Economics applications in business
In order to have exclusive rights to their literacy and artistic works authors and artists can apply for a
Copyright
Which of the following is an example of a tax that government collects from some businesses
Excise
Which of the following decreases as production increases in a business that has economics of scale
Fixed cost
What type of product utility is created by consumers by credit cards, change accounts, and installment loans?
Possession
Promotion, layaway, and credit help create ______ utility.
Possession.
When workers walk off their jobs without permission of their union leaders and in violation of their working contracts they are guilty of an unlawful act called
Wildcat strike
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Which of the following is a characteristic of a depression
A high rate of business failures
A benefit to producers and consumers of growing economy is that it provides
A higher standard of living
Competition encourages businesses to develop new products that will be
Able to meet customer needs
The us produces widgets faster and cheaper than Switzerland. In this example the us has a(n) __________ advantage
Absolute
One step that a government might take to reduce its trade deficit would be to
Adjust interest rates
The cat agony of GDP called gross private domestic investment includes
All purchases of capital goods
One way a governments central banking system could regulate the nations money supply is by changing the
Banks reserve requirements.
What type of contract exists if a customer signs a contract with a business agreeing to pay a certain price for a soecific product?
Bilateral
What effect does competition have on the marketplace
Improved goods and services
What is a quick way to calculate profit
Income-expenses=profit
If a business reduces the price of an item from 3.75 to 3.00 demand for that item will usually
Increase
If the number of grocery stores in a community remains the same but more consumers move into the area demand for groceries will probably
Increase
When consumer spending increases the demand for money tends to
Increase
Which of the following is one of the disadvantages to specialization and division of labor:
Increased boredom of job
Which of the following factors would decrease demand for a countries free-floating currency
Increased political unrest
Loris and Lola plan to open a business. Lois is unable to devote full time to the daily operations of the business but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois.
Limited
What do producers often do when supply is greater than demand
Lower prices
Economics is concern e primarily with evaluating alternatives and
Making economic decisions
The increase in total expenses as a business produces one more unit of a product is the
Marginal cost
When a company has achieved a minimum level of efficiency the long run average total costs of production have been
Minimized
Which of the following influences interest rates for the purpose of promoting economic growth and full employment in a country.
Monetary policy
For which of the following is the federal reserve responsible
Monitoring mergers of financial institutions
Comparing budgeted and actual amounts can be used to evaluate
Most aspects of a business
Why might businesses decide to hold on to products to sell later when the economy is experiencing a high
Prices will continue to rise
The main reason people are willing to face possible business risks is
Profit
The governments mandating the use of unleaded gas in new cars is an example of
Protecting the environment
When applying the law of diminishing returns, businesses know that there is a point at which production
Reaches its maximum level
A technique used by socially responsible businesses to help conserve natural resources is called
Recycling
One of the main functions of a country's monetary policy is to
Regulate the economy
Who is likely to bear the burden of a tax placed on the producer of a good or service when demand is in elastic
The consumer, who will pay the higher price
Which of the following situations would most likely indicate the need to adapt to changes in the business environment
The supply of materials used in manufacturing a product has decrease
Which of the following is true of employees who's jobs have high depth:
They set their own pace
Why do marketers classify goods and services
To aid marketing planning
What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes?
To encourage research
Bricklayers, science teachers, dentists, and truck drivers are examples of specialization of labor by
Trade or profession
Which of the following is an example of a business's intellectual property that is protected by law?
Trademarks
George agreed to paint joes car for him, but George asked joe to lay him in cash,. The money George earned is part of the
Underground economy
To overcome language differences when meeting with business people from other countries a company might
Use a translator
Which of the following is a business factor that may affect the business environment
Wage regulations
Over the next few years members of generation x and Generation Y are expected to fill many job positions vacated by retiring baby boomers this is an example of a change in
Workforce demographics
Which of the following should businesses consider when making decisions about global trade
Cultural symbols
Which of the following is an uninsurable risk
Changes in customer buying habits
A type of business that is own d by a few people and does not offer its shares for sale to the public is a type of
Close corporation
I'm tired of the government telling me what to do. They made me become a teacher, they determine my salary, and they even control where I can live. The worker complained, what type of economic system is this person complaining about
Communism command
Which if the following is an external factor that affects market price
Consumer buying power
Which phase of the business cycle pull most likely have have an unfavorable effect on a business environment
Contraction
One way that budgets help to keep businesses financially sound is by
Controlling spending
You have been hired as a bricklayer for the new mall that is being built in your town. Which of the following types of unions should you most likely join?
Craft
One of the ways in which businesses can be socially responsible is by using research and development in order to
Create new and better products
Businesses that want to trade with foreign countries need to understand the _____of those countries
Cultural characteristics
One way that productivity of a business can be measured is by
Dividing the dollar value of total sales by the cost of making those sales
When changes in a products price cause corresponding changes in consumer demand, the product has
Elastic demand
Encouraging senior citizens to apply for jobs previously filled by young people is an example of
Finding new sources of human resources
Which of the following is an important tool that governments use to keep the economy balanced and running smoothly
Fiscal policies
The city increases its sales tax from 6% to 6 1/2 %. This is an example of a change in
Fiscal policy
To thrive in today's fast paced markets which of the following is the most important characteristic for a business to have.
Flexibility
Businesses that allow their employees to set their own schedules are offering
Flextime
Which of the following are results, or outputs, of the production activities of a business
Goods or services
The connection between social responsibility of a business and the community in which the business operates is that the business's social responsibility _______ the community
Has an affect on
Environmental degradation occurs because of
Increased production
The new toy on the market was in high demand but available only in limited quantities. The local toy store,decided to take advantage of the situation by
Increasing the price
What is the likely result when workers wages rise throughout the economy while productivity decreases?
Inflation
Buildings, robots and blast furnaces that businesses use to produce other goods and services are examples of
Installations
Nations that buy and sell essential goods and services from and to each other are
Interdependent
Which of the following is an economic factor that often causes consumers to reduce spending
Interest rates
How does the federal reserve help to control inflation
It adjusts short term interest rates
Financial analysis occurs when a business
Keeps accurate expense records
One of the biggest barriers that separates countries/ regions is
Language
What organization helps union locals to become established, recruit new members, and negotiate with management?
National union
Weather circumstances can directly fact the supply of
Natural resources
The money spent to run a business is called
Operating expenses
Why does the demand for money change
People choose a substitute for money
Which of the following is a reason why human resources are limited
People lack needed training
What do business owners consider when they select a business ownership structure
Personal circumstances, financial needs, and the type of business
Typically a budgets largest income category is
Sales
What type of product do consumers usually need more information about before buying in order to get e best price?
Shopping
Government owns the basic means of production but there is some private ownership of businesses under
Socialism
What usually results when interest rates continue to increase
Spending decreases
During economic fluctuations taxes serve the purpose of __________ the economy
Stabalizing
Which of the following statements is true about private enterprise
Supply and demand determine prices
One of the factors that directly limits the freedom of individuals in a private enterprise system is government
Taxation