Lights, Camera, Business Unit Review

Which change provides the most time utility for a consumer? A) Staying open for business on the weekend B) Arriving at a product trade show early C) Shopping for a product in the morning D) Asking for early delivery of a product

A) Staying open for business on the weekend Staying open for business on the weekend provides the most time utility for a consumer because the consumer can shop at a convenient time. Of course, a consumer may decide to shop for a product in the morning, if s/he so chooses. Also, consumers receive no direct time utility from a marketer's arrival time at a trade show—nor from a marketer's (or consumer's) request for early delivery of a product.

Which of the following occurs when the supply of individuals who are able and willing to work diminishes? A) Capital goods become unlimited. B) Human resources become limited. C) Capital goods become limited. D) Human resources become unlimited.

B) Human resources become limited. The supply of people who are willing to work diminishes; therefore, human resources become limited. Capital goods remain unchanged.

Which of the following is a reason that wants are unlimited? A. People are always able to obtain enough resources to satisfy all of their wants. B. People are never able to obtain enough resources to satisfy all of their wants C. People's desires change with different situations or circumstances. D. The ultimate goal of all economic activity is consumption.

B. People are never able to obtain enough resources to satisfy all of their wants

Producers respond to consumers' positive economic votes by... A) decreasing production. B) classifying their goods and services. C) increasing production. D) producing more industrial goods.

C) increasing production. If a certain product is wanted by consumers, its production will be increased; however, if the item is not popular, its production will be stopped. Producers would not increase their production of industrial products in response to consumers' needs since industrial products are used by businesses. Classifying goods and services helps marketers select appropriate marketing activities for the particular good or service.

Where a product is available for purchase is referred to as... A) the right location. B) the setting. C) place utility. D) product display.

C) place utility. Place utility is the usefulness provided by where a product is available for purchase. The right location offers the best place utility, of course. The setting is the selling environment, in general. And, to showcase a product for sale, marketers may use a product display.

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a... A) merger. B) franchise. C) corporation. D) partnership.

D) partnership. A partnership is a form of business ownership in which the business is owned by two or more persons. Often, the purpose of forming a partnership is to combine the capital, the experience, and the abilities of the partners. A corporation is a form of business ownership owned by stockholders who have purchased stock. A franchise is an agreement between a parent company and a franchisee to distribute goods and services. A merger is the absorption of one company by another.

To provide utility, a product must be... A) innovative. B) economical. C) appealing. D) useful.

D) useful. To provide utility, a product must be useful. It can be innovative, economical, and appealing—but it must be useful.

To discover a product's level of utility, marketers measure the consumer's A. desire. B. perspective. C. attitude. D. satisfaction.

D. satisfaction. To discover a product's level of utility, marketers measure the consumer's satisfaction. The consumer's perspective, attitude, or desire may affect his/her purchase decision—but marketers measure the satisfaction actually received.

ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a A. licensing agreement. B. sole proprietorship. C. product trade-name contract. D. limited joint-venture contract.

A. licensing agreement. ABC Specialty Wear's agreement with the football team is a licensing agreement. Licensing refers to an owner's authorization for another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties. Product trade-name (also called dealership or exclusive distributorship) refers to a franchise arrangement based on an independent sales relationship between a franchisor and franchisee to stock and sell a specific line of goods. A sole proprietorship is a business that is owned by one person. A joint venture is an arrangement that involves two or more businesses combining complementary resources for the benefit of all parties.

In economics, the term capital goods includes... A) labor and management. B) buildings and equipment. C) mental and physical work. D) trees and water.

B) buildings and equipment. Capital goods include all materials used in the production of goods and services. In fact, any manufactured or constructed item that is used to produce goods and services is considered a capital good. Labor and management are considered human resources. Mental and physical work are the types of work done by human resources. Trees and water are examples of natural resources.

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good. A) enviable B) consumer C) industrial D) ultimate

B) consumer Consumer goods and services are those that are purchased and used by consumers. Manufactured or constructed items that are used to produce goods and services are known as capital goods. Industrial goods and services are purchased by producers for resale, to make other goods and services, and/or to use in business operations. There is no such thing as an "ultimate" good.

A gap between unlimited wants and limited resources creates a condition known as... A) economics. B) scarcity. C) wants. D) resources.

B) scarcity. Scarcity. Scarcity occurs when there are not enough resources to meet people's wants. Resources are considered limited because there are not enough of them so that everyone can have as much of them as they wish. Economics is the study of how to meet unlimited, competing wants with limited resources.

