GBS151 Introduction to Business Lesson One Quiz (Rio Salado College)

In the context of the technological environment of a business, which of the following statements is true of e-commerce?

Business-to-business selling accounts for the vast majority of total e-commerce sales.

Which of the following statements is true of profit in a business?

It is the financial reward that comes from starting and running a business.

In the context of fundamental principles of a free market system, which of the following statements is true of a demand curve?

It shows the relationship between price and quantity from a customer standpoint.

In the context of fundamental principles of a free market system, which of the following statements is true of a supply curve?

It shows the relationship between price and quantity from a supplier standpoint.

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

The assembly line became standard across major manufacturing industries.

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

The balance of power shifted away from producers and toward consumers.

In the context of the history of American business, which of the following statements is true of the Industrial Revolution?

There was a loss of personal pride in the production process.

The controversial $700 billion economic bailout plan passed by Congress in early October 2008 was called the

Troubled Assets Relief Program.

In the context of monetary policy, when the economy is weak, the Federal Reserve

buys government securities on the open market.

In the context of the history of American business, during the _____ era, jobs became more specialized, increasing productivity and lowering costs and prices.

production

In the context of monetary policy, the Federal Reserve is most likely to reduce the discount rate during

recessions.

In the context of open market operations, when inflation is a concern, the Federal Reserve _____ government securities.

sells

The term _____ refers to the quantity of products that producers are willing to offer for sale at different market prices.

supply

In the context of a business environment, computers, telecommunications, and other digital tools are considered part of the

technological environment.

In the context of monetary policy, _____ is a rule set by the Federal Reserve that specifies the minimum amount of funds a bank must hold, expressed as a percentage of the bank's deposits.

the reserve requirement