business economic
"Big Q" focuses on a. exceeding customer expectations. c. conforming to specifications. b. improving factory conditions. d. designing and developing products.
a
A business's computer networking requirements would be listed in which section of a feasibility study: a. Technical b. Organizational c. Financial d. Marketing
a
A company is facing negative returns. Which stage of production is the company in? a. Third b. Second c. Fourth d. First
a
A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of a. specialization. c. productivity. b. division of labor. d. competitive advantage.
a
A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of a. specialization. c. productivity. b. division of labor. d. competitive advantage.
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A country's net exports are a negative figure in GDP calculations whenever a. imports are greater than exports. c. there is a trade surplus. b. business inventories decrease. d. uncounted production declines.
a
A disadvantage to workers of having a union represent them is that they a. have to pay union dues. b. are promoted based on seniority. c. must abide by safety rules. d. pay supplemental unemployment benefits.
a
A feasibility study can form a solid foundation for which of the following business documents: a. Business plan b. Income statement c. Balance sheet d. Annual sales report
a
A non-pressure strategy that unions and management can use to reach agreement is a. arbitration. b. a corporate campaign. c. a shift in production. d. an injunction.
a
A team of employees is responsible for researching potential demand for a business's brand-new product. The factor that is most likely to affect demand for this product is the a. product's utility. c. government's policy. b. costs of production. d. number of producers.
a
According to the classical theory of unemployment, the best solution for unemployment is to a. cut wages. c. encourage spending. b. increase prices. d. decrease inflation.
a
According to the law of diminishing returns, what will happen to the output of a taco truck if it continues to hire employees? a. Increases in output will eventually decline. b. Increases in output will increase with every employee. c. Increases in output will decrease, and then begin to increase. d. Output will increase the same amount with each employee.
a
An increase in aggregate demand indicates that consumers want or need a. more goods and services. c. lower prices. b. fewer goods and services. d. tax relief.
a
Another term for quality is a. excellence. c. mediocrity. b. adequacy. d. non-conformance.
a
Any factor that causes changes in supply and demand will cause changes in a. price. c. utility. b. value. d. usefulness.
a
At the end of a feasibility study, owners/managers may decide to a. postpone the venture until a later time. b. pass the results along to competitors. c. run the study a second time. d. switch industries.
a
Bernard's business is more successful than his competitors' because he is innovative, which gives him a a. competitive advantage. c. creative destruction. b. creative advantage. d. competitive destruction.
a
During which phase of the business cycle are industries and businesses producing and selling goods at their maximum? a. Peak c. Trough b. Expansion d. Contraction
a
Governments try to improve the economy during an economic slump by increasing the a. amount of money in circulation. c. taxes consumers pay. b. prime interest rate. d. prices producers charge customers.
a
Gross domestic product that has been adjusted for inflation is known as a. real GDP. c. aggregate demand. b. GDP per capita. d. capital goods.
a
How are prices used in our economy? a. To ration limited resources c. To encourage excess supply b. To provide equilibrium in the market d. To encourage excess demand
a
How can economists account for differences in prices and currency between countries? a. Adjust for purchasing power b. Use a price deflator c. Avoid counting intermediate products d. Only compare GDP data within a country rather than between countries
a
How do producers answer the economic question of what to produce in a market economy? a. They produce products that are the most profitable. b. They produce products that provide the least incentives. c. They produce products that cost them the most to produce. d. They produce products for which they have the most information.
a
How does increased business productivity benefit consumers? a. More goods and services become available, so prices go down. b. More goods and services become available, so prices go up. c. Costs of labor and prices increase, so inflation goes up. d. The gross domestic product goes down, so inflation goes up.
a
How much a consumer is willing to pay for a product depends partly on the consumer's opinion of the product's a. value. c. efficiency. b. production costs. d. target market.
a
If a company develops a new product, method, strategy, or process, it is known as a(n) a. innovation. c. reinvention. b. creative output. d. connection
a
In calculating GDP, economists try to avoid double counting because it would a. inflate the value of GDP. c. cause legal problems. b. increase the price of products. d. lower the standard of living.
a
Inflation has driven up prices at Allen's business, forcing him to reprint all his price lists and send notices out to clients. These expenses are known as a. menu costs. c. sampling errors. b. price indexes. d. commodities.
a
Jerry bought a new bicycle with special tires. In economic terms, the tires on this bike are considered a. intermediate products. c. accessory items. b. capital goods. d. uncounted production.
a
Long-term unemployment may affect the nation by a. increasing poverty. c. lowering crime rates. b. increasing volunteerism. d. lowering the value of currency.
a
Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. Which of the following describes the quantity that Marcy is prepared to buy: a. Demand c. Supply b. Elasticity d. Market price
a
Marginal cost is inversely related to a. marginal product. b. marginal revenue. c. total revenue. d. total cost.
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Maximum profit is achieved when a. marginal revenue equals marginal cost. b. there is no perfect competition. c. marginal revenue equals total revenue. d. there are negative returns.
a
Prices set higher than the equilibrium price will result in a. excess supply. c. decreased supply. b. excess demand. d. increased profits.
a
Q = f(L,K) is an equation that expresses the __________ function. a. production b. marginal c. capital d. input
a
Quinn always asks questions and learns as much as she can at work. As a result, she often has innovative ideas. Quinn demonstrates a. curiosity. c. risk-taking ability. b. flexibility. d. determination.
a
Research and development speed up production by a. simplifying existing products. b. providing employees with adequate job training. c. limiting inflation. d. reviewing company goals with employees.
a
The U.S. government aims to keep inflation at two percent. This is called a. inflation targeting. c. deflation. b. hyperinflation. d. price stability.
a
The biggest traders of currency on the foreign exchange market are a. commercial and investment banks. b. businesses and corporations. c. governments. d. individuals.
a
The country of Callisto is experiencing an economic contraction. Trade and economic activity have decreased, and GDP has fallen over the past six months. Callisto is most likely to be experiencing a(n) a. recession. c. peak. b. depression. d. expansion
a
The degree of unionization in the United States varies based on a business's a. type of industry and geographical location. b. type of industry and use of pressure strategies. c. geographical location and use of pressure strategies. d. geographical location and level of union organization.
a
The equipment, ingredients, and employee labor at a restaurant are all a. inputs. c. productivity. b. objectives. d. mass production.