Which of the following economic resources is responsible for combining the other resources to produce goods and services? A) Natural resources B) Capital goods C) Human resources D) Nonrenewable resources

C) Human resources Human resources, which are often considered to be the most economic resource, are responsible for combining natural resources and capital goods to produce goods and services. Human resources are required, to some extent, in the production of all goods and services. Nonrenewable resources are a type of natural resource.

What are the three basic economic questions? A) When will products be produced; how will products be produced; and how will products be allocated B) When will products be produced; what products will be produced; and how will products be allocated C) What products will be produced; how will products be produced; and how will products be allocated D) Where will products be produced; when will products be produced; and what products will be produced

C) What products will be produced; how will products be produced; and how will products be allocated These are questions which all economies must answer. Societies must determine what and how many goods and services to produce. They must determine the best, most efficient ways of producing goods and services, and they must decide how the goods and services will be divided among the members of their societies.

What determines whether an economic product is an industrial product or a consumer product? A) Who produces the product B) The origin of the project C) Who buys and uses the product D) The price of the product

C) Who buys and uses the product Industrial products are purchased by producers for resale, to use in making other goods and services, or for use in their operations. Consumer goods and services are purchased and used by the ultimate consumer. Price, origin, and producer have no bearing on whether a product is a consumer or an industrial item.

Using a stream to supply water to a field in order to grow crops is an example of using... A) nonrenewable resources. B) capital goods. C) human resources. D) natural resources.

D) natural resources. Natural resources are found in nature and are used to produce goods and services. Human resources are the people who work to produce goods or services. Capital goods are all manufactured or constructed items that are used to produce goods or services. Nonrenewable resources are natural resources that may become entirely depleted. Nonrenewable resources cannot be replenished after use. Water is not a nonrenewable resource.

A characteristic of human wants is that they are... A) unlimited. B) unchanging. C) consistent. D) limited.

A) unlimited. In other words, when one want is satisfied, there are other wants waiting to take its place. Wants are not consistent but vary from person to person and from age group to age group. This means that your wants will change, not remain the same. Your wants are also competing. In other words, you might want more than one thing at the same time.

Which one of the following groups of words best describes wants? A) Limited, changing, and compensating B) Unlimited, changing, and competing C) Limited, unchanging, and competing D) Unlimited, unchanging, and compensating

B) Unlimited, changing, and competing Wants are considered unlimited because people always have them. People's desires change with different situations or circumstances. Wants are considered competing because people must choose which wants to satisfy at any one time.

For a consumer to be satisfied, the four types of utility must be... A) promoted. B) profitable. C) produced. D) present.

D) present. For a consumer to be satisfied, the four types of utility must be present. An absence can prevent a purchase from occurring. Any of the four types of utility may be produced or promoted without satisfying the consumer. The four types of utility may be present without being financially profitable for the marketer.

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate? a. Corporation b. Cooperative c. Partnership d. Sole proprietorship

a. Corporation A corporation is the only form of business organization that is permitted to sell stock. The other alternatives are types of businesses that must use personal funds, borrow, or take on new partners to raise capital.

Social responsibility is the duty of business to a. contribute to the well-being of society. b. provide social activities for employees. c. contribute to product development. d. provide educational loans to employees.

a. contribute to the well-being of society. Businesses can show their social responsibility by maximizing their profits and/or contributing to public interests. While some businesses do provide certain social activities for employees, or may have a credit union from which employees can obtain loans for various purposes, these are not duties of social responsibility. Contributing to product development would benefit the business, not society.

"Economic votes" are cast by consumers each time they a. make a purchase. b. visit a business. c. respond to a survey. d. participate in market research.

a. make a purchase. When consumers make purchases, they are voting for those products and against others which they did not buy. This influences which products will be produced and at what price they will be sold. Market research uses surveys, interviews, and other methods to identify consumers and their buying habits. Consumers who visit a business without making purchases do not provide the business with any information.

Into what two categories can wants be divided? a. Unlimited and limited b. Unlimited and economics c. Economic and noneconomic d. Unlimited and noneconomic

c. Economic and noneconomic Economic wants have monetary values attached to them, while noneconomic wants are free. Economics is concerned with economic wants. Wants are considered unlimited because everyone has them, they change, and people are not able to obtain enough resources to satisfy all of their wants. Limited wants do not exist.

