Buisness Exam
Economics
About scarcity & choices •Making decisions
The market's way of rationing limited resources, goods, and services to consumers in a market economy is through • Commissions • profits • incentives • prices
Commissions
Ongoing efforts within a hospitality operation to better meet or exceed guests expectations relates to the emphasis on: • cost control • continuous quality improvement • guest value determination analysis • cost minimization
Continuous quality
A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider? • Language variations • Currency fluctuations • Differences in laws • Opportunity costsCurrency Fluctuations
Currency Fluctuations
A group of entrepreneurs is trying to decide which of five new product ideas to select. Which tool can be used to help make the decision? • Decision matrix • Entrepreneurial discovery process • Business processes • Opportunity cost analysis
Decision matrix
In some states, it is against the law to sell alcohol on Sundays. This law was created to honor the Christian religious belief that Sunday is a special day of rest. This is an example of culture impacting the __________ of goods. • production • distribution • pricing • packaging
Distribution
Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is • staying at home. • both the ice cream and the movie. • ice cream at Dairy Queen. • the movie.
Ice cream at Dairy Queen
Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks: • Excess demand • Relative price • Inflated price • Incentives
Inflated Price
Which of the following is characteristic of a buyer's market: • High demand • Steady demand • Low supply Low prices
Low Prices
John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? • $40 • New pair of jeans • Trip to amusement park • No opportunity cost was involved.
New pair of Jeans
The use of thorough job orientation helps to increase productivity through • mass production. • participative decision making. • training and education. • quality of work life.
Participative
Why are human resources limited? • Some people are unable to work. • New equipment is expensive. • Countries lack needed technology. • World population continues to grow.
Some people are unable to work
Why are resources considered limited? • Entrepreneurs do not invest enough of them. • There are not enough available so that everyone can have as much of them as desired. • Everyone has them, and they change. • There are so many that people must decide which ones to choose at any one time.
There are not enough available so that everyone can have as much of them as desired.
Why do most businesses use some type of quality control method at work? • To organize employees • To minimize errors • To attract vendors • To guarantee safety
To guarantee safety
An automobile assembly line currently has 75 cars being assembled. These partially-complete cars are considered • direct labor utilization. • flow time. • direct labor content. • work in process.
Work in Progress
insentive
a thing that motivates or encourages one to do something.
Trade-off
an alternative that we sacrifice when we make a decision
The amount of a product that is produced is most directly affected by • labor unions. • product utility. • product value. • consumer demand.
consumer demand
Changes in the Business Environment
organizations need to be aware of changes in the business environment that might effect the position of their products or services
One way for a business to increase productivity is to increase its • imports. • environmental concern. • prices • research and development.
prices
economic growth
the ability of the economy to increase the production of goods and services
oppurtunity cost
the most desirable alternative given up as the result of a decision
Scarcity
•The fundamental economic problem that forces consumers and producers to use resources wisely. •Forces Economizing •use resources less wastefully
Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being sold as an effective refrigerator deodorizer. This is an example of ____________ innovation. • positioning • process • distributed • associative
Process
When customers buy the exact amount of goods that producers are selling at a specific price, the __________ price exists. • market • equilibrium • unit • production
Production