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The financial section of a feasibility study must include sources of a. funding. b. materials. c. staffing. d. technology.
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The first step in determining financials for a feasibility study is to a. create a budget for start-up costs. b. estimate operating expenses. c. list all sources of funding. d. estimate expected revenue.
a
The main goal of inflation targeting is a. price stability. c. an increase in the money supply. b. deflation. d. a decrease in the inflation rate.
a
The main result of inflation is a. reducing the purchasing power of the dollar. b. making everyday products unaffordable. c. pushing most prices down. d. increasing consumer demand.
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The tomatoes that a farm produces are considered the farm's a. outputs. b. labor. c. capital. d. inputs.
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The top of a business cycle is known as the a. peak. c. expansion. b. trough. d. contraction.
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The total quantity of money existing in a nation at one time is known as the a. money supply. c. dividends. b. aggregate demand. d. gross domestic product.
a
The written description of your proposed venture should be a. detailed. b. as short as possible. c. completed at the end of the study. d. persuasive.
a
Ups and downs in the level of economic activity over a period of time are called a(n) a. business cycle. c. economic growth. b. economic system. d. inventory level.
a
What exists when producers produce more than buyers are willing and able to buy? a. Excess supply c. Normal price b. Equilibrium price d. Excess demand
a
What will probably result if aggregate demand continues to grow, and production cannot meet the demand? a. Inflation c. Trough b. Depression d. Decreased production
a
When an economy uses all of its labor resources in the most efficient way possible, it has achieved a. full employment. c. structural unemployment. b. minimal unemployment. d. classical employment.
a
When an unsettling international event occurs, it can cause traders to feel fearful and buy only currencies that are considered strong and stable. These currencies are often called a. "safe havens." b. spots. c. futures. d. base currencies.
a
When inflation is out of control, consumers do not a. save and invest as much as they should. b. buy the amount of goods they should. c. purchase imports from other countries. d. join labor unions at work.
a
When less expensive substitutes for a product are readily available, then demand for that product is likely to be more a. elastic. c. urgent. b. complementary. d. inelastic.
a
When the price of DVD players increases, the quantity of DVD players offered for sale will increase. This is an example of the law of a. supply. c. demand. b. cost of production. d. standardization.
a
When union members of Local 654 arrived at work today, they found a sign on the door stating that the business had closed temporarily, and the employees were not allowed to work. This is a pressure strategy known as a(n) a. lockout. b. injunction. c. boycott. d. strike vote.
a
Which of the following determines whether consumers can purchase goods or services: a. Buying power c. Competition b. Labor costs d. Production costs
a
Which of the following economic factors strengthens currency value: a. High interest rates b. A trade deficit c. High government debt d. Increased inflation
a
Which of the following factors may influence supply: a. Natural disasters c. Product utility b. Standard of living d. Number of consumers
a
Which of the following is a potential reason for structural unemployment a. A change in consumer preferences b. Increased competitiveness of main industries in the economy c. An overabundance of available jobs d. Policies of protectionism
a
Which of the following is a reason that businesses monitor inflation: a. To negotiate labor contracts c. To set inflation-targeting goals b. To report to investors d. To avoid deflation
a
Which of the following is a reason to conduct a feasibility study: a. Considering a new product idea b. Hiring a new employee c. Ordering office supplies d. Choosing an advertising slogan
a
Which of the following is a shortcoming of GDP as an economic indicator: a. It does not provide meaningful information about a country's contributions to society. b. It does not measure the final market value of all goods and services. c. It is not a comprehensive measure of a country's economic output. d. It does not include purchases of durable goods by individuals.
a
Which of the following is a true statement regarding the Taguchi method: a. It requires a lot of time, effort, and money in the beginning. b. It improves business and manufacturing processes. c. It is a requirement for organizations to be certified in quality management. d. It is part of "Little Q" thinking.
a
Which of the following is an advantage of strong currency: a. It boosts consumer confidence. b. It makes exports more expensive for foreign consumers. c. It makes domestic businesses more attractive to foreign investors. d. It raises the cost of living.
a
Which of the following is an advantage to workers of having a union represent them: a. Fair treatment of employees b. Payment of union dues c. Democratic votes on issues d. Payment of wages during strikes
a
Which of the following is an example of the substitution effect: a. The price of laptops went up recently, so Francis decided to buy a tablet instead. b. The mayor recently instituted a price ceiling on the monthly rent that apartment landlords can charge their tenants. c. The demand price of a ticket at the local amusement park is exactly equal to its supply price. d. A candy bar costs $0.50, and the price of a pack of gum is $1.00. The relative price ratio is 1 to 2.
a
Which of the following is characteristic of an economy experiencing a short money supply: a. High unemployment c. Low tax levels b. Low interest rates d. High levels of borrowing
a
Which of the following is considered the worst of the seven wastes identified in lean production: a. Overproduction c. Inventory b. Defective products d. Over-processing
a
Which of the following might cause supply of a good to decrease: a. Government regulations c. Inelastic demand b. Sales skills d. Advertising
a
Which of the following occurs as a result of discoveries and innovation: a. New jobs are created. c. Money supply decreases. b. Economic actives contract. d. Production levels decrease.
