Business enterprise BUS 1750

companies trade database information so they

-can send you direct mail advertising products you are likely to want -know what customers buy and from whom

in a free market economy, as the price of a product increases, so will the amount supplied. Why?

-high prices lead to increased revenues, which allows firms to buy more raw materials and employ more workers -high prices lead to high profits, attracting new firms to the market.

The richest demographic in the United States is comprised of people between the ages of

65 and 74

The first economist to describe the process that turns self-directed gain into social and economic benefits for all was

Adam smith

Which of the following statements regarding diversity is TRUE?

Diversity affects companies in both the marketplace and the workplace.

Monetary policy is one of the tools used to stabilize the economy. Monetary policy is implemented by

Federal Reserve Bank

the total value of final goods and services produced in a country in a given year is called:

GDP

What is one of the most significant changes in the marketplace today?

It has become increasingly diverse.

Who is known for putting forth communism as a political ideology?

Karl Marx

Wayne owns a manufacturing company headquartered in the U.S. He is considering building a manufacturing plant in an Eastern European country to better serve customers in that market. He is carefully analyzing the laws in that country to ensure that the government cannot seize his plant without notice or reason. This best demonstrates his understanding of which basic right of capitalism?

The right to own private property

Which of the following created the name "dismal science" to refer to economics?

Thomas Carlyle

When they first came onto the marketplace, high-quality Blu-ray disks were offered by both Netflix and Blockbuster. Over time, however, Blockbuster lost significant market share to Netflix. This is an example of how

a quality of a product by itself is no longer a guarantee of a company's success

Jessica has a successful career working for a prestigious Fortune 500 company. However, she has decided to risk the security of her current job and open a small consulting business specializing in marketing. A person who risks time and money to start and manage a business is called

an entrepreneur

when the government spends money on such projects as roads and bridges, it is expected that the money will trickle down to the consumers eventually leading to:

an increase in consumer spending

The most likely outcome of global business expansion and an increase in U.S. global trade is

an overall increase in jobs.

Johanna, an Austrian citizen, is graduating from a U.S. medical school. She knows she will have to pay a much higher percentage of her income in taxes if she practices medicine in Austria, so she decides to remain in the U.S. after graduation and become a U.S. citizen. This is an example of ________ in Austria

brain drain

Claudio bought a powerful gaming computer over the Internet. In order to take advantage of a 10% discount on his purchase, he also opened an online account. This is just one example of how technology makes it easy for companies to

build a customer database

_______ is defined as any activity that seeks to provide goods and services to others with the goal of earning a profit.

business

The terms "boom," "recession," "depression," and "recovery" refer to the four long-term phases of the

business cycle

A property management firm in Iowa purchases commercial cleaning supplies online from a manufacturer in Ohio. This transaction is a _______ sale.

business-to-business (B2B)

The economic system that has led to the prosperity of most developed economies is

capitalism

Hugo loves in a country where individuals own all or most of the factors of production. clearly Hugo lives in a ________ country.

capitalist

The movement of the temperature of the planet up or down over time is referred to as

climate change

the economic system in which the government largely determines what products get produced, who gets them, and how the economy grows is called a :

command economy

The socioeconomic structure in which all factors of production, both human and non-human, are owned by the government, and the government establishes rules for production and consumption is known as

communism

when the government makes almost all economic decisions and owns almost all the major factors of production, the country is considered to be under the political system called

communism

All of the following are elements of the economic and legal environment EXCEPT

demographic changes of the population

The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income is referred to as

demography

Each year, the World Bank publishes a "Doing Business" report in which economies are ranked on their ease of doing business. Two criteria the World Bank takes into consideration when ranking economies are the ease of obtaining credit and the government's enforcement of contracts. These criteria relate to the

economic and legal environment

___________ is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

economics

Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests is called

empowerment

Janet was given the authority by her manager to handle customer requests as she saw fit and was allowed to make decisions to quickly respond to customer complaints. This is an example of

empowerment

Many countries have clear laws that protect businesses and minimize corruption. However, the country's government must also

enforcing existing laws

Tom Lennon is in the business of providing entertainment for many audiences. Tom is self-employed and therefore, is considered to be a(n)

entrepreneur

Which of the following is one of the most important factors of production?

entrepreneurship

You are employed as a consultant by the prime minister of a developing nation to research ways of creating wealth in the nation. What two factors of production do you suggest to him will play the most crucial role in this mission?

entrepreneurship and knowledge

one of the best ways for a company to achieve a competitive edge is to

exceed customer expectations

The purposes of nonprofit organizations include:

filling societal need ; filling an educational need

During the latest economic downturn, the government decided to increase government spending, hoping this would create jobs and jumpstart the economy. This was an example of _______ policy

fiscal

Mr. Hansen wanted to update his motel's washers and dryers with greener, more energy-efficient ones, but the cost seemed too high. However, when he learned that the government was trying to stimulate the economy by offering tax cuts for "greener investments," he purchased the equipment. These tax cuts are part of the government's

fiscal policy

A _______ economy corresponds to capitalism, whereas a _______ economy corresponds to socialism or communism.

free-market; command

Fiscal policy is the federal government's effort to keep the economy stable my increasing or decreasing:

government spending and taxes

The major benefit of socialism is

greater social equality

The development of business strategies that go beyond regulation and demonstrate a commitment to saving energy, reducing a business's carbon footprint and producing environmentally-friendly products is known as

greening

The total value of final goods and services produced in a country in a given year is called

gross domestic product

competition in the market place

have never been greater that it is today

While considering doing business in a developing nation, John carefully researches the local business environment. Which of the following factors would deter John from establishing operations in this nation?

high corruption in the legal system

The economic concept of supply maintains that, generally speaking, the quantity of products or services offered by sellers _______ as the price _______.

increases ; increases

One way in which technology affects the business environment negatively is by

increasing the possibility of large-scale identity theft.

