chapter 1 bus 160 quiz 🍏

Which of the following is not a characteristic of an oligopoly? O a. The market actions of each seller can strongly affect other sellers. O b. There are few sellers. • c. Sizable investments are required to enter the market. • d. Any duplication of facilities is wasteful. • e. The seller has considerable control over price.

Any duplication of facilities is wasteful.

As computers gained popularity, the____ typewriters decreased along with the price. a equilibrium b. productivity of c. govemment regulation of d. monopoly associated with © e. demand for

Demand for

The producer price index is an accurate predictor of a. prime interest rates. B. Future changes in the consumer price index. • c. Internet business activity. O d.an individual's standard of living. • e. the level of unemployment.

Future changes in the consumer price index.

A price at which the demanded quantity is equal to the quantity supplied of that product is called the______price. a. customer b. market c. equality d. demand e.supply

Market

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a____ economy a. producer's b. planned c. command d. market e. product

Market

_____is a market situation (or industry) in which there are few sellers. • a. Pure competition • b. Natural monopoly • c. Monopolistic competition • d. Monopoly • e. Oligopoly

Oligopoly

In Adam Smith's view, which of the following is not the role of governent in business? a. Regulating business activity • b. Providing defense against foreign governments • c. Providing education • d. Furnishing public works • e. Ensuring internal order

Regulating business activity

According to economists, inflation is a. a general problem for countries with command economies. b. a general rise in the level of prices. c. unavoidable, and therefore something beyond the control of government. d. a general decrease in the level of prices. e. eliminated by the government.

a general rise in the level of prices.

The industrial revolution in the United States was born in a. around 1850 when Henry Ford began using the assembly line to produce automobiles. • b. in the late 1700s when American businesses began using the factory system. • c. the late 1990s with the invention of desktop computers. • d. in the 1960s with the invention of television and new advertising methods.

in the late 1700s when American businesses began using the factory system.

The purpose of specialization is to a. boost the morale of an employee because he or she is special. • b. relieve boredom. • c. reduce productivity. • d. make the nature of the work more general. • e. increase the efficiency of industrial workers.

increase the efficiency of industrial workers.

The rivalry among businesses for sales to potential customers a. is an unfair business practice. b. is a necessary part of a command economy. c. doesn't exist in the real world. • d. is referred to as competition. e. is typical in a communist nation

is referred to as competition.

Perfect competition is characterized by a. a few companies that control the market. • b. many buyers and few sellers. • c. few buyers and few sellers. • d. many buyers and many sellers. • e. few buyers and many sellers.

many buyers and many sellers.

The economic term used to describe the Federal Reserve's actions to determine the size of the supply of money in the nation and the level of interest rates is a. debt policy. b. monetary policy. • c. fiscal policy. • d. recovery technique. • e. recovery guideline.

monetary policy.

Public utilities are often referred to as O a. sole proprietorships. O b. oligopolies. • c. socialistic. • d. monopolies. O e. monopolistic competitors.

monopolies.

Although all casual clothing ultimately provides the same purpose, companies such as The Gap strive to make their brand seem unique from the many other brands available on the market. The market for casual clothing can best be characterized as a. a monopoly. b. a natural monopoly. c. monopolistic competition. d. an oligopoly. e. pure competition.

monopolistic competition

The total of all federal deficits in the United States is called the a. consumer debt. b. federal deficit. • c. fiscal debt. • d. economic debt. o e. nationa debt

nationa debt

When a firm's sales revenues are greater than its expenses, the firm has a • a. financial resource. • b. profit. • c. positive cash flow. d.loss. • e. factor of production.

profit.

The government uses tax dollars to a. increase consumer income • b. purchase resources and products needed to provide services. • c. purchase other nations. • d. invest in foreign bonds. • e. invest in foreign corporations.

purchase resources and products needed to provide services.

The ultimate objective of every firm, such as Apple and Starbucks, must be to a. sell either to other firms or to consumers. b. satisfy the needs of its customers. c. pay out money to cover the various expenses of doing business. • d.make it impossible to satisfy customers. • e. know that people generally buy a product and store it.

satisfy the needs of its customers.

Productivity can best be described as a. a country's total output. b. the efficiency of a company's operations. c. the average level of output per worker per year. d. the average level of output per worker per hour. e. economic growth in a country.

the average level of output per worker per hour.