a
Which of the following quality-control tools is used to analyze a sequence of events and find relationships within it: a. Flow chart c. Scatter diagram b. Statistical process control d. Check sheet
a
Which of the following quality-management tools helps managers to determine which problems need immediate attention: a. Pareto chart c. Statistical quality control b. House of quality matrix d. Cause-and-effect diagram
a
Which of the following statements regarding federations is true: a. A union federation consists of several national unions of different kinds. b. Only one union federation, the AFL-CIO, exists in the United States. c. Local union members pay dues directly to their union federation. d. Only industrial unions and professional unions can join a federation.
a
Why are unions a powerful force in business? a. They organize workers into a single bargaining unit and increase their bargaining power. b. They encourage non-striking employees to work for striking employees. c. They enable management to close businesses temporarily during labor conflicts. d. They increase the number of concessions that employees must make in negotiations.
a
Why should productivity be measured? a. To see whether the business's objectives are being met b. To locate new sources of inputs c. To determine the best ways to invest company profits d. To find new ways to meet customer needs
a
Why should productivity be measured? a. To see whether the business's objectives are being met b. To locate new sources of inputs c. To determine the best ways to invest company profits d. To ind new ways to meet customer needs
a
Yvonne wants her innovation to succeed, so she makes sure that there's a market for her innovation and that she has plenty of money and resources on hand. Which step of achieving innovation is Yvonne demonstrating? a. Reducing risk c. Being open-minded and flexible b. Making connections d. Researching
a
n the exchange-rate quotation USD/EUR = 0.73, USD is the __________ currency. a. base b. quote c. counter d. pegged
a
"Big Q" is also known as a. lean production. c. robust design. b. total quality management. d. concurrent engineering.
b
"Too much cash chasing too few goods" is a description of a. deflation. c. cost-push inflation. b. demand-pull inflation. d. hyperinflation.
b
A business manager realizes that the demand for his/her products now exceeds producers' capabilities, and producers have raised their prices to offset the high demand. Under these conditions, what phase of the business cycle should the manager begin to prepare for? a. Peak c. Trough b. Contraction d. Expansion
b
A factory that mass produces clothing increases productivity because it reduce a. employee wages. c. research and development costs. b. wasted resources. d. levels of management.
b
A factory that mass produces clothing increases productivity because it reduces a. employee wages. c. research and development costs. b. wasted resources. d. levels of management.
b
A focus on how things are done, rather than just outcomes, is known as a. lean production. c. continual improvement. b. process orientation. d. concurrent engineering.
b
A local neighborhood has many houses for sale at a low price, but demand for the houses is low. What kind of market most likely exists in the neighborhood? a. Seller's c. Inelastic b. Buyer's d. Discretionary
b
A positive effect that productivity has on a business is helping it to a. determine the health of the nation's economy. b. increase sales and profits. c. increase the standard of living. d. stop inflation.
b
All night-shift workers at a hotel have reported for work, but they are refusing to do their assigned jobs. What kind of pressure strategy is being used by the workers? a. Injunction b. Sit-down strike c. Lockout d. Sympathetic strike
b
Capital and labor are both examples of a. outputs. b. inputs. c. margins. d. products.
b
Corporations participate in the foreign exchange market so that they can a. achieve economic goals for the nation. b. complete transactions with foreign businesses smoothly. c. make a profit from currency speculation. d. purchase securities for their clients.
b
Demand for a good is more likely to be elastic when the good is a. essential. c. a necessity. b. a luxury. d. inexpensive.
b
Denise is in charge of administering surveys to get feedback from clients. Which source of innovation is Denise using? a. Demographics c. Trends b. Customer needs d. Experience
b
During difficult economic times, the unemployment rate is often a. unimportant. c. at its lowest. b. understated. d. not calculated.
b
During good economic times, the unemployment rate is often a. unknown. c. ignored. b. overstated. d. too low.
b
Even though Brad isn't a manager, his boss encourages him to give his input on issues affecting the company. Brad's boss is using a. motivation. c. specialization. b. participative decision making. d. quality of work life.
b
Even though Brad isn't a manager, his boss encourages him to give his input on issues affecting the company. Brad's boss is using a. motivation. c. specialization. b. participative decision making. d. quality of work life.
b
Excess demand is eliminated when the selling price reaches the point at which consumers are willing to buy __________ producers have to sell. a. fewer products than c. a larger amount than b. the same quantities that d. more expensive goods than
b
GDP figures for the U.S. include the value of a. goods that are not sold in the marketplace. b. all production for which money is exchanged and receipts are kept. c. transfer payments. d. transactions for which no receipts are kept.
b
George agreed to paint Joe's car for him and asked to be paid in cash so that there would be no record of the transaction. The money George earned is part of a. nonresidential investment. c. transfer payments. b. the underground economy. d. uncounted production.
b
If you divide the change in total revenue by the change in quantity sold, you'll find a. total revenue. b. marginal revenue. c. total cost. d. marginal product.
b
In the exchange-rate quotation GBP/JPY = 171.93, JPY is the __________ currency. a. strong b. quote c. base d. free-floating
b
Lack of standardization occurs when a. employees don't understand how to use a machine or tool. b. tasks and processes are done differently every time. c. products are complex and difficult to assemble. d. team members do not get along with each other.
b
Members of Local 999 have refused to buy products made by their company. This is an example of a. picketing. b. boycotting. c. striking. d. ratifying.
b
Most businesses strive to supply goods and services in direct proportion to a. supply. c. cost of production. b. demand. d. standard of living.
b
Mr. Barnes has bought several rental properties. The money Mr. Barnes spent to buy these buildings would be included in which category of GDP? a. Government purchases of goods and services b. Gross private domestic investment c. Net exports of goods and services d. Personal consumption expenditures
b
One of the benefits of economic growth is that government a. will have fewer problems to solve. c. will not need to find trading partners. b. can carry out its activities more easily. d. can ensure workers of finding jobs.
b
One of the reasons that countries measure GDP is to a. investigate the types of goods and services they produce. b. compare their findings to other countries around the world. c. determine the quality of the goods and services they produce. d. calculate the distribution of wealth within their nations.
b
Owners/Managers should not conduct a feasibility study if they are a. considering a business expansion. b. certain the idea is feasible. c. not ready to start the venture. d. unsure about the idea.
b
People often buy goods and services in order to maintain the quality of life and general living conditions to which they are accustomed. This influence on demand is referred to as a. quality standards. c. personal selling. b. standard of living. d. quality control.
b
Some energy companies offer free electricity at night and on weekends because during those times a. supply and demand are equal. c. demand is greater than supply. b. supply is greater than demand. d. the substitution effect occurs.
b
The Consumer Price Index is used as a general indicator of inflation, rather than a specific measurement, because it a. measures only rural populations. b. represents about 87 percent of the population. c. contains a greater number of errors than most research studies. d. applies only to businesses.
b
The classical theory of unemployment states that unemployment begins when a. prices decrease. c. demand goes down. b. wages rise too high. d. spending goes up.
b
The final step in the process of conducting a feasibility study is a. writing a brief description of the project. b. presenting the study to the appropriate audience. c. reviewing your work carefully. d. assessing technical needs.
b
The organizational section of a feasibility study may include a. a brief description of the proposed project. b. biographical information about owners/managers. c. a list of computer software requirements. d. a recommendation of whether or not to proceed with the venture.
b
The production function explains the relationship between a. businesses and customers. b. inputs and outputs. c. cost and revenue. d. goods and services.
b
There are jobs available in Javier's town; however, none of the jobs are a good match for his skills and experience. This is an example of __________ unemployment. a. seasonal c. frictional b. structural d. technological
b
Tia always considers her employees' suggestions, even if their ideas are new or unusual. Tia demonstrates a. flexibility. c. creativity. b. open-mindedness. d. determination.
b
To be able to charge competitive prices in our economy, producers must combine resources and technologies to produce a. limited quantities of goods. c. more than consumers will buy. b. items at the lowest cost possible. d. items to sell at relative prices.
b
To be feasible, your venture must a. serve the greater public good. b. fulfill a need for the target market. c. create a new or improved product. d. be innovative.
b
Unemployment benefits can have a positive effect on the economy by a. raising prices. c. increasing tax revenue. b. stimulating demand. d. creating new jobs.
b
Union and management officials are meeting next week to determine the terms and conditions that will be provided to employees. This process is known as a. striking. b. collective bargaining. c. picketing. d. corporate campaigning.
b
What aspect of collective bargaining signals the successful end of negotiations? a. Union leaders and management have met to present their demands. b. Management and union leaders have reached a tentative agreement. c. Management and union leaders have completed their research on the issues. d. A mediator has clarified the issues and offered suggestions to both sides.
b
What do consumers, producers, and resource owners need to have in order to make economic decisions? a. Economic incentives c. Rationing skills b. Information about prices d. Limited liability
b
What is a method that managers can use to motivate employees? a. Encouraging employees to specialize b. Offering performance-based financial rewards c. Investing in new technology d. Sharing customer information with employees
b
What is one factor that will determine how much a customer is willing to pay for a good or service? a. Production costs c. Rationing b. Buying power d. Incentive
b
What is the amount of money for which an item sells in the competitive marketplace? a. Value c. Market b. Price d. Utility
b
What is the primary responsibility of a national union? a. To encourage picketing and boycotting at the local level b. To assist in contract negotiations for all its local unions c. To elect local leaders who are involved in contract negotiations d. To provide financial support for political candidates who favor labor
b
What usually happens to the demand for a good or service when the price increases? a. It increases. c. It varies. b. It decreases. d. It stays the same.
b
When a large group of young people moves into a neighborhood, neighborhood businesses may try to develop new products to suit their needs. Which source of innovation does this illustrate? a. Experience c. Accidents b. Demographics d. Looking toward the past
b
When demand is greater than supply, a __________ often develops. a. buyer's market c. surplus b. seller's market d. price ceiling
b
When inflation is unexpected, it may be difficult for businesses to a. avoid a sudden turn into deflation. b. keep employees' wages on pace with rising prices. c. pay rising taxes. d. create a bigger money supply.
b
When innovators keep going even after they face failure, they demonstrate a. creativity. c. curiosity. b. resilience d. open-mindedness.
b
When prices don't change rapidly and the value of money is stable, it results in a. lower employment. c. cost-push inflation.b. consumer confidence. d. economic depression.
b
When producers are hopeful about the economic business outlook, they a. decrease their purchase of new goods. b. increase their investment in capital goods. c. decrease their inventory levels. d. increase their investment in savings.
b
When the economy is in a recession, most businesses respond by a. increasing wages. c. hiring more workers.b. reducing production. d. planning to expand.
b
Which of the following describes inelastic demand: a. Limited to luxury goods c. Fluctuating b. Not affected by price change d. Variable
b
Which of the following is a category of innovation: a. Psychological c. Piloting b. Product d. Physical
b
Which of the following is a disadvantage of strong currency: a. It lowers global opinion of the domestic economy. b. It creates a drop in export sales. c. It makes imports cheaper. d. It attracts foreign travelers.
b
Which of the following is a political influence that can affect currency value: a. Low levels of inflation b. Change in executive leadership c. Tax increases or cuts d. Overall attitude toward the market
b
Which of the following is a true statement regarding hyperinflation's effect on businesses: a. Hyperinflation is good for businesses because prices go up. b. Hyperinflation makes running a business more difficult and unpredictable. c. Hyperinflation lowers interest rates, making business expansion easier. d. Hyperinflation raises the value of the products a business exports.
b
Which of the following is an advantage of weak currency: a. It makes buying imports cheaper. b. It boosts exports. c. It inhibits business expansion into foreign markets. d. It improves global perception of the domestic economy.
