BUS 110 Ch 1 and Ch 2

An increase or decrease in government regulations has a(n) Blank______ effect on business success due to the costs of adhering to the regulations. Multiple choice question. legal economic demographic social

economic

Huge differences in the wealth of relatively similar countries such as North and South Korea are an example of how different ______ and political conditions affect businesses. Multiple choice question. geographic social economic cultural

economic

Why did Thomas Malthus believe that population growth would surpass the available resources? Multiple choice question. There was too much illegal emigration. There were not enough peasants to grow the necessary crops. There were not enough rich people to help poor families. Fast population growth seemed to surpass the growth of the food supply.

Fast population growth seemed to surpass the growth of the food supply. Reason: During Malthus' times, rich landowners had most of the wealth while the majority of the people were peasants who had many children. Therefore, it seemed that there would soon be too many people and not enough food and other resources.

The first economist to describe the process that turns self-directed gain into social and economic benefits for all was Adam Smith. Thomas Malthus. John Maynard Keynes. Karl Marx.

Adam Smith.

What is the political and economic system in which the government makes almost all economic decisions and owns almost all the major factors of production, as well as choosing religion, where to live, and jobs for its citizens? Multiple choice question. Pure socialism Socialism Capitalism Communism

Communism Reason: Communism differs from socialism in that a country is said to be socialist even if only some basic businesses are owned by the government so that profits can be more evenly distributed.

Select all that apply What two principles did Adam Smith believe essential to the survival of an economy? Multiple select question. Freedom to own land or property Freedom to keep a business's profits Freedom of religion Freedom of speech

Freedom to own land or property Freedom to keep a business's profits

The video identifies three economic indicators. However, almost every discussion about a nation's economy is based on its Multiple Choice unemployment rate. distribution index. consumer price index. stagflation index. GDP.

GDP

Minimizing government interference with the free exchange of goods and services can help developing countries. Why? Multiple choice question. It encourages entrepreneurs to start businesses that create jobs and wealth. It is harder to do business when contracts are legally enforced. The lack of legal restrictions makes it impossible to enforce contracts. It discourages entrepreneurs who want to start their own businesses.

It encourages entrepreneurs to start businesses that create jobs and wealth.

Select all that apply What are two characteristics that define a business? Multiple select question. It seeks to earn a profit. It seeks to provide goods and services. It operates in more than one location. It has more than one employee.

It seeks to earn a profit. It seeks to provide goods and services.

According to a recent study, what impact did restaurants using the GrubHub platform see on their revenue growth compared to those that did not? Multiple Choice Revenue growth was six times greater than that of restaurants not using GrubHub. Revenue growth was equal to that of restaurants not using GrubHub. Revenue growth was three times greater than that of restaurants not using GrubHub. Revenue growth was not impacted for restaurants using GrubHub. Revenue growth declined for those restaurants using GrubHub compared to those that did not use it.

Revenue growth was six times greater than that of restaurants not using GrubHub.

In free markets the price of a product depends on how much consumers are willing and able to buy and how much the producers are willing and able to sell. What does the market price depend on in a free market? Multiple choice question. The price imposed by consumers Supply and demand The government negotiating the price with consumers and producers The price imposed by producers

Supply and demand

In what ways has the technological environment helped to grow GrubHub's business? Multiple Choice As an e-commerce business, GrubHub must constantly respond to changes in the technological environment in order to keep customers happy. GrubHub's software is designed to provide a seamless experience for both diners and restaurants. GrubHub holds the advantage over other companies in the industry because they were the first company to enter the food-delivery services market. The technological environment allows restaurants to use GrubHub's tablet app to confirm and complete orders, as well as to change menu items. The technological environment has allowed GrubHub to build a business overseas, to service approximately 1100 cities across the country, and to reach beyond city borders into smaller towns and suburbs.

The technological environment has allowed GrubHub to build a business overseas, to service approximately 1100 cities across the country, and to reach beyond city borders into smaller towns and suburbs.

Select all that apply What are two characteristics of mixed economies? Multiple select question. They are slowly disappearing, since they are unsuccessful. They contain elements of more than one system. They have no private ownership of business, only businesses owned by the state. They exist when the distribution of resources involves elements from more than one economic system.

They contain elements of more than one system. They exist when the distribution of resources involves elements from more than one economic system.

Which of the following created the name "dismal science" to refer to economics? Thomas Carlyle Thomas Malthus Adam Smith John Maynard Keynes

Thomas Carlyle

Carlyle called economics the "dismal science" after reading the early work of Multiple choice question. Thomas Malthus. Karl Marx. Adam Smith. Milton Friedman.