George has decided to purchase a dishwasher. He is checking the newspaper ads for the best place to get quality goods and services at a reasonable price. What type of product is the dishwasher? a. Capital b. Convenience c. Shopping d. Specialty

c. Shopping Shopping goods are consumer products that are purchased by consumers after comparing products and stores to get the best quality, price, and/or service. Capital goods are manufactured or constructed items used in the production of goods and services. Convenience goods and services are purchased quickly and without much thought or effort by ultimate consumers. Specialty goods are consumer products with special or unique characteristics consumers are willing to exert special efforts to obtain.

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public? a. Limited b. General c. Public d. Private

d. Private A private corporation may be owned by just a few people and does not offer its shares for sale to the general public. It usually is not required to make its financial activities public. For tax reasons, it must prepare reports for the states in which it operates. A public corporation usually sells millions of shares of stock to many stockholders. Limited and general are types of partnerships.

When a stove is used in a restaurant kitchen, it is a a. noneconomic resource. b. natural resource. c. human resource. d. capital good.

d. capital good. Capital goods help people to be more productive. In other words, capital goods help human resources to do more in less time than they could do without tools, machinery, roads, etc. People—also known as human resources—create and use capital goods to transform natural resources from their less satisfactory original state to products that better satisfy consumers. Natural resources, human resources, and capital goods are all economic resources.

The heart of economics is a. trade-offs. b. wants. c. resources. d. decision-making.

d. decision-making. The heart of economics is decision-making—choosing among alternatives. Decision-making is necessary because we have limited resources with which to satisfy unlimited wants. Trade-offs are an aspect of decision-making because people must often accept less of one item in order to get more of another.

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of... A) a partnership agreement. B) licensing. C) franchising. D) multi-level marketing.

C) franchising. Franchising is a method of distributing goods and services through a licensing arrangement between the franchisor and the franchisee. Multi-level marketing businesses pay commissions to sales representatives at two or more levels. Licensing refers to an owner's authorization for another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties. A partnership agreement is a written document that specifies the terms of a partnership.

Task utility is about making changes to the characteristics of a... A) job. B) project. C) service. D) good.

C) service. Task utility is about making changes to the characteristics of a service. Changing a good's form is form utility. A job or a project may be referred to as a "task" in another sense of the term.

Two factors involved in determining the value of a resource, good, or service are A. demand and desires. B. availability and trade-offs C. availability and demand D. productivity and opportunity costs.

C. availability and demand Resources, goods, and services that are abundant are usually less highly valued than scarce resources, goods, and services. As people's desires, or demands, for resources, goods, and services increase, so do the money payments they will be willing to make. Another factor which affects the value of a resource, good, or service is productivity.

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? a. New pair of jeans b. $40 c. Trip to amusement park d. No opportunity cost was involved.

a. New pair of jeans When a choice is made about the best use of resources, the alternative that is given up is called the opportunity cost. In this case, John decided to spend his money on a trip to an amusement park, rather than on a new pair of jeans. Since the pair of jeans was given up, it is the opportunity cost. Opportunity costs exist because of scarcity.

The ultimate goal of all economic activity is a. consumption. b. production. c. exchange. d. distribution.

a. consumption. The ultimate goal of all economic activity is consumption, which is the economic process or activity of using goods and services. For consumption to occur, goods and services must be produced, or made. Producers, consumers, and resource owners exchange money payments for the use of their goods, services, and resources. Distribution examines how money payments are divided between producers and resource owners.

Seeing a movie at a theatre would be considered a(n) __________ want. a. economic b. unlimited c. limited d. noneconomic

a. economic An economic want is something which you desire that has a monetary value. Seeing a movie would have a monetary value attached to it. A noneconomic want is a desire for something that has no monetary value. Wants are unlimited because everyone has them, they change, and people are not able to obtain enough resources to satisfy all of their wants. Limited wants do not exist.

"To form my business, I used all of my savings, borrowed from the bank, and I'm personally liable for all of the debts." This is an example of which of the following forms of business ownership: a. Partnership b. Sole proprietorship c. Corporation d. Cooperative

b. Sole proprietorship A sole proprietorship is a form of business ownership in which the business is owned by one person. Sole proprietors finance their own businesses, run them, and are personally liable for all losses. A partnership is a form of business ownership in which the business is owned by two or more persons. A corporation is owned by stockholders, and a cooperative is owned by its members.