b
Which of the following is an example of a change in the relative price ratio when the original price of red apples is 60¢ per pound and the original price of green apples is 80¢ per pound: a. Red apples @ 30¢ per pound; green apples @ 40¢ per pound b. Red apples @ 90¢ per pound; green apples @ 80¢ per pound c. Red apples @ 45¢ per pound; green apples @ 60¢ per pound d. Red apples @ $1.20 per pound; green apples @ $1.60 per pound
b
Which of the following is characteristic of a seller's market: a. Small demand c. Low profits b. High prices d. Large supply
b
Which of the following labor issues is most affected by the use of technology: a. Wages b. Job security c. Union security d. Benefits
b
Which of the following quality-control methods improves quality by saving time and allowing potential problems to be caught earlier in the product design and development process: a. House of quality matrix c. Lean production b. Concurrent engineering d. Pareto
b
Which of the following quality-control tools is a graphical representation of two variables that is used to determine cause and effect: a. Histogram c. Check sheet b. Scatter diagram d. Flow chart
b
Which of the following quality-management tools helps managers to determine whether or not a product meets customer needs: a. Flow chart c. Scatter diagram b. House of quality matrix d. Check sheet
b
Which type of innovation relies on a significant change in thinking? a. Product c. Psychological b. Paradigm d. Process
b
Why should a businessperson understand business cycles? a. To prevent the cycles from happening b. To make plans that will help to level out cycles c. To determine the cause of each cycle d. To predict the exact beginning and end of cycles
b
With each employee that a company hires, its marginal product is greater. Which stage of production is this company in? a. Third b. First c. Fourth d. Second
b
n one day of selling pizzas, a pizza parlor takes in $1,500. This is the pizza parlor's a. total cost. b. total revenue. c. diminishing returns. d. marginal product.
b
A 12-screen movie theater recently opened in your neighborhood. Just a couple of months after it opened for business, the old single-screen drive-in movie theater nearby went out of business. This is an example of a. competitive advantage. c. creative destruction. b. creative advantage. d. competitive destruction.
c
A benefit to producers and consumers of a growing economy is that it provides a. workers with guaranteed employment. c. a higher standard of living. b. an increase in government control. d. solutions to international problems.
c
A business's chain of command can be found in its a. project description. b. market analysis. c. organizational chart. d. technical needs section.
c
A company gets ideas by reading trade publications and attending trade shows. What source of innovation is this company using? a. Experience c. Observations b. Demographics d. Accidents
c
A factory produces 20 parts with two employees. With three employees, it produces 45 parts. What is its marginal product? a. 40 parts b. 20 parts c. 25 parts d. 65 parts
c
A restaurant's total cost of selling eight hamburgers is $10.00. Its total cost of selling nine hamburgers is $11.00. What is the marginal cost? a. $21.00 b. $10.00 c. $1.00 d. $11.00
c
According to the Keynesian theory of unemployment, the best solution for unemployment is to a. keep prices the same. c. increase demand.b. increase inflation. d. cut wages.
c
An advantage to companies of unionization is a. more fringe benefits. b. promotion based on seniority. c. assistance in recruitment. d. union assistance in decision making.
c
An exchange rate indicates one currency's value in relation to a. an average of all world currencies. b. its value from a year ago. c. another currency. d. the U.S. dollar.
c
As a favor, Felicia agreed to clean the house for her mother each week. In terms of GDP, the work Felicia does would be part of a. the underground economy. c. uncounted production. b. residential investment. d. total output.
c
Asia's company comes up with a new method to manufacture its product that saves time, money, and effort. This is known as __________ innovation. a. product c. process b. paradigm d. positioning
c
Currency speculation is risky because a. predicting currency values is relatively easy. b. it is a practice very few traders participate in. c. it can lead to high inflation. d. it can be extremely profitable.
c
During which phase of the business cycle would there most likely be shortages of workers in certain skill areas? a. Trough c. Peak b. Expansion d. Contraction
c
Even though gasoline prices increased 15 cents per gallon as the result of the new gas tax, Alice continued to buy gas so that she could make her 20-mile drive to work. This is an example of what type of demand? a. Discretionary c. Inelastic b. Elastic d. Complementary
c
Excess demand and excess supply cause changes in a. price index. c. market price. b. price determination. d. relative price ratio.
c
Feasibility studies can help owners/managers to determine a. what their competitors will do. b. where to find good prices on raw materials. c. the best time to start a project or venture. d. the best place to recruit new employees.
c
High levels of unemployment and business failures occur during what phase of the business cycle? a. Peak c. Trough b. Expansion d. Contraction
c
Hiring a professional to conduct your feasibility study can a. guarantee profit. b. be very inexpensive. c. reduce bias. d. create demand.
c
If a company's marginal revenue is always $6.00, what does the marginal cost have to be for the company to earn the maximum amount of profit? a. $5.00 b. $12.00 c. $6.00 d. $8.00
c
If you multiply price by quantity sold, you'll find a. marginal revenue. b. marginal cost. c. total revenue. d. total cost.
c
Inflation can occur when the economy is growing too fast. One of the ways the government might respond is by a. decreasing the discount rate for banks. c. spending less on goods and services. b. making tax cuts. d. lowering the prime interest rate.
c
Lean production focuses on a. designing and developing quality products. b. condensing the product-development process. c. maximizing customer value while minimizing waste. d. supervising manufacturing processes to ensure efficiency.
c
Local 476 of the UAW walked off the job in support of Local 477 of the UAW, which was striking. This is known as a __________ strike. a. wildcat b. sit-down c. sympathetic d. jurisdictional
c
Long-term unemployment may affect an individual by a. building savings. c. eroding his/her skills. b. increasing protectionism. d. improving mental health.
c
Marc wants to figure out how much changes in price will affect his business's sales, so he pays attention to a. market price. c. elasticity. b. inelastic demand. d. elastic demand.
c
One reason why the supply of certain products has been eliminated is because of a. production methods. c. technology. b. buying power. d. elasticity.
