GB311: Midterm 1- Quiz Questions
Which of the following marketing concepts emerged during the marketing era?
A consumer focus that permeates successful companies in every department, at every level
In the context of evaluating economic performance, which of the following statements is true of productivity?
A low level of productivity tends to correlate with a stagnant economy
Anya is an administrator at Zenorx Inc., a start-up software company. She is responsible for acquiring capital for the company. In the context of the various factors of production that businesses rely on, which of the following functions is most likely to be a part of Anya's responsibilities?
Acquiring synthetic resources like computers and telephones
Which of the following statements best describes e-commerce?
Business transactions conducted online, typically via the Internet
In the context of the history of American business, which of the following statements is true of the relationship era?
Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business
In the context of the history of American business, which of the following statements is true of the marketing era?
Businesses began to develop brands to help customers understand the differences among various products
_____ is an economic system based on private ownership, economic freedom, and fair competition.
Capitalism
Which of the following scenarios illustrates the utilization of human resources as a factor of production?
Carlos hires a content writer to develop content for his online portal that sells fashion accessories
Which of the following statements is true when a person makes a career choice based on what he or she loves doing?
Chances of personal success are boosted
_____ is an economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central government.
Communism
Which of the following was a result of the collapse of financial institutions during the economic crisis in the United States?
Companies began to announce layoffs
In the context of the history of American business, which of the following is a feature of the relationship era?
Cultivating current customers turn out to be more profitable than constantly seeking new ones
Which of the following statements is true about the debt ceiling?
Debt ceiling hikes are fairly routine
In the context of the history of American business, which of the following statements is true of the industrial revolution?
Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks
_____ are four fundamental resources—natural resources, capital, human resources, and entrepreneurship—that both businesses and nonprofits rely on.
Factors of production
_____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries.
Free trade
The _____ is an international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.
General Agreement on Tariffs and Trade
Which of following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?
Goods moved more freely than ever across international boundaries
_____ is the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.
Gross domestic product
Which of the following factors of production encompasses the physical, intellