Intro to business ch.1 quiz study guide

The unemployment rate is the percentage of the total work force that is not working but is:

Actively looking for work

Which of the following is an example of a demographic factor?

Age/race/gender etc.

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing.

Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?

Social change

The government of Cuba owns or controls all of the basic industries in their economy. Cuba operates in which type of economic system?

Socialism

For the past ten years, Lou Lopez has been a welder for Ford Motor Company. This morning her boss informed her a robot would replace her. Lopez's unemployment is an example of _____ unemployment.

Structural

Which of the following is the BEST example of a not-for-profit business?

The American Cancer society

Which of the following factors would most likely result in a shift in the supply curve?

an increase in the price of raw materials used in the production process

Members of millennial generation:

are not accurately described by any of the above

A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

federal budget deficit

When the government decides to cut military spending, it is implementing a(n) _____ policy.

fiscal

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

The key element in socialism is:

governmental control

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

oligopoly

In a(n) _____, a few sellers can exert substantial control over prices.

oligopoly

The _____ measures prices paid by producers and wholesalers for commodities, including raw materials and finished products.

producer price index

The main incentive in capitalism is:

profit

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?

$125

Which of the following is a characteristic of pure competition?

A very large number of small firms

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided

Communist economic system

_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.

Cost-push

_____is the situation that occurs when government spending replaces spending by the private sector.

Crowding Out

The Department of Natural Resources spent money to promote the use of national parks as perfect sites for a summer vacation causing motels, campgrounds and other tourist attractions in the private sector to become less attractive to consumers. Consequently consumers spent more money on trips to the national parks and less money in the private sector for their vacations resulting in _____.

Crowding out

__is the situation that occurs when government spending replaces spending by the private sector.

Crowding out

Which of the following words best describes the business environment?

Dynamic

T/F? Demography is the study of how people use their free time, how people integrate their hobbies and their vocations, and how people make their purchase decisions.

False

T/F? Legal challenges arising from laws designed to control anticompetitive behavior occur in monopolistic competition.

False

Tyron Lewis has recently quit his job in the administrative offices at the nearby hospital and is currently seeking a retail management position. He would be described as structurally unemployed.

False

Which of the following is NOT a form of unemployment? Seasonal, Cyclical, frictional, fiscal, structural

Fiscal unemployment

The implementation of a contractionary policy by the Federal Reserve would result in:

Increased economic growth

Because the government owns the factors of production in public lands, postal service, and some water resources, Great Britain is considered a(n):

Mixed economy

Which of the following factors would most likely result in a shift in the demand curve?

Prices of substitute products

The Federal Reserve System can do all of the following EXCEPT:

Print money

___ is the money a company earns from providing services or selling goods to customers.

Revenue

Martha Maguire recently was laid off from her telemarketing job for a large catalog retailer. Each January, Maguire is laid off as soon as the Christmas season is over. She will be hired back sometime during the summer. In terms of unemployment, Maguire is a good example of _____ unemployment.

Seasonal

T/F? A farmer's market where sixty farmers come weekly to sell the produce they grow in their gardens is an example of monopolistic competition.

True

T/F? Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions.

True

T/F? Freida Bida lost her job as a result of a recession and would be described as experiencing cyclical unemployment.

True

T/F? The national debt is the accumulation of deficits that have occurred in the past as a result of expenditures exceeding tax revenues.

True

Which of the following factors would most likely result in a dramatic change in supply?

a change in the price of raw materials used in the production process

In perfect competition, there is:

a large number of sellers producing nearly identical products

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

In a mixed economy, the government is involved in the economic system through:

taxing, spending, and welfare activities