c
One way that the productivity of a business can be measured is by a. determining the amount of time needed to gather all necessary inputs. b. calculating the total monetary costs of all inputs used. c. dividing the dollar value of total sales by the costs of making those sales. d. dividing the number of products made by the cost of distributing those items.
c
Pegged currency is also known as __________ currency. a. weak b. risky c. fixed d. free-floating
c
Sharing business goals and objectives with workers is a method of increasing productivity through a. motivation. c. communication. b. mass production. d. specialization.
c
Supervising business and manufacturing processes to ensure quality and efficiency is a quality-control method known as a. concurrent engineering. c. process performance management. b. statistical process control. d. the Taguchi method.
c
Technological unemployment often results in a. increased consumer demand. c. a rearrangement of human resources. b. seasonal unemployment. d. decreased productivity.
c
The United Association of Plumbers and Pipe-fitters is an example of a(n) a. professional union. b. union federation. c. craft/trade union. d. industrial union.
c
The amount and value of outputs produced from set amounts of resources are known as a. inputs. c. productivity. b. objectives. d. mass production.
c
The bottom of the business cycle is called a(n) a. peak. c. trough. b. expansion. d. depression.
c
The economy of the country of Swizzle-land is undergoing rapid changes. Unemployment is low, consumer spending is high, and factories are increasing their production capabilities. Which phase of the business cycle is Swizzle-land in? a. Peak c. Expansion b. Trough d. Contraction
c
The government can restrict the low of money by a. increasing purchases. c. raising taxes. b. lowering interest rates. d. increasing employment.
c
The technical or logistical section of the feasibility study includes information about a. potential profitability. b. chain of command. c. where the work will happen. d. what the target market wants.
c
The unemployment rate is a(n) __________ indicator a. coincident c. lagging b. irrelevant d. leading
c
To reduce the chance of investigations and orders to cease production, businesses should a. purchase the most up-to-date technology available. b. specialize. c. adhere to government regulations. d. lobby members of Congress.
c
Unemployment affects the economy by a. raising wages. c. reducing demand and spending. b. forcing businesses to shut down. d. increasing production.
c
Union members join up at what level of a union? a. International b. Federation c. Local d. National
c
What action expands economic actives? a. Increasing the unemployment rate b. Decreasing the purchase of durable goods c. Increasing inventory levels d. Decreasing investments in capital goods
c
What are the incentives in our economy that encourage producers to change and reallocate their resources? a. Stocks c. Profits b. Consumers d. Expansions
c
What category of GDP would include the money Kathy's family pays to the state university for her college tuition? a. Gross private domestic investment b. Government purchases of goods and services c. Personal consumption expenditures d. Net exports of goods and services
c
What do producers often do when supply is greater than demand? a. Increase prices c. Lower prices b. Increase quality d. Lower quality
c
What might businesses do if they expect prices to increase substantially in the future? a. Ship more products to stores c. Keep products off the market b. Increase production now d. Encourage consumers to buy
c
When supply is greater than demand, a __________ often develops. a. shortage c. buyer's market b. price ceiling d. seller's market
c
Which of the following factors characterizes the growth phase of business cycles: a. Consumers are putting more money into savings. b. Demand for resources exceeds their availability. c. Consumers and producers are borrowing more money. d. Producers are reducing their purchases of new goods.
c
Which of the following is a category of prices measured by the Producer Price Index: a. Apparel c. Intermediate goods b. Food and beverages d. Services
c
Which of the following is a disadvantage of weak currency: a. It reduces business profits. b. It negatively affects the balance of trade. c. It makes acquiring foreign companies more expensive. d. It makes buying imports less expensive.
c
Which of the following is a method for gathering data from potential customers during the market analysis portion of a feasibility study: a. Research and development b. SWOT analysis c. Social media surveys d. Profitability analysis
c
Which of the following is a reason for pegging currency: a. To "let the market decide" b. To weaken another country's currency c. To stabilize currency d. To impede trade
c
Which of the following is a reason why innovation is important: a. Innovation ensures a business will succeed. b. Innovation leads to creativity. c. Innovation helps the economy. d. Innovation eliminates competition.
c
Which of the following is a true statement about feasibility studies: a. They are inexpensive to conduct. b. They are especially important for government projects. c. They are used by businesses in every industry. d. They are not useful for nonprofit organizations.
c
Which of the following is a true statement about the foreign exchange market: a. It is open three days a week. b. It operates only within the United States. c. It is a decentralized market. d. It is the world's second largest financial market.
c
Which of the following is a true statement regarding inflation's effects on the economy: a. Inflation hits gas prices before anything else. b. Interest rates influence the inflation rate. c. Inflation does not affect everyone equally. d. The effects of inflation are worse for businesses than for individuals.
c
Which of the following is a true statement regarding inflation: a. It is always caused by consumer demand. b. It harms businesses and the economy. c. It is a general trend in which some prices may go down. d. It does not affect everyone in the economy.
c
Which of the following is a widely used set of quality-management standards: a. ISO 1000 c. ISO 9000 b. ISO 31000 d. ISO 8000
c
Which of the following is another name for a bar graph: a. Flow chart c. Histogram b. House of quality matrix d. Check sheet
c
Which of the following is considered an external cause of business cycles: a. Money supply c. Climatic changes b. Aggregate demand d. Inventory levels
c
Which of the following is true of marginal product: a. It cannot be negative. b. It increases as long as inputs are added. c. It will eventually decrease as inputs are added. d. It is found by multiplying price by quantity.
c
Which of the following would provide you with information about the health of the U.S. economy: a. Population data c. Gross domestic product b. Economic order quantity d. Medium of exchange
c
Which type of business is known for often being the most innovative? a. Old businesses c. Small businesses b. New businesses d. Large businesses
c
Who gets the goods and services produced in our economy? a. Whoever is most efficient b. Whoever has the least costs c. Whoever is willing and able to pay the price d. Whoever obtains the most information and incentives
c
Why do unions and management experience conflicts? a. Unions want to close businesses and try to achieve that goal through strikes, boycotts, and corporate campaigns. b. They both want to close businesses and have similar ideas about how to achieve that goal. c. They both want to keep the business operating but have different ideas about how to reach that goal. d. Management wants to keep the business operating and has ideas similar to those of unions about how to do that.
