BUS 100 CH 1 QUIZ #1

When the economy is in a recession, many companies must lay off workers, which causes _____ unemployment.

cyclical

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

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

Communism

A business is an organization that strives for a profit by providing goods and services desired by its customers.

true

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

Last year, a mother in a small African nation could buy a pound of flour for the U.S. equivalent of $1.30. Six months ago, an identical pound of flour costs $3.40. Today she would need $5.60 to buy that pound of flour. This example of the general upward movement of prices is called:

inflation

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

labor

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

Successful owners and managers must continually study which of the following elements of the environment to remain successful?

All of these

How has diversity impacted the marketing and customization of products?

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

In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundreds of lawyers listed in the New York City phone book. Each lawyer is a close substitute for another but with slight differences. Which of the following market structures best describes the one in which lawyers operate?

monopolistic competition

With a communist economy system:

none of these are true

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

Within the music industry, four companies (UMG, Sony-BMG, EMI, and Warner) control 90 percent of the music you hear. The music industry operates in a(n) _____ market structure.

oligopoly

Labor, as a factor of production, refers to:

only hourly wage earners

Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in a three-month period can receive a $20 reward good for the purchase of additional Office Depot merchandise. Customers who spend between $300 and $499 receive a $30 reward and those who spend more than $500 quarterly receive a $50 reward. The goal of this _____ program is to encourage customers to consolidate their office product purchases at Office Depot.

relationship management

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

Which one characteristic most clearly defines a market structure?

the number of suppliers in a market

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play

When Raoul Welsh is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home building nationwide, he is looking at microeconomics.

false