepreneurship—that both businesses and nonprofits rely on.

Factors of production

Which of following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?

Goods moved more freely than ever across international boundaries

Which of the following is true of gross domestic product?

It ignores legal goods that are not reported to avoid taxation

In the context of the technological environment, which of the following statements is true of business technology?

It includes any tools that companies can use to become more efficient and effective

Which of the following statements best describes a budget surplus?

It is the overage that occurs when the government's revenues are higher than expenses over a given period of time

Which of the following statements best describes a budget deficit?

It is the shortfall that occurs when expenses are higher than revenue over a given period of time

Which of the following best defines economics?

It is the study of the choices that people, companies, and governments make in allocating society's resources

Which of the following statements best describes federal debt?

It is the sum of all the money the federal government has borrowed over the years and not yet repaid

Which of the following statements is true of the fiscal cliff?

It was a package of draconian across-the-board spending cuts

Drenexa Pharmaceuticals is based in the United States. In the context of the social environment, which of the following is most likely to be an impact of the rapidly aging population on Drenexa Pharmaceuticals?

It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom

In the context of the history of American business, which of the following statements is true of the production era?

Jobs became specialized, increasing productivity and lowering costs and prices

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

Large-scale entrepreneurs emerged in the second half of the 1800s, building business empires

In the context of a business environment, which of the following is a key element of the U.S. economic environment?

Legislation that supports enforceable contracts

In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources?

Most of them must be extracted, purified, or harnessed

Which of the following is a difference between the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act?

TARP was a $700 billion economic bailout plan, whereas the American Recovery and Reinvestment Act was an $825 billion economic stimulus package

Which of the following is a difference between the Troubled Assets Relief Program and the American Recovery and Reinvestment Act?

The Troubled Assets Relief Program was a bailout package, whereas the American Recovery and Reinvestment Act was a stimulus package

Which of the following statements is true about a country's fiscal policy?

The amount that the government can spend is regulated by the debt ceiling

Which of the following is a key dimension of the business environment?

The economic environment

In the context of the social environment of the United States, which of the following statements is true of diversity?

The growth in ethnic populations offers robust profit potential for firms pursuing them

Which of the following statements is true of a capitalist country?

The private sector owns a vast majority of enterprises in the country

In the context of the U.S. economic environment, which of the following is a government policy that supports business?

The relatively low federal tax rate

Which of the following statements is true of capitalism?

The vast majority of enterprises are privately owned by businesses

Which of the following was a reason for the collapse of financial institutions during the economic crisis in the United States?

There was a drop in mortgage values

Which of the following statements is true about subprime mortgage loans?

They provide high returns on investments

In the context of the global economic crisis, which of the following statements is true of subprime loans?

They provided a higher return than many other investments

In the context of the business cycle, _____ is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters

a recession

Jason set up a textile mill in his hometown in 1865. He became a rich businessman by the time his son Earl took over the business in 1895. Soon after Earl started heading the business, the government passed laws to regulate business and protect consumers and workers. Due to this move by the government, the textile mill had to introduce a fixed salary structure for its employees and implement quality checks for the products manufactured. In the context of the history of American business, Jason had set up this textile mill in the _____.

entrepreneurship era

Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when a customer places an order. The bakery produces a batch of products as per the customer's orders and gets them delivered to their homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____

equilibrium price

In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category, as competition becomes truly global

free-trade movement

The government of Sraznesia has increased the prices of all the commodities in the country, and this has led to country-wide protests. The situation worsens as the average prices increase more than 50% a month, resulting in more aggressive protests from the citizens. In the given scenario, this price rise will most likely lead to _____

hyperinflation

In the context of the global economic crisis, _____ are defined by experts as loans to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repay the money they borrow

subprime mortgage loans