Intro to Business chapter 1- test review
Which of the following statements about a socialist economic system is true?
The government owns or controls the major industries.
Full employment means 94-96 percent of the working force is employed.
True
What is the primary difference between a good and a service?
What is the primary difference between a good and a service?
_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.
Entrepreneurs
No true examples of a pure monopoly exist today.
False
Not-for-profit organizations have the same goals as for-profit organizations.
False
The most basic measure of economic growth is the:
Gross Domestic Product
In terms of economic trends, the complete opposite to communism is:
capitalism
Understanding the external business environment requires marketers to be aware of:
changes in the law which impact how business is conducted
Which one characteristic most clearly defines a market structure?
the number of suppliers in a market
Monopolistic competition is a market structure in which entry is easy.
true
The slope of the supply curve is:
upward and to the right
Tyron Lewis has recently quit his job in the administrative offices at the nearby hospital and is currently seeking a retail management position. He would be described as structurally unemployed.
False
Which of the following statement about oligopolies is true?
In an oligopoly, three or four firms usually dominate the marketplace.
Fiscal policy is concerned with:
taxation and spending
In a mixed economy, the government is involved in the economic system through:
taxing, spending, and welfare activities
Which of the following is the BEST example of a not-for-profit business?
the American Cancer Society
changes in the law which impact how business is conducted
the United States
Which of the following statements about the interaction of demand and supply is true?
At prices below equilibrium, demand exceeds supply.
What is the primary difference between a good and a service?
A good is tangible, and a service is intangible.
_____ are workers who create, distribute, and apply knowledge.
Knowledge workers
Which of the following businesses provides its customers with a service?
a law office
When a single firm accounts for 100 percent of industry sales, it is an example of:
a pure monopoly
Labor, as a factor of production, refers to:
all workers in business
A farmer's market where sixty farmers come weekly to sell the produce they grow in their gardens is an example of monopolistic competition.
false
The key element in socialism is:
governmental control
The implementation of a contractionary policy by the Federal Reserve would result in:
lower inflation
Because the government owns the factors of production in public lands, postal service, and some water resources, Great Britain is considered a(n):
mixed economy
As one of the factors of production, capital includes all of the following EXCEPT:
money
When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nation's _____ GDP.
real
On the island of Martha's Vineyard, jobs are plentiful during the summer months, but difficult to find in September once the tourist season ends and many restaurants and inns close. What kind of unemployment do people who work in the island's restaurants experience annually?
seasonal
The government owns or controls the major industries.
At prices below equilibrium, demand exceeds supply.
Upward and downward changes in aggregate economic activity, as measured by GDP, are called:
business cycles
Which of the following is NOT an example of a good that would be sold in a department store?
the advice of a wedding planner
Structural unemployment is unemployment that results from:
the changing structure of an industry