c
Why is deflation bad for the economy? a. It encourages too much spending. b. It causes shortages of goods. c. It reduces output and can lead to layoffs. d. It raises prices for both consumers and businesses.
c
Why is the producivity of service businesses measured diferently than that of manufacturing businesses? a. Service businesses are less eicient than manufacturers. b. Manufacturers measure their producivity on a regular basis. c. Service businesses are concerned about the appropriateness of their products. d. Manufacturers produce intangible goods.
c
Why is the productivity of service businesses measured differently than that of manufacturing businesses? a. Service businesses are less efficient than manufacturers. b. Manufacturers measure their productivity on a regular basis. c. Service businesses are concerned about the appropriateness of their products. d. Manufacturers produce intangible goods.
c
Workers in your company have decided to join a union. As a member of management, which form of union representation will you encourage? a. Agency shop b. Closed shop c. Open shop d. Union shop
c
"Little Q" is a __________ way of thinking. a. modern b. long-term c. strategic d. tactical
d
A bakery hires more employees and, at first, the number of baked goods it produces rises quite quickly. However, as more and more employees are hired, it starts to slow down. This is an example of the law of __________ returns. a. growing b. increasing c. negligible d. diminishing
d
A company decides to start marketing its health food bar as a candy bar. Which type of innovation is taking place? a. Practical c. Product b. Paradigm d. Positioning
d
A country's gross domestic product is expressed in a. the number of items produced. c. percentages. b. the number of transfer payments. d. dollars.
d
A disadvantage to companies of unionization is that a. the cost of union dues can be expensive. b. the union discourages recruitment. c. the labor contract is insecure. d. job promotions are based on seniority rather than ability.
d
A fishbone diagram is a quality-control tool used to a. design products. c. determine a product's quality. b. evaluate business processes. d. identify cause and effect.
d
A key tool in statistical process control is the a. cause-and-effect diagram. c. check sheet. b. scatter diagram. d. control chart.
d
A store sells T-shirts for $10. Which of the following would be the most likely to occur if all other factors remain the same, and there is a demand for the T-shirts at $10: a. If the price is raised, business profits will go up. b. If the price is lowered, business profits will go down. c. If the price is raised, the volume of sales will go up. d. If the price is lowered, the volume of sales will go up.
d
A union worker who is just beginning in the occupation is referred to as a(n) a. assistant. b. master. c. journeyman. d. apprentice.
d
A well-executed feasibility study a. doesn't exceed three pages. b. is rigid in its scope. c. tells owners/managers what decision to make. d. is articulate.
d
Actors and athletes belong to what types of unions? a. Industrial unions b. Craft unions c. Trade unions d. Professional unions
d
After a mild, dry winter, the supply of sleds should be __________ than demanded. Therefore, the price would be __________. a. less; increased c. greater; increased b. less; decreased d. greater; decreased
d
Almost every major economy in the world has __________ currency. a. counter b. strong c. pegged d. free-floating
d
An exchange-rate quotation that uses domestic currency as the base currency is known as a(n) __________ quotation. a. indirect b. home c. free-floating d. direct
d
Anri is known at work for being able to generate unique ideas, approaches, and solutions to her business's problems. Anri possesses a. curiosity. c. resilience. b. flexibility. d. creativity.
d
David, an assembly-line worker, has a sheet of paper at his station to record the number of defective products he finds during his shift. This paper is called a a. control chart. c. Pareto chart. b. house of quality matrix. d. check sheet.
d
Failure to focus on quality management may result in a. process orientation. c. customer satisfaction. b. "Little Q" thinking. d. product recalls.
d
Fair salaries and wages, competitive benefits, and safe and healthful working conditions are all important in creating a good a. standard of living. c. division of labor b. competitive advantage. d. quality of work life.
d
Fair salaries and wages, competitive benefits, and safe and healthful working conditions are all important in creating a good a. standard of living. c. division of labor. b. competitive advantage. d. quality of work life.
d
For 20 years, Don owned a small grocery store. When several big box stores that sell groceries at discounted prices moved into the area, Don's sales declined, and he had to close his business. Which of the factors that affect supply affected Don's business? a. Natural disasters c. Labor demands b. Government regulation d. Number of producers
d
Forwards and options are types of a. interbank markets. b. counter currencies. c. exchange-rate quotations. d. trading instruments.
d
Governments participate in the foreign exchange market through their a. judicial systems. b. stock markets. c. elected representatives. d. central banks.
d
Gross domestic product per capita is a measure of a. everything a country produces within its borders. b. everything a country imports from foreign countries. c. everything a country exports. d. the average worker's productivity.
d
Honda is a Japanese firm that produces some of its cars in Ohio. In calculating GDP, the Ohio-produced cars would be part of a. GDP for Japan. c. the underground economy. b. double counting. d. GDP for the U.S.
d
How long do most business cycles last? a. Two full years c. At least 10 years b. Two consecutive quarters d. Varying lengths of time
d
If aggregate demand is rising, businesses and industries will tend to a. ire employees. c. cut employee wages. b. decrease production. d. increase production.
d
Inflation influences the balance of trade between countries through its effect on a. menu costs. c. the availability of commodities. b. the Consumer Price Index. d. currency exchange rates.