Microeconomics is the study of a. the entire U.S. economy. •b. the national unemployment rate. c.productivity in other countries. d. the decisions made by individuals. e. global economies.

the decisions made by individuals.

Cultural diversity represents a. a business theory that is no longer valid. b. a statistical method used to project sales revenues and profits for global companies. c. the differences among people in a workforce. d. a religious issue that doesn't affect business organizations. e. a technical skill.

the differences among people in a workforce.

When consumers spend their money to purchase Samsung android phones or computers with an Intel processor, or when they discontinue buying such items as compact discs, they are telling resource a. what to produce. • b. when to produce. • c. for whom to produce. • d. to avoid faddish products. e. how to produce.

what to produce.

Capital or capital goods as recognized by economists would include all of the following except a. money. b. computer equipment. c. machinery. d. facilities. e. Crude oil

E. Crude oil

Which of the following is not a characteristic of the Great Depression? • a. It was a period of misery and human suffering. • b. People lost faith in business and its ability to satisfy society's needs. c. The government became less involved in business activities. • d. Stock prices decreased. e. There was a near collapse of the nation's economy.

The government became less involved in business activities.

If the demand for a product declines, what happens to the price of the product? a. The price stays the same. • b. The price increases. • c. The price decreases. • d. The market price will be maintained. • e. The equilibrium price will be maintained.

The price decreases.

In the United States, businesses are free to sell any legal product they want in any manner they desire as long as it does not violate any laws or ordinances. A business is also free to decide what to produce, how to produce it, and at what price to sell it. What type of economic system is employed in the United States? • a. The United States has a command economy. • b. The system of business in the United States is based on the concept of free enterprise. C. The United States has a socialist economic system because the government guarantees that a business will be successful. D. The United States has a mixed economy similar to the economic system in Sweden, Canada, O and Norway.

The system of business in the United States is based on the concept of free enterprise.

All of the following are characteristics of communist countries such as Cuba except

a. a society whose citizens together own all economic resources. b. all workers contribute to society according to their ability. c. intensive production of goods the government needs. d. frequent shortages of consumer goods. e. an adequate supply of consumer goods. e. an adequate supply of consumer goods.

Increased competition from firms in other nations is an example of the a. mixed environment. • b. global environment. c. command environment. • d.laissez-faire environment. • e. technological environment.

b. global environment.

Deflation a. is scheduled by the nation's economists to make economic corrections. b. is a general decrease in the level of prices. c. occurs only in command economies d. is a typical economic event in the U.S. economy. e. is characteristic of a mixed economy.

b. is a general decrease in the level of prices.

Fluctuations in a nation's economy are referred to as its a. business cycle. • b. economic upheaval. • c. recession period. • d. inflation problem. e. depression cycle.

business cycle.

Households provide all of the following resources to businesses except • a. buildings. • b. labor. • c. dividends. • d. capital. • e. land.

c. dividends.

Examples of command economies include • a. capitalism and socialism. • b. socialism and market economv. c. socialism and communism • d. communism and canitalism • e. socialism and tree enterprise.

c. socialism and communism

For a business, stakeholders represent a. lenders that have provided loans. • b. suppliers that have extended credit to the firm in search of profit for the firm. • c.all of the different people or groups who are affected by the business. • d. investors in the business. e. employees who work for the firm.

c.all of the different people or groups who are affected by the business.

Economists define a domestic product. • a. prosperity • b. repression • c.recession • d. trough e. recovery

c.recession

Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the_____stage of the business cycle. O a. trough • b. repression • c.recession • d. depression • e. prosperity

c.recession

The current technology environment • a. is not a concern for most firms that do business only in the United States. b. does not affect manufacturing firms. • c. is not as important as it was fifteen years ago. • d. changes the way business firms communicate with customer • e. doesn't change as often as it did fifteen years ago.

changes the way business firms communicate with customers

The total dollar value of all goods and services produced by all people within the boundaries of a country is called a. standard of living. • b. inflation factor. • c. gross domestic product. • d. gross national product. • e. productivity.

gross domestic product.

An example of a command economy is a. laissez-faire. b.communism c.oligopoly. d. mixed economy. e. capitalism.

communism

For the U.S. government to provide services, it collects revenue from • a. selling bonds to foreign governments. • b. only individuals in the form of taxes. • c.selling manufactured goods overseas. • d. both households and businesses in various forms of taxes. • e. only corporations in the form of taxes.

d. both households and businesses in various forms of taxes.