Bus 1201 Exam 1
______ is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.
Business
Frieda's Freestyle Skateboards has many customers but is not dominant in its field. This is a ___ business.
Small
_______ is purchasing raw materials or products in other nations and bringing them into one's own country.
Importing
The ____________________________________________________ was created in 1994 and includes Canada, the United States, and Mexico.
North American Free Trade Agreement (NAFTA)
Which of the following countries is considered to have a communist economy?
North Korea
During which phase of the business cycle does a business typically introduce new products?
Peak
________________________ is characterized by a market in which there are many buyers and sellers of a product. In ___________________, no single buyer or seller can affect the price of the product.
Perfect competition
________ between the franchisors and franchisees have increased in recent years and contract disputes are causing many lawsuits.
Disagreements
Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees.
Disagreements between the two parties have increased and contract disputes are causing many lawsuits.
_______ is the study of how wealth is created and distributed.
Economics
________________ control is a restriction on the amount of a particular foreign currency that can be purchased or sold. By limiting the amount of foreign currency importers can obtain, a government limits the quantity of goods importers can purchase with that currency.
Foreign-exchange
A businessperson in the early 1980s would have been faced with which of the following problems?
High inflation with high interest rates
During the economic periods of _________ the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.
prosperity
The United States placed a very high tax on cars imported from Japan to benefit the U.S. auto industry. What type of tax has the U.S. Government imposed on Japanese vehicles?
protective tariff
According to the authors, many individuals, business leaders, and politicians worry that the future of the nation's economy
could lead to a bumpy road and a recession
Warby Parker offers customers a virtual try on feature which allows them to see how they might look in a pair of glasses. This feature shows the effect of the _______ environment on business.
Technological
Business cycle is defined as
fluctuations in a national economy.
________ is levied to protect a domestic industry from competition by keeping the price of competing imports level with or higher than the price of similar domestic products.
protective tariff
When a business cycle enters a trough of a recession or depression, the federal government can use ____________
monetary and fiscal policies
When Exxon/Mobil, Shell, and a few other firms dominate the American oil market, this is an example of
oligopoly
small business
one that is independently owned and operated for profit and is not dominant in its field
All of the following are true about small business except
small businesses create cyclical unemployment
The purpose for forming the Organization of Petroleum Exporting Countries (OPEC)
was to create a collective-bargaining unit.
A ________ advantage is the ability to produce a specific product more efficiently than any other product.
Comparative Advantage
Which of the following is not a way that Warby Parker differentiates itself from its competition?
Advertising on social media
The health of a national economy will have an effect on all of the following except
Changes in productivity
Dave of Warby Parker says that most brands of eyeglasses are owned by the same company. This illustrates which type of competition?
Monopoly
The _____________________________________ was developed to arbitrate disputes between franchisors and franchisees.
National Franchise Mediation Program
In 1793 ______________ established a textile factory in Pawtucket, Rhode Island to spin cotton into thread. The factory brought together all of the materials, machinery, and workers needed to produce the thread.
Samuel Slater
One of the main advantages of ________ business that helps retain and draw effective employees who could earn more at a larger firm is the ability to build personal relationships with employees.
Small Business
_______________ produce two-and-a-half times as many innovations as large firms relative to the number of persons employed.
Small firms
Elizabeth lives in a country where individuals may own their own property. Some of the very wealthy people own oil refineries and have stock in computer companies but the government owns the railroads, airports, ports, and roads in addition to the utility companies, communications companies, banking, and steel production facilities. What kind of economy best characterizes this nation?
Socialist
Our economic system provides freedom that allows businesses to
adapt
In order for an importer to pay the exporter, the exporter's bank will issue a ___ ordering the importer's bank to pay for the merchandise.
draft
An _______ is a complete halt to trading with a particular nation or of a particular product.
embargo
Dave and the other founders of Warby Parker can be best described as __________, people who risk their time, effort, and money to start and operate a business.
entrepreneurs
More new businesses fail due to lack of ______________ and ___________ than for any other causes.
good management skills and capital
Javier, a Mexican national, buys products and materials in the United States and takes them to Mexico to sell. Javier is engaged in
importing
As the price of jeans rises, Jordache is likely to
increase production thus increasing the supply of jeans
If Mexico imposed an import duty on coffee beans it would have the effect of all of the following except
reducing the number of units exported.