d
Janine works at the git-wrapping booth in the local mall. During a typical eight-hour work day, Janine wraps 52 gifts. What is her productivity rate? a. 17.3 gifts per hour . c. 7.0 gifts per hour b. 2.2 gifts per hour . d. 6.5 gifts per hour
d
Janine works at the git-wrapping booth in the local mall. During a typical eight-hour work day, Janine wraps 52 gifts. What is her productivity rate? a. 17.3 gifts per hour c. 7.0 gifts per hour b. 2.2 gifts per hour d. 6.5 gifts per hour
d
Jeremy has $15,000 to spend on a new car. He found a car that cost $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand for this car exist? a. Yes, because consumers like the car but don't buy it. b. Yes, because consumers think the car is worth $12,000. c. No, because consumers do not have the buying power to purchase this car. d. No, because consumers are not willing to pay the price being asked for this car.
d
Limited commodities can cause a. price stability. c. demand-pull inflation. b. cost-push inflation. d. inflation targeting.
d
Mykel accepts that the product he designed may not be successful. Mykel possesses a. curiosity. c. problem-solving skills. b. creativity. d. risk-taking ability.
d
Orlando changes the price of one of his products, and this price change leads to a major change in the number of people who purchase the product. This means that demand for Orlando's product is a. constant. c. competitive. b. inelastic. d. elastic.
d
Susan's father receives veterans' benefits, and her grandmother gets Social Security. Are these payments counted in GDP? a. Yes, these are government purchases. b. Yes, these funds are for personal consumption. c. No, the recipients produce goods and services. d. No, these are transfer payments.
d
The Keynesian theory of unemployment states that unemployment begins when a. spending goes up. c. prices decrease. b. demand goes down. d. businesses cut wages.
d
The end goal of a feasibility study is to a. determine the best marketing tactics for the venture. b. convince investors to commit money to the venture. c. ensure that competitors cannot steal the idea for the venture. d. allow owners/managers to make a sound decision about the venture.
d
The final task in the financial section of a feasibility study is performing a(n) a. annual review. b. organizational assessment. c. estimate of revenues. d. profitability analysis.
d
The period of time during the business cycle when production and employment increase is called a(n) a. peak. c. trough. b. contraction. d. expansion.
d
The poor economy is causing consumer demand and spending to go down. As a result, companies aren't hiring. This is called __________ unemployment. a. classical c. frictional b. structural d. cyclical
d
The price of complementary products has an effect on a. elasticity. c. utility. b. supply. d. demand.
d
The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is a. quantity demanded. c. demand. b. quantity sold. d. supply.
d
This year's nominal GDP is higher than last year's even though production did not increase. The higher GDP figure is the result of a. a trade deficit. c. increased imports. b. unemployment. d. inflation.
d
Though employees who work for auto companies hold a variety of different jobs, they may all belong to the same union—the United Auto Workers. This is an example of a(n) __________ union. a. professional b. trade c. craft d. industrial
d
Unemployment can have a positive effect on individuals by a. reducing levels of poverty. b. lowering prices of goods and services. c. stimulating demand in the economy. d. encouraging them to create their own businesses.
d
Unions that do not belong to a federation are known as __________ unions. a. industrial b. international c. local d. independent
d
Which of the following formulas would you use to find marginal cost: a. ∆TR ÷ ∆Q b. P × Q c. f(L,K) d. ∆TC ÷ ∆O
d
Which of the following groups does technological unemployment usually affect the most: a. Mechanics c. Farmers b. White-collar professionals d. Unskilled laborers
d
Which of the following is a benefit of low, controlled inflation: a. The reduced purchasing power of the dollar b. The scarcity of certain commodities c. The strength of labor unions d. The government's ability to adjust interest rates
d
Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks: a. Incentives c. Inflated price b. Excess demand d. Relative price
d
Which of the following is a common risk of innovation: a. Economic downturn c. Competitive advantage b. Paradigm shift d. Loss of jobs
d
Which of the following is a factor affecting a product's utility to the individual customer: a. Number of producers c. Price of other goods b. Number of consumers d. Consumer's age
d
Which of the following is a step a business can take to achieve innovation: a. Discourage employee suggestions. c. Maximize risk. b. Do things "by the book." d. Research.
d
Which of the following is a true statement regarding the Consumer Price Index: a. It applies only to businesses. b. It gauges the costs of compensating employees. c. It does not measure the prices of health care. d. It measures inflation based on a representative section of consumer products.
d
Which of the following is an example of using capital investment to increase productivity? a. Renegotiating a supplier's contract b. Making suggestions to improve the organization c. Giving performance-based bonuses d. Purchasing new computers
d
Which of the following is usually the first effect that unemployment has on an individual or family: a. Higher crime rates c. Economic recession b. Less tax revenue d. Lowered standard of living
d
Which of the following types of legal union representation is preferred by unions in states without right-to-work laws: a. Closed shops b. Agency shops c. Open shops d. Union shops
d
Which stage of production involves diminishing returns? a. Fourth b. First c. Third d. Second
d
Which type of inflation is harmful to the economy? a. Negative inflation c. Cost-push inflation b. Demand-pull inflation d. Hyperinflation
d
Which type of unemployment is voluntary? a. Cyclical unemployment c. Structural unemployment b. Seasonal unemployment d. Frictional unemployment
d
Why are better trained and educated workers often more productive? a. They are more likely to become managers. b. They are less likely to take vacation and sick days. c. They tend to have a higher gross domestic product per capita. d. They tend to be more organized and able to manage their time wisely.
d
Your business is selling more and more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months? a. The price will decrease, and supply will increase. b. The price will decrease, and supply will decrease. c. The price will increase, and supply will decrease. d. The price will increase, and supply will increase.
d
Your firm is considering producing a new product. Research shows that there is definitely a demand for the product and that there are currently only two other producers of this product. Which of the following might prevent your firm from producing this product: a. Promotional considerations c. Consumer expectations b. Product utility d. Cost of production
d
Your total revenue for one product is $10.00. Your total revenue for two products is $20.00. What is your marginal revenue? a. $30.00 b.$20.00 c. $2.00 d. $10.00
d
