Business Sem 1 test
Mary is a bagger at Glen's 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
Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?
Concert tickets
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 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?
Currency fluctuations
What is one reason why the overall unemployment rate understates the actual employment situation?
Discouraged workers are not included
Interest rates rising and falling by a wide range on a regular basis often are an indication of
Economic instability
When consumer spending and consumption decrease, consumer confidence tends to
Fall
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
What is a negative economic incentive?
High taxes on cigarettes
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
Ice Cream at Dairy Queen
What do businesses usually expect will increase when the economy experiences a continued rise in the level of inflation?
Interest rates
The best time for a business to purchase new equipment is when
Interest rates are low
A country is experiencing civil unrest. What is likely to happen to the value of its currency?
It will decrease
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?
New pair of jeans
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
What usually decreases as the rate of inflation increases?
Purchasing power
Which of the following would policy makers monitor to understand personal consumption expenditures?
Retail sales
The primary purpose of a feasibility study is to answer what?
Should we proceed with this project?
What 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
What 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
What is NOT analyzed in a feasibility study?
The venture's past sales
Why does the Federal Reserve System raise interest rates?
To fight inflation
Why do most businesses use some type of quality control method at work?
To minimize errors
What is an example of paradigm innovation?
Windows computer operating system
When consumers purchasing power decreases, the economy will experience a period of
contraction
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
When consumer spending is high, the economy usually is in a
growth stage
The value of a country's 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 formula that is generally used to measure productivity is
outputs divided by inputs
When a nation's inflation rate is low, prices tend to
remain stable
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
What is often the result when businesses are able to achieve and maintain a quality culture?
Customer satisfaction
What is likely to occur when the inflation rate increases, and workers do not receive pay increases?
Lower standard of living
When assessing global trends for potential business opportunities, an entrepreneur often looks for a market that has
an unmet want
To continuously improve and achieve quality throughout the business, management must
establish standards
The young children's 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 doesn't own or manage the park in any way. This is an example of
licensing
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 Vernon's 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
