Business Final

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

Concert tickets

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

Discouraged workers are not included.

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

What do businesses usually expect will increase when the economy experiences a continued rise in the level of inflation?

Interest rates

A country is experiencing civil unrest. What is likely to happen to the value of its currency?

It will decrease.

What usually decreases as the rate of inflation increases?

Purchasing power

Which of the following would policy makers monitor to understand personal consumption expenditures (PCEs):

Retail sales

The primary purpose of a feasibility study is to answer which of the following questions:

Should we proceed with this project?

Which of the following is a program that some managers implement to achieve quality in all aspects of the business:

Six Sigma

What usually results when interest rates continue to increase?

Spending decreases.

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.

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

The nation experiences an economic slowdown.

If interest rates go down, which of the following would most likely occur:

The stock market will go up.

Why do most businesses use some type of quality control method at work?

To minimize errors

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

To continuously improve and achieve quality throughout the business, management must

establish standards.

When consumer spending and consumption decrease, consumer confidence tends to

fall.

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 cant do both. If he decides to go the movies, the opportunity cost of his choice is

ice cream at Dairy Queen.

The best time for a business to purchase new equipment is when

interest rates are low.

The value of a countrys currency declines when it implements policies that restrict trade. The primary factor affecting the change in value of the currency in this situation is

isolationism.

The young childrens section of a U.S. amusement park features cartoon characters from a German TV show. Although the amusement park signed an agreement and paid a fee to display images of the cartoon characters, the TV show doesnt own or manage the park in any way. This is an example of

licensing.

The formula that is generally used to measure productivity is

outputs divided by inputs.

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

Dividing the dollar value of total sales by the cost of making those sales is one way that businesses often measure their

productivity.

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

structural

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

there are not enough jobs for qualified people.

Which of the following would NOT be analyzed in a feasibility study:

The ventures past sales

Why does the Federal Reserve System raise interest rates?

To fight inflation

When consumers purchasing power decreases, the economy will experience a period of

contraction.

When a nations inflation rate is low, prices tend to

remain stable.

Mary is a bagger at Glens Market. On a weekly average, she works 30 hours and fills 876 bags of groceries. Her productivity is ___________ bags of groceries per hour.

29.2

If three employees each work 35 hours a week and produce a total of 9,765 items, what is their total hourly productivity level?

93

How do spending levels impact the economy in an inflationary period?

Consumers and businesses spend less.

Which of the following is a true statement about currency exchange rates:

Currency exchange rates change frequently.

A U.S. company begins selling its products in France. Despite brisk sales, the company doesnt 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?

Currency fluctuations

What is often the result when businesses are able to achieve and maintain a quality culture?

Customer satisfaction

Why might businesses decide to hold on to products to sell later when the economy is experiencing high levels of inflation?

Prices will continue to rise.

Which of the following is an example of paradigm innovation:

Windows computer operating system

When assessing global trends for potential business opportunities, an entrepreneur often looks for a market that has

an unmet want.

Which of the following statements is true regarding a nations unemployment rates:

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

What is likely to occur when the inflation rate increases, and workers do not receive pay increases?

Lower standard of living

John only had $40 to spend and couldnt 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

Interest rates rising and falling by a wide range on a regular basis often are an indication of

economic instability.

When consumer spending is high, the economy usually is in a(n)

growth stage.

Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner can

satisfy an unmet demand.

An important aspect of continuous quality improvement within an entire business organization requires management to

solicit input from employees.