Resources that enable businesses to operate are also known as a. revenues. b. inputs. c. outputs. d. sales.

b. inputs. Resources are items used to produce goods and services. Without resources, or inputs, there would be no outputs, or production. Revenues are income, some of which is usually from sales.

A manufacturer is a type of business that a. sells raw goods for their producers. b. turns raw goods into useful products. c. keeps raw goods in their original forms. d. does not make use of raw goods.

b. turns raw goods into useful products. Turns raw goods into useful products. The manufacturer changes the shapes or forms of raw goods so that they will be useful to consumers. Manufacturers buy raw goods from their producers and sell finished products.

Each day, a restaurant sends its used linens to a laundry to be cleaned and pressed. In economic terms, the laundry service would be classified as a(n) __________ service. a. consumer b. ultimate c. tangible d. industrial

d. industrial Industrial goods and services are purchased by producers for resale, to make other goods and services, and/or to use in business operations. The laundry service is an industrial service because it is purchased by the restaurant as a necessary part of its daily operations. Consumer services refer to economic services used by ultimate consumers to satisfy wants and needs. Services are intangible, not tangible. There is no such thing as an "ultimate" service.

Friendship would be considered a(n) __________ want. a. economic b. limited c. unlimited d. noneconomic

d. noneconomic Noneconomic wants do not have a monetary value attached to them. They are considered free goods. Friendship is an example of a free good. An economic want has a monetary value attached to it. Wants are considered unlimited rather than limited because everyone has them, they change, and people are not able to obtain enough resources to satisfy all of their wants.

If a good or service is scarce, consumers will usually be... A) unwilling to buy it. B) willing to pay money to get it. C) uninterested in owning it. D) able to get as much of as they want.

B) willing to pay money to get it. A good or service is considered scarce when not everyone can have as much of it as desired. This makes consumers willing to pay for the item to obtain it. Since scarce items may be hard to locate, consumers may be more interested in owning them and willing to buy them.

Over the next few years, members of Generation X and Generation Y are expected to fill many job positions vacated by retiring Baby Boomers. This is an example of a change in a. workforce demographics. b. nonrenewable resources. c. automated processes. d. new capital goods.

a. workforce demographics. As the Baby Boomers exit the workforce and members of Generation X and Generation Y fill many of the Boomers' old jobs, the makeup of the workforce will change. Since demographics consist of information used to describe a population, we can say that workforce demographics will change when the Baby Boomer Generation retires. Nonrenewable resources are natural resources that may become entirely depleted and cannot be replenished after use. Automated processes are activities that are completed by machines versus humans. Capital goods are manufactured or constructed items that are used in the production of goods and services.

Changing a good's form involves which of the following: a. Getting the good to the retailer b. Adding a new feature to the good c. Making sure the good is available early d. Providing an easy way to buy the good

b. Adding a new feature to the good Changing a good's form involves adding a new feature to the good. Getting the good to the retailer is part of place utility. Making sure the good is available early is part of time utility. And, providing an easy way to buy the good is part of possession utility.

How would a business's computers be classified? a. As parts b. As equipment c. . As supplies d. As an installation

b. As equipment Equipment is used in the operation of a business but not in the actual production of a good or service. Supplies are goods that are constantly being purchased and used up in the operation of a business. A part becomes part of a finished good without additional processing. Installations are industrial goods used to produce goods and services.

Rather than being required to start his work day at 8:00 a.m. and end at 4:00 p.m., Tyler is allowed to start and end his work day at his convenience as long as he works 40 hours per week. This is an example of a. shared time. b. lead time. c. flextime. d. just-in-time.

c. flextime. Flextime is a scheduling procedure in which employees select their own working hours as long as they work the required number of hours per day or per week. Since Tyler is allowed to start and end his work day at his convenience as long as he works 40 hours per week, he is benefiting from flextime. Shared time involves the use of two employees to share the responsibility for one fulltime position. Lead time is the amount of time that passes between placing an order and receiving the stock. Just-in-time is an inventory control method that orders goods just in time for them to be used or sold.

Retailing takes place whenever goods are a. offered for sale. b. exchanged for other goods. c. sold to the ultimate consumer. d. sold in a retail establishment.

c. sold to the ultimate consumer. Retailing is not simply the exchange of goods or offering goods for sale. Retailing occurs only when goods are sold to those who will use them, and it may occur in the consumer's home, over the telephone, or in a variety of ways other than in a retail establishment.