Intro to Busn, Chapter 1

Which of the following is the BEST definition of an oligopoly?

A market or industry characterized by a handful of sellers with the power to influence the prices of their products

Which of the following is the BEST definition of monopolistic competition?

A market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors

Which of the following is the BEST definition of a natural monopoly?

A market or industry where one company can most efficiently supply all needed goods or services

Which of the following defines the term market?

A method for the exchange of goods or services that takes place between two parties

Which of the following best describes an economic system?

A nation's system for allocating its resources among its citizens

A recession is BEST characterized by which of the following?

A period of decreased aggregate output that results in the need for fewer employees

is a market or industry characterized by a handful of sellers with the power to influence the prices of their products.

An oligopoly

Which of the following describes the pattern of expansions and contractions within an economy over the short term?

Business cycle

Which of the following is a factor of​ production?

Capital

Which of the following is NOT an element of the external environment that would affect a business?

Corporate culture

To determine the for a given country for a given year, you need to know the total value of all goods and services a national economy produces during one year using its domestic factors of production plus its population.

GDP per capita

Which of the following is an example of an economic indicator?

Gross domestic product

Which of the following statements about a market economy is TRUE?

It aims to create shared value between businesses and customers.

Jayna is a scientist who conducts cancer research and helps to create new drugs for an established global pharmaceutical company. Her job requires the use of specialized microscopes that cost thousands of dollars. Referring to the scenario above, which factor of production does Jayna herself represent?

Labor

Which of the following would explain why a company would ship more of its products by truck when the price of diesel fuel decreases but park those same trucks as the fuel price increases?

Law of Demand

Because the price of grapes has risen steadily in recent years, Marco has decided to expand his vineyard so that he can offer more grapes to his buyers. Which of the following supports that Marco has made the right decision?

Law of Supply

Because the price of grapes has decreased steadily in recent years, Marco has decided to sell off some of his vineyard because he no longer needs to produce as much. Which of the following supports that Marco has made the right decision?

Law of demand

For which of the following is a fiscal policy used?

Managing a government's revenues

Which of the following scenarios BEST describes perfect​ competition?

Many small sellers offer identical products.

Which of the following describes the situation when the quantity of goods demanded matches the quantity of goods supplied?

Market price

Which of the following BEST defines the U.S. economic​ system?

Mixed market economy

Alison owns a coffee shop in a small city in which there are many similar establishments. She advertises that her coffee is the best in town because the coffee beans she roasts are fair trade​ certified, shade​ grown, and organic. Which degree of competition would this BEST​ describe?

Monopolistic competition

Which of the following is a characteristic of the economic environment?

Monopolistic competition

Which of the following terms refers to a market or industry in which there is only one producer that can singularly control the prices of its products?

Monopoly

is GDP measured in current dollars or with all components valued at current prices.

Nominal GDP

Which of the following facets of the external environment of business reflects the relationship between government and​ business?

Political-legal environment

To finance a new business and sustain that business throughout its life, companies need ___________ .

capital

The two basic forms of planned economies are​ _______ and​ _______.

communism; socialism

Ten years ago, Bryan took a risk and opened a pizza restaurant in his small hometown. He has successfully operated this restaurant—the only one in town—ever since. Earlier this year, one of his former employees opened a Pizza Pie franchise just a few blocks away, in a growing section of town. According to the above scenario, Bryan's has just increased.

competition

Which of the following is a measure of the prices of typical products purchased by consumers living in urban areas?

consumer price index

Which of the following indices measures inflation by examining changes in the prices of typical products purchased by consumers living in urban​ areas?

consumer price index (CPI)

The curve is a graph showing how many units of a product will be bought at different prices.

demand

When a buyer desires a good or service, and he has the financial means to pay for it, there is for the good or service.

demand

A severe economic downturn that lasts for several years is known as a(n) .

depression

In order to encourage people to spend more money and stimulate the​ economy, the government slashes the individual income tax​ rate, effectively putting more money in​ people's pockets. This is an example of the government exercising​ _______ policies.

fiscal

In the United States, the federal government uses to manage its revenues.

fiscal policies

A domestic company that works with suppliers or customers beyond its borders might be impacted by the __________ more quickly than a company that does not.

global business environment

The general price level of goods and services in a nation is steadily increasing. This is known as​ _______.

inflation

For sellers to sell goods or services and for buyers to purchase goods and services, a method for the exchange that takes place between the two parties, called a _________ , is used.

market

Jayna is a scientist who conducts cancer research and helps to create new drugs for an established global pharmaceutical company. Her job requires the use of specialized microscopes that cost thousands of dollars. Referring to the scenario above, which factor of production does the microscope represent?

physical resource

The state of Indiana sold off the management of the toll-road system it controlled to a foreign investor in a process known as _______.

privitization

is/are the difference between a business's revenues and its expenses.

profits

Under​ _______, the government owns and operates selected major industries such as​ transportation, communications, and​ banking, but smaller businesses are privately owned.

socialism

An economic system experiences stability when __________________.

the quantity of its goods and services is increasing at approximately the same percentage that its available amount of currency is increasing

Which of the following decisions demonstrates that an organization is being impacted by the sociocultural environment?

