Practice questions business chap 1 and 3

the quality of life

The general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time.

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:

free trade

The key element in socialism is:

governmental control

the situation in which the average of all prices of products is rising is called

inflation

Demography is the study of:

people's vital statistics

The _____ GDP takes inflation into account and uses adjusted market pric

real

If you were told the output of goods and services produced in Tajikistan, a former Soviet Republic had increased by eight percent in 2006, you would correctly refer to this increase as

Economic growth

China imposes a 45 percent tax on the market value of all chickens that are imported from the U.S. into China. Another name for this type of tax is a(n):

Tariff

How has terrorism affected global trade

Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.

The karakul is a breed of Central Asian sheep that produces Canada is currently the second largest producer of nickel in the world. The reopening of the world famous Voisey's Bay mine, which has total resources estimated at 124 million tons of nickel-bearing ore, should give Canada a clear:curly, glossy wool. This wool is popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be grown in Central Asia, this region can be said to have a(n):

absolute advantage

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

actively looking for work

How has diversity impacted the marketing and customization of products?

along with their numbers, the buying power of minorities is growing

example of a businesses provides its customers with a good

bike manufactor

understanding the external business environment requires marketers to be aware of

changes in law which impact how business is conducted

Canada is currently the second largest producer of nickel in the world. The reopening of the world famous Voisey's Bay mine, which has total resources estimated at 124 million tons of nickel-bearing ore, should give Canada a clear:

comparative advantage

The ---- represents the prices of a market of goods and services are measured monthly by the department of labor

consumer price index (cp)

When the Federal Reserve implements a _____, it tightens the money supply by selling government securities or raising interest rates.

contractionary policy

In a complicated negotiated, Minmetals in China agreed to purchase at least 24,000 tons of copper cathode for $35 million from Pasar in the Philippines. According to the terms of the sale, Pasar will provide at least $12 million worth of coal to a Chinese power company that will provide the electricity needed to operate Minmetals. This is an example of a(n): Group of answer choices

countertrade

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

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts. This example of _____ shows how important it is for marketers to understand. Group of answer choices

cultural differences

In 1998 the tourism industry in Egypt had 43 percent unemployment due to an economic downturn that gripped the country as a result of an increase of terrorists' activities. The workers in the tourism industry were experiencing _____ unemployment

cylical

In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is the world's largest producer of the fruit. This prohibition remained in effect until 1996. The ban on importing Mexican avocados is an example of a(n): Group of answer choices

embargo

Corrine Attlee has always enjoyed cooking more than doing anything else. Atlee has decided to quit her job as a college professor and invest her life savings in starting a restaurant. Attlee is an example of a(n):

entrepreneur

When demand and supply meet, the price of the product or service is established. This is the point of

equilibrium

The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. _____ was the easiest and least expensive way for the growers' association to sell to global markets.

exporting

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

Legal challenges arising from laws designed to control anticompetitive behavior occur in monopolistic competition. (t or f)

false

Some global corporations are large enough to create major changes in the external environment. (t or f)

false

Telecommunications equipment manufacturers in the United States sell their products to people who live in Canada. To Canadians, the telecommunications equipment is an export. (t or f)

false

tyron lewis has recently quit his job in the administrative officers at the nearby hospital and is currently seeking a retail management position. he would be described as structurally unemployed (t or f)

false

Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.

floating exchange ranges

Which of the following statement about oligopolies is true?

in an oligopoly 3 or 4 firms dominate

The standard of living is low in Honduras. This means:

its citizens cannot afford to buy much

which of the following is not part of nation's infrastructure

its mountain ranges

The fifth factor of production identified by many managers and academicians is:

knowledge

what is an example of a factor of production

labor

What are the characteristics of pure competiton

large # of firms buyers and sellers in the market are welll- informed about the product all firms in the market sell similar products entry into market is east

In 2018, if the country of Serbia had imports of $10.58 billion and had an unfavorable balance of trade. This means that Serbia had:

less than 10.58 billion in exports

The implementation of an expansionary policy by the Federal Reserve would result in:

lower interest rates

is NOT a component of the consumer price index?

lumber used in the construction industry

Those people designated by demographics as _____ are defined as Americans born between about 1981 and 1997.

millennails

Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export (t or f)

true

The higher the price of a good or service, the greater the amount a producer is willing to supply.

true

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade. ( t or f)

true

The tax the US imposes on imported carbon steel production is called a tariff (t or f)

true

full employment means 94-96 percent of working force is employed (t or f)

true

In 2005, more than two-thirds of population of Haiti were not working, but were actively seeking employment. This 66.67 percent represents the nation's:

unemployment rate

Members of Generation X:

were born between 1965 and 1980

The National debt is the

Cumulative total of past national deficit

in terms of economic trends the complete opposite to communism is

capitalism

rudy and ritchie ling ran a camp this summer for children in their neighborhood. rudy spent $135 on supplies and earned $250 before expenses. ritchie spent $140 on supplies and made $210 before expenses. what is the combined revenue for the two brothers?

$460

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. Calculate Souza's costs for her summer job?

$80

The government does not consider full employment to mean 100 percent of its citizens are employed because:

- some are preparing for better employment by attending school -limiting jobs and competition is intense for jobs - temporarily unemployed waiting to start new jobs choose to be a stay at home parent

a ---- regulation in the US bans the use of foreign steel in constructing US highways

Buy- national regulation

Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business? Group of answer choices

monopolistic competition

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 ------- few sellers can exert substantial control over prices

oligopoly

refers to sending work functions to another country resulting in domestic workers losing their jobs.

outsourcing

Singapore has granted a(n) _____ on the importation of beer and stout made in the Philippines. This means that beer and stout made in the Philippines can sell for less in Singapore than beer and stout made by New Zealand or the United State

preferential tariff

----- is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and tax

profit

The main incentive in capitalism is:

profit

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nation's _____ GDP.

real

As soon as any nation has experienced two consecutive quarterly declines of its gross domestic product, that nation will be in a(n):

recession

archer daniels midland co. (adm) has joined with baron spices and seasonings to market spices, seasonings and herbs to the foodservice industry. adm will provide the raw materials, and baron will act as the distributor and use its already existing relationships with participants in the food service industry to make a success of this

strategic alliance

a strategic alliance is sometimes called a(n)

strategic partnership

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them. This is an example of _____ unemployment.

structural

The most fundamental reason for the growth in world trade is probably due to:

the need for businesses to expand their markets

Which of the following is the best example of a service

the pleasure you derive from seeing a good play

Imagine that you were reading an international marketing text in which you learned that the GDP for a nation that was a member of the former Soviet Union was $1.56 billion. A few pages later in the same text, the book states that that nation's real GDP was $800,000. From reading this information, you would know that

this former member of the soviet union had a high rate of inflation

Belinda Asher works in a vegetable processing plant and is out of work about six months a year due to the periodic harvest times. She can be described as seasonally unemployed. (t ot f)

true