Thomas Malthus.

The difference between a firms revenues and the expenses needed to run the business, is called profit (or loss). True/False

True

What is the phenomenon known as brain drain? Multiple choice question. The situation that occurs when young interns leave to work for companies that pay higher wages The economic situation felt in a country that has many services, but too few taxes to pay for them The feeling experienced by many young entrepreneurs who feel the pressures in starting a new business When the best and brightest individuals in a country leave to work in other countries

When the best and brightest individuals in a country leave to work in other countries

Select all that apply What are two advantages of being an entrepreneur? Multiple select question. You have to provide your own benefits. You get to be your own boss. You have the opportunity to keep any profits from the business. You assume the risk of failure.

You get to be your own boss. You have the opportunity to keep any profits from the business.

Which of the following is an advantage to being an entrepreneur? You have less autonomy. You face less risk than if you worked for someone else. You keep all profits. Entrepreneurs do not have to pay taxes. You are guaranteed success.

You keep all profits.

Which of the following is a disadvantage to owning and operating your own business? You have to answer to someone else. Your personal assets can be seized to pay off the business's debts. You don't get to keep all of the profits. You have sole decision-making authority. You have less autonomy.

Your personal assets can be seized to pay off the business's debts.

A benefit of free markets is that it Multiple choice question. keeps prices of goods relatively stable. is not affected by the forces of supply and demand. allows for more government regulation. allows for open competition among companies.

allows for open competition among companies.

Jessica has a successful career working for a prestigious Fortune 500 company. However, she has decided to risk the security of her current job and open a small consulting business specializing in marketing. A person who risks time and money to start and manage a business is called a consultant. an intrapreneur. an entrepreneur. a manager. a stakeholder.

an entrepreneur.

A business can be defined as Multiple choice question. a socially responsible organization that is a not for profit. any activity that seeks to provide goods and services to others while operating at a profit. an organization that provides services to a community. any group of individuals that come together to achieve a goal.

any activity that seeks to provide goods and services to others while operating at a profit.

In a free market, the prices of products exchanged in the market ______. Multiple choice question. are always smaller than they should be will be set by buyers are negotiated by buyers and sellers will be set by producers unless the government intervenes

are negotiated by buyers and sellers

Why might you choose to work for a company instead of being an entrepreneur? Multiple choice question. because being a company employee is riskier and more rewarding because you get to keep all the profits made by the business because you get the freedom to make the decisions that control the business because the company assumes the risk if the business fails

because the company assumes the risk if the business fails

The loss of the best and brightest people to other countries is the: Multiple choice question. income drain body drain wealth drain brain drain

brain drain

In a free market, prices are determined by ______. Multiple choice question. buyers forecasting their needs buyers forecasting sales buyers determining the price they will pay buyers and sellers negotiating in the marketplace

buyers and sellers negotiating in the marketplace

Perfect, monopolistic, oligopoly, and monopoly are four different degrees of ______. Multiple choice question. market share sole proprietorships organizational structures competition

competition

Select all that apply What are three benefits of a free market economy? Multiple select question. competition that benefits consumers with better prices and service encouraging efficiency among competing businesses the opportunity for people to work their way out of poverty income inequality for those unable to work in business

competition that benefits consumers with better prices and service encouraging efficiency among competing businesses the opportunity for people to work their way out of poverty

GrubHub has more than 50,000 restaurants in its network, which is a significant advantage in which business environment? Multiple Choice competitive social economic and legal technological global

competitive

The quantity of products that people are willing to buy at different prices at a specific time is referred to as ______. Multiple choice question. demand supply equilibrium quantity market quantity

demand

Mark, the marketing manager of a large U.S. corporation, realizes that Afghanistan has virtually no supply of tomatoes. He conducts a study to see what quantity of tomatoes Afghan customers would be able and willing to buy at different prices. Mark is analyzing Afghanistan's Blank______. Multiple choice question. knowledge of free market concepts break even point for tomatoes demand for tomatoes supply of tomatoes

demand for tomatoes

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals is __. Multiple choice question. economic philosophy socialism economics capitalism

economics

When you take a company's revenues and subtract the expenses needed to operate the business you end up with Multiple choice question. total sales. either a profit or a loss. the amount left over for taxes. total costs.

either a profit or a loss.

