Business Exam

A couple constructs a decision matrix to select which charity will receive a $500 donation. Since "helping children" is the most important criteria to the couple, which of the following weights should it be assigned?

.60

Which of the following statements is true regarding a nation's unemployment rates

A nation always has a certain percentage of unemployed citizens at any given time.

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?

New pair of jeans

What often happens when a nation has a high unemployment rate?

The nation experiences an economic slowdown

The category of GDP called gross private domestic investment includes

all purchases of capital goods.

Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?

Concert Tickets

A group of entrepreneurs is trying to decide which of five new product ideas to select. Which tool can be used to help make the decision?

Decision Matrix

The U.S. government is offering a decrease in taxes to citizens who install solar panels on their homes. Using economic terms, how would you describe this incentive?

Financial and positive

Which of the following is a negative economic incentive:

High taxes on cigarettes

Which of the following is an economic activity:

Purchasing a candy bar

Why are human resources limited?

Some people are unable to work.

Which of the following is an example of a change in culture affecting the production of a good or service:

The "green movement" leads to an increase in demand for recycled products. Your Answers PREVNEXT

Which of the following is true when a potato farmer keeps some of the farm's potatoes for personal use:

The potatoes are not counted in the gross domestic product.

What is one reason why the overall unemployment rate understates the actual employment situation?

The rate reflects regional differences.

Why are resources considered limited?

There are not enough available so that everyone can have as much of them as desired.

A six-month decline in GDP is known as a

depression

In some states, it is against the law to sell alcohol on Sundays. This law was created to honor the Christian religious belief that Sunday is a special day of rest. This is an example of culture impacting the __________ of goods.

distribution

Vernon was the milkman in his neighborhood for 30 years. Then, supermarkets started selling milk right in the store, and Vernon's job became obsolete. Vernon is a victim of ___________ unemployment.

frictional

Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is

ice cream at Dairy Queen

A large number of underemployed workers indicates that there is a problem in the economy because underemployment means that

many people have stopped looking for a job

Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being sold as an effective refrigerator deodorizer. This is an example of ____________ innovation.

positioning

Which of the following does consumption rely on to provide goods and services:

producers

As the gross domestic product increases, it is easier for all levels of government to

reduce their spending

The gross domestic product (GDP) is calculated each year in the United States to determine

the health of the economy

Which of the following is an example of paradigm innovation:

Windows computer operating system