A restaurant decides to replace many of the processed food items on its menu in response to younger consumers' increased demand for organic offerings.

Which of the following is the BEST definition of socialism?

A system in which the government owns and operates only selected major sources of production and private ownership of smaller businesses is permitted

What is the definition of real GDP?

An adjusted GDP to account for changes in currency values and price changes

Which of the following is the BEST definition of private enterprise?

An economic system that allows individuals to pursue their own interests without undue government restriction

Never-Wet Basements developed a proprietary sump pump system, which it now sells to commercial and consumer buyers for a profit. In addition, the company offers discounted installation services to its customers.Referring to the above scenario, which of the following describes Never-Wet Basements?

Business

Which of the following is NOT one of the elements of a private enterprise​ system?

Capital

is a system that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive.

Capitalism

is a political system in which the government owns and operates all factors of production.

Communism

The executive of a national airline based in New Mexico wants to add flights to two different cities on the East Coast, but she is not sure how many seats to offer and at what prices. To better understand this relationship, which of the following should she review to BEST determine that information?

Demand and supply schedule

Which of the following comprises the external environment in which a company operates in proximity to its customers and gets its revenues?

Domestic business environment

If you were to consider demand and supply in terms of individual buyers and sellers, which of the following scenarios BEST indicates supply?

Drake wants to offer grooming services at the puppy training business he started last year, and he has the proper training, licensing, equipment, and space to do so.

is the principle that exchange rates are set so that the prices of similar products in different countries are about the same.

Purchasing power parity

is a planned economic system in which the government owns and operates only selected major sources of production.

Socialism

Which of the following is intended to limit the ups and downs of output and unemployment and to steady prices?

Stabilization policy

Which is an example of an information resource?

Stock market quote

Which of the following external environments would encompass a company's automatic billing system?

Technological environment

Which of the following is the BEST example of a shortage?

The demand for potatoes is greater than the amount of potatoes farmers can grow

Which of the following is the BEST definition of balance of trade?

The economic value of all the products that a country exports minus the economic value of all the products it imports

Which of the following is the BEST definition of aggregate output?

The total quantity of goods and services produced by an economic system during a given period

What would you need to determine the GDP per capita for a given country for a given year?

The total value of all goods and services a national economy produces during one year using its domestic factors of production plus its population

Which of the following is the BEST definition of gross national product?

The total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located

Gross domestic product would be BEST defined as which of the following?

The total value of all goods and services produced within a given period by a national economy through domestic factors of production

is the economic indicator that describes the level of joblessness among individuals who are actively taking steps to get a job.

Unemployment

Which of the following is the BEST description of​ deflation?

Widespread decreases in the prices of goods and services

Capital is _______________.

a means to finance a new business and sustain that business throughout its life

The economy in which the government owns and controls factors of production, such as labor, is best known as _______.

a planned economy

Characteristics such as information resources, demand and supply, and monopolistic competition determine the in which a business operates.

economic environment

Labor and capital are examples of .

factors of production

A government that wants to introduce a stimulus package in order to put more money into the economy needs to first put a(n) _______ in place.

monetary policy

The government raises taxes or sells bonds in order to acquire more money to pay back its creditors. This amount of money is an economic indicator known as ____________.

national debt

When a business is subject to local zoning that restricts the type of building it is allowed to construct and where it is allowed to construct it, the business is being affected by the_____________________ environment.

political-legal

A Midwestern city negotiates a deal with a company to operate its parking meter system. The city will receive a lump sum payment of several million​ dollars, and the company will have the rights to​ operate, maintain, and collect the revenue from the parking meters. This is an example of​ _______.

privatization

The measure of economic performance that compares how much a system produces versus the resources required to produce​ it, is known as​ _______.

productivity

The relationship between the amount of resources needed to produce a good and the number of goods produced is known as _______.

productivity

The number of people in the United States who are age​ 65+ is increasing​ rapidly, creating opportunities for products and services to meet the demands of an aging population. Which element of the external business environment does this population shift​ reflect?

sociocultural environment

An increase in both GDP and GDP per capita results in a subsequent increase in an economic system's _____________.

standard of living

The curve is a graph showing how many units of a product will be offered for sale at different prices.

supply

The owner of a local snowboard shop wants to know how many snowboards she would need to offer for sale at various price points, so you advise her to look at the __________________.

supply curve

When a fisherman catches more lobster than his local seafood buyers will purchase, he is faced with a(n) ____________________.

surplus

The domestic business environment is _____________.

the external environment in which a company operates in proximity to its customers and gets its revenues