Select all that apply Socialism has several negative outcomes such as: Multiple select question. fewer incentives to work hard higher taxes fewer employee benefits a brain drain

fewer incentives to work hard higher taxes a brain drain

Select all that apply What are two purposes that nonprofit organizations may seek to achieve? Multiple select question. filling a societal need filling an educational need increasing the stock price per share increasing profits for shareholders

filling a societal need filling an educational need

Adam Smith believed ______ was essential to the survival of any economy. Multiple choice question. the equal distribution of wealth taxation freedom government intervention

freedom

The video tells the story of a woman who decided to start a mushroom farm, which is a different type of business than others in her community. Under the foundations of capitalism, she used the basic right of Multiple Choice eminent domain. freedom of choice. habeas corpus. econometrics. patent protection.

freedom of choice.

The ______ environment of business impacts all of the other environmental influences. Multiple choice question. social competitive financial global

global

The supply concept refers to the relationship between the quantity of products produced and price. If the market price of a product increases, quantity supplied will ______. Multiple choice question. increase decrease stay the same

increase Reason: Generally speaking, the amount supplied will increase as the price increases because sellers can make more money with a higher price.

The _______ is another name for the theory that peoples' efforts to improve their own situations in life also help the economy grow and prosper. helping hand invisible hand relative hand innovative hand

invisible hand

Companies strive for zero defects in making their products because Multiple choice question. it increases customer satisfaction it creates a lot of waste and byproducts they know it is not really an achievable goal it increases the cost of waste

it increases customer satisfaction

The branch of economics that examines the economy as a whole is called general economics. microeconomics. metroeconomics. macroeconomics.

macroeconomics.

Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that Multiple choice question. almost all small businesses grow much larger. the risk of opening a business always pays off financially. small businesses seldom fail. many small businesses fail to be profitable.

many small businesses fail to be profitable.

Over time, as negotiation occurs between buyers demanding products and sellers supplying products, the ______ will be determined. Multiple choice question. factors of production CPI GDP market price

market price

Opportunity International helps people earn their way out of poverty through Multiple Choice bond financing. stock certificates. microfinancing. mortgages. debt capitalization.

microfinancing

What should governments of developing countries do to actively promote entrepreneurship? Multiple choice question. impose tariffs on the country's exports increase taxes to minimize competition minimize the interference with the free exchange of goods and services encourage government ownership of business

minimize the interference with the free exchange of goods and services

In global markets today, most economies are Multiple Choice mixed. capitalist. communist. free markets. socialist.

mixed

The term "factors of production" refers to the: Multiple choice question. people who create wealth in a country natural, human, and financial resources used to produce goods and services the processes needed to produce goods and services the factories and infrastructure that produce goods

natural, human, and financial resources used to produce goods and services

Which GrubHub company policy is unique among food-delivery services, allowing it to sustain a competitive advantage over its competitors? Multiple Choice no menu markup repeat past orders no delivery fees customize orders free downloadable app

no menu markup

Businesses improve the communities in which they operate by Multiple choice question. advising the government paying taxes marketing products eliminating competition

paying taxes

Select all that apply What are the four different degrees of competition within free markets? Multiple select question. perfect competition monopolistic competition oligopolies collusion cartels monopolies

perfect competition monopolistic competition oligopolies monopolies

The study of how to increase resources and to create the conditions that will make better use of those resources is called resource development. economics. capitalism. the invisible hand.

resource development.

Which business environment was affected when GrubHub expanded its target market to include families and working mothers in the suburbs?

social

A positive goal of ______ is social equality, while a negative outcome is taking income from citizens at extremely high rates. Multiple choice question. socialism capitalism communism

socialism

The idea that some basic businesses such as steel mills, coal mines and utilities, should be owned and controlled by the government is indicative of a _____ economic system. Multiple choice question. socialist capitalist free market communist

socialist

Prices in a free market economy are determined by ______. Multiple choice question. demand supply and demand supply the government

supply and demand

Select all that apply Select three elements that are part of the business environment. Multiple select question. corporate structure financial environment technological environment competitive environment economic and legal environments

technological environment competitive environment economic and legal environments