We are entering a new era of business that will alter all sectors of the economy. This era focuses on ________.

information-based industries

one way to differentiate between goods and services is that services such as education, insurance and tourism are_____________, while goods such as automobiles are tangible.

intangible

Monetary policy is based on the management of the money supply and

interest rates

The _______ is another name for the theory that peoples' efforts to improve their own situations in life also help the economy grow and prosper.

invisible hand

according to Adam Smith, the process that turns self-directed gain into and social and economic benefits for all is the

invisible hand

The Uniform Commercial Code is important to businesses in the United States because:

it makes business agreements such contracts enforceable by law

among the benefits businesses provide to their communities are:

jobs; goods and services; tax payments

When studying the operation of a nation's economy as a whole, one is said to be taking a(n) _____ view

macroeconomic

The branch of economics that examines the economy as a whole is called

macroeconomics

studying the economic behavior of individual people and organizations in markets for particular products or services is____________

microeconomics

The trend of most countries today is toward a(n) _______ economy

mixed

Economic systems in which some allocation of resources is made by the market and some by the government are called

mixed economies

The two primary tools that the government can use to stabilize the economy are

monetary and fiscal policy

The market structure in which there are a large number of sellers that provide similar—but not identical—products is called

monopolistic competition.

organizations such as the Red Cross, public school systems, and the United Way are examples of ___________ organizations.

nonprofit

When a company contracts with another, sometimes in another country, to do some of its functions, such as production or accounting, it is known as ______________

outsourcing

when a company contracts with other companies, sometimes in another country, to do some or all of its functions, it is called

outsourcing ; contracting

Ultimately, one of the best conditions for global business growth is _______, because it encourages greater trade and the emergence of new markets.

peace

Entrepreneurs take risks. What risk did Tom take to become a successful entrepreneur?

possible failure

The amount of output you generate given the amount of input, such as the number of hours you work is called

productivity

The growth of the segment of the population known as Seniors, which has more wealth than other in the US, offers many opportunities for new

products and services

The best benefit of increased global trade is that it

provides people in foreign territories with new jobs.

Which of the following is NOT a benefit of a mixed economy?

public ownership of business

As an economist, Julia watches the evolution of the gross domestic product. She observes that the GDP has decreased over the past few quarters. She believes this means that the economy is experiencing a

recession

In a ____________, prices fall, people purchase fewer products, and businesses fail for two or more consecutive quarters.

recession

The study of how to increase resources and to create the conditions that will make better use of those resources is called

resource development

the study of how to increase resources or create conditions that will make better use of them is

resource development

If a country's government wants to attract foreign investors, it should lower the _______ associated with starting a business.

risk

As an entrepreneur, Tom also works for other people. What benefit do entrepreneurs receive by working for others?

security of employment

An intangible product such as health care is a

service

Careers in law, healthcare, entertainment and financial services are part of the _________ sector.

service

the __________ sector generates about 80% of the value of the US economy

service

A situation when the economy is slowing but prices are going up anyway is called

stagflation

groups that have a strong interest in the success and outcomes of a business, such as employees, neighbors, or government regulators are called_____________

stakeholders

The amount of goods and services people can buy with the money they have is known as the

standard of living

The business environment that has changed the most in the past few decades is the _______environment.

technological

Much like Tom, entrepreneurs may experience a high degree of flexibility and opportunity. However, entrepreneurs are challenged by the demands of the business environment. Which of the following is NOT one of the five elements of the business environment that can either help or hinder the development of a business?

the financial environment

Mark works for a pharmaceutical company. One of the most important trends affecting his company is

the increase in the number of older citizens in the population.

One of the major reasons for the decrease in the need for agricultural workers was

the increased efficiency of agricultural workers.

In free markets, prices are determined by

the negotiation between buyers and sellers that takes place in the marketplace.

Price indexes such as the consumer price index (CPI) measure

the overall health of the economy.

If the price of a product were to go down, which of the following will most likely happen?

the quantity demanded will increase

in perfect competition:

there are many sellers productions appear to be identi

As a result of brain drain and less competition, socialist countries

trail capitalist countries in terms of inventions and innovation.

When supply and demand meet at the equilibrium point, prices in the market will

trend toward that price

the unemployment rate refers to the percentage of civilians at least 16 years of age who are

unemployed and tried to find a job within the prior four weeks

Which of the following is an advantage to being an entrepreneur ?

you keep all the profits

Which of the following is a disadvantage to owning and operating your own business?

your personal assets can be seized to pay off the business's debts