CH 1

the functions of organizing, staffing, planning and controlling are most closely associated with:

managers

what is the primary goal of business

profit

advertising, personal selling, coupons and sweepstakes are forms of the aspect of marketing activities

promotion

the entrepreneur has been primarily associated with willingness to:

take risks

who is the father of capitalism

Adam Smith

owners always manage their businesses

False

owners have little responsibility to provide funds for the operation of the business

False

following a bad harvest, the prices of agricultural commodities in Urbania have increased dramatically6, as have the prices of products manufactured from agricultural commodities. Government intervention has failed to arrest the rising prices. Based on this information, Urbania is undergoing

Inflation

a central issue of economics is how to fulfill an unlimited demand for goods and services in a world with limited resources

True

the equilibrium price is represented by the point where a product's supply and demand curves interact

True

when there is only one business providing a product in a given market, there exist:

a monopoly

Before the industrial Revolution, the economy of North America under the colonist was characterized by:

a scarcity of natural resources

economic expansion occurs when:

an economy is growing and people are spending more money

financial resources are also known as

capital

which of the following is a force with an an organization's control that has an impact on the business's daily operations?

competition

increased unemployment can reduce consumer demand for goods and services, leading to:

deflation

in which of the following markets is there most likely to be a monopoly?

electricity supply

the is the best price at which the number of products equals the number of products consumers are willing to purchase at a point in time

equilibrium price

what is the primary lesson to be learned from the economic scandals of the early 21st century?

ethical conduct and corporate social responsibility are linked to increased profits

Monopolistic competition exists when there is only one producer of a product in a given market

false

an oligopoly exists when there are many small businesses selling one standardize product

false

nonprofit organization such as Habitat for Humanity do not engage in management, marketing or finance activities

false

which of the following is a change that occurred in the U.S. during the Industrial Revolution:

farm production decreased as industrial production increased

which of the following is a change that occurred in the U.S. during the Industrial Revolution?

farmers began to move to cities to find jobs in factories

all the following are factors of production used to make goods and services, EXCEPT:

financial resources

a firm's resources are also known as labor

human

a firm's resources are also known as labor

humans

a condition characterized by continuing rise in prices over a period of time refers to:

inflation

gathering information and conduct research to determine what customers want.

markerts

the American economic system is best described as because the government regulates business to preserve competition and protect consumers and employees

modified capitalist

which of the following is a factor of production for a firm? legal consultants customers natural resources advertising media company reputation

natural resources

exists when there are many small businesses selling one standardized product

pure competition

the market for corn in Brazil has a large number of sellers and there is no difference in the products sold by each sellers. As there are also a large number of buyers for the corn, the actions of a single seller or buyer cannot affect the price. The market for corn can be described as

pure competition

as U.S. consumers get busier and earn more money, they hire others to do tasks such as house cleaning, laundry and landscaping, resulting in the development of an economy focused on making life easier for busy consumers

service based

economic contraction is said to have occurred when:

spending declines

a budget deficit occurs when a nation:

spends more than it takes in from taxes

all the groups that have an interest in an organization's success and outcomes are known as the organization's

stakeholders

in a socialist economic system:

there is no concept of small businesses owned by individuals

free market capitalism and laissez-faire capitalism are essentially the same thing

true