As a result of changes in ______ we are able to communicate with people around the world instantaneously. Multiple choice question. technology climate regulations demography

technology

The resources of land, labor, capital, entrepreneurship, and knowledge are: Multiple choice question. the factors of production not important to the creation of wealth products of a country needed by governments to succeed

the factors of production

Eduardo owns a farm in a country where taxes are very high and where the government openly considers the possibility of taking over the agricultural sector. Eduardo stopped investing in his farm and only works enough hours to be able to grow the food necessary for him and his family. Eduardo's behavior demonstrates that: Multiple choice question. farmers have poor management skills and prefer not to work too hard the government can force people to work harder and improve everybody's life people are lazy and will not work unless they have a good reason the freedom to own property and keep the profits from work is necessary to the survival of an economy

the freedom to own property and keep the profits from work is necessary to the survival of an economy

When ______ determines what goods and services get produced, it is a free-market economy. When Blank______ determines what goods and services get produced, it is a command economy. Multiple choice question. the market; the government the market; competition competition; the market the government; competition

the market; the government

Select all that apply What are two ways that socialism affects businesses? Multiple select question. through fewer regulations about the environment through higher levels of taxation because government owns many of the basic businesses such as utilities by limiting membership in labor unions

through higher levels of taxation because government owns many of the basic businesses such as utilities

What is the goal of a nonprofit organization? Multiple choice question. to make a contribution to the welfare of society to make money for the people who start them to provide a lot of jobs and improve the economy to make a profit so as to start new businesses

to make a contribution to the welfare of society

An important effect of changed communication technology is that we communicate Multiple choice question. nationally less than we do internationally. with people worldwide instantly. less often than before. only with those nearby.

with people worldwide instantly.

The term stakeholders refers only to those who own stock in a company. True false question.TrueFalse

False

What is the study of how resources are distributed for production of goods and services within a social system called? Multiple choice question. Demograhics Accounting Finance Economics

Economics

Which of the following is one of the most important factors of production? Service Entrepreneurship Technology Infrastructure Capitalism

Entrepreneurship

You are employed as a consultant by the prime minister of a developing nation to research ways of creating wealth in the nation. What two factors of production do you suggest to him will play the most crucial role in this mission? Labor and capital Labor and land Entrepreneurship and land Entrepreneurship and knowledge Land and capital

Entrepreneurship and knowledge

Select all that apply What are two reasons that many companies strive for high-quality products with "zero defects"? Multiple select question. They produce more scrap materials and byproducts. Fewer defects means less material wasted doing it over. Their customers are happier with their products. It increases production time and labor.

Fewer defects means less material wasted doing it over. Their customers are happier with their products.

What is the term for all of the groups that stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address? Multiple choice question. Stakeholders Employees Shareholders Stockholders

Stakeholders

The study of the characteristics of human populations such as size, density, age, race, gender, and income is known as ______. Multiple choice question. human science economics demography psychographics

demography

The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time is referred to as Blank______. Multiple choice question. equilibrium point equilibrium quantity demand supply

supply Reason: In most cases, the amount supplied will increase as the price increases, because sellers can make more money with a higher price.

The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time is referred to as ______. Multiple choice question. equilibrium point supply equilibrium quantity demand

supply Reason: In most cases, the amount supplied will increase as the price increases, because sellers can make more money with a higher price.

In an economic and political system called communism, _____. Multiple choice question. the government owns almost all the factors of production buyers and sellers decide what needs to be produced and by how much there is an abundance of goods and services production is based on free markets

the government owns almost all the factors of production

Select all that apply Which two factors are key in making the global environment of business so important that it encompasses all the other environmental influences? Multiple select question. fluctuating currency exchange rates government protection of domestic producers the growth of global competition the negotiation of trade agreements among nations

the growth of global competition the negotiation of trade agreements among nations

According to Adam Smith, as long as farmers, laborers, and businesspeople received economic reward for their efforts, they would work hard. As a result of this self-directed desire to gain, the economy would prosper and everyone would become wealthier. Smith called this process: Multiple choice question. the circular economy self support economic feedback the invisible hand

the invisible hand

Adam Smith believed that although businesspeople work to improve their own prosperity and not necessarily that of others, their efforts eventually provide social and economic benefits for all. He called this process Multiple Choice the invisible hand. bureaucracy. a command economy. economic rejuvenation. socialism.

the invisible hand.

The video tells the story of a woman who decided to start a new type of business rather than a business similar to others in her community. Her success as a mushroom producer benefited her family, her community, the other mushroom farmers she eventually trained and many others. This is an example of Multiple Choice socialism. a command economy. the invisible hand. bureaucracy. economic rejuvenation.

the invisible hand.

In a free market system, decisions about what and how much is produced are made by Blank______. Multiple choice question. consumers the market consisting of buyers and sellers the government in collaboration with producers leading economists

the market consisting of buyers and sellers