Buisness Exam

Economics

About scarcity & choices •Making decisions

The market's way of rationing limited resources, goods, and services to consumers in a market economy is through • Commissions • profits • incentives • prices

Commissions

Ongoing efforts within a hospitality operation to better meet or exceed guests expectations relates to the emphasis on: • cost control • continuous quality improvement • guest value determination analysis • cost minimization

Continuous quality

A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider? • Language variations • Currency fluctuations • Differences in laws • Opportunity costsCurrency Fluctuations

Currency Fluctuations

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 • Entrepreneurial discovery process • Business processes • Opportunity cost analysis

Decision matrix

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. • production • distribution • pricing • packaging

Distribution

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 • staying at home. • both the ice cream and the movie. • ice cream at Dairy Queen. • the movie.

Ice cream at Dairy Queen

Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks: • Excess demand • Relative price • Inflated price • Incentives

Inflated Price

Which of the following is characteristic of a buyer's market: • High demand • Steady demand • Low supply Low prices

Low Prices

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? • $40 • New pair of jeans • Trip to amusement park • No opportunity cost was involved.

New pair of Jeans

The use of thorough job orientation helps to increase productivity through • mass production. • participative decision making. • training and education. • quality of work life.

Participative

Why are human resources limited? • Some people are unable to work. • New equipment is expensive. • Countries lack needed technology. • World population continues to grow.

Some people are unable to work

Why are resources considered limited? • Entrepreneurs do not invest enough of them. • There are not enough available so that everyone can have as much of them as desired. • Everyone has them, and they change. • There are so many that people must decide which ones to choose at any one time.

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

Why do most businesses use some type of quality control method at work? • To organize employees • To minimize errors • To attract vendors • To guarantee safety

To guarantee safety

An automobile assembly line currently has 75 cars being assembled. These partially-complete cars are considered • direct labor utilization. • flow time. • direct labor content. • work in process.

Work in Progress

insentive

a thing that motivates or encourages one to do something.

Trade-off

an alternative that we sacrifice when we make a decision

The amount of a product that is produced is most directly affected by • labor unions. • product utility. • product value. • consumer demand.

consumer demand

Changes in the Business Environment

organizations need to be aware of changes in the business environment that might effect the position of their products or services

One way for a business to increase productivity is to increase its • imports. • environmental concern. • prices • research and development.

prices

economic growth

the ability of the economy to increase the production of goods and services

oppurtunity cost

the most desirable alternative given up as the result of a decision

Scarcity

•The fundamental economic problem that forces consumers and producers to use resources wisely. •Forces Economizing •use resources less wastefully

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 • process • distributed • associative

Process

When customers buy the exact amount of goods that producers are selling at a specific price, the __________ price exists. • market • equilibrium • unit • production

Production