Intro to Business Chapter 1 Quiz

The market for corn in Mexico has a large number of sellers and buyers, and there is no difference in the products sold by each seller. As a result, prices are determined by the

forces of supply and demand.

What are the two primary factors economists consider when evaluating the American economy?

growth in GDP and jobs

Following a bad harvest, the prices of agricultural commodities in Brazil have increased dramatically, as have the prices of products manufactured from agricultural commodities. Government intervention has failed to arrest the rising prices. Based on this information, Brazil is experiencing

inflation

The factors of production are the

land, labor, capital, and enterprise used to produce goods and services.

Fabulous Fitness has a new exercise video that it hopes will increase its sales. It is offering coupons and a sweepstakes to get people to buy the video. These are examples of

sales promotion.

What would hinder business activity as it relates to an open economy?

too much regulation of business activities

The quantity of goods and services that consumers are willing to buy at different prices at a specific time is referred to as

demand

Which statement is true about GDP as a measure of a country's economic health?

It measures only those goods and services made within a country.

Businesses differ from nonprofit organizations in that a business's focus is on

profit

What is true of a free-market system?

All economic decisions are made without government intervention.

Who subscribes to the ideals of a communist economy as proposed by Karl Marx?

Felix believes that in a society, people should contribute according to their ability and receive benefits according to what they need.

Which is the BEST example of a business trying to balance the needs of various stakeholders?

Pete's Pest Control Company is trying to develop an eco-friendly insecticide that will eliminate crop-killing pests and still adhere to environmental regulations.

What is true regarding an oligopoly?

Prices charged by different firms stay fairly close because a price cut or increase by one company will trigger a similar response from another company.

________ is the primary goal of business.

Profit

Which of the following is considered a command economy?

communism

As the service economy in America continues to rapidly grow, advances in technology are contributing to new service products based on technology and digital media that provide smart phones, social networking, and e-commerce. This suggests that the country may be moving toward being a ________ economy.

digital

What is associated with a decline in spending?

economic contraction

Ronan works for a custom furniture manufacturer. His job is to oversee the process of taking raw materials—lumber, fabric, and metal components—and ensure that they are transformed to the customer's exact specifications. Ronan's job falls under the business activity known as

operations

Decisions regarding product adoption, development, branding, and positioning fall under which element of the marketing mix?

product

Chi Ling lives in a country where income and social services are distributed equally among its citizens. However, the citizens must pay high taxes and the country often experiences high levels of unemployment. Chi Ling lives in a(n) ________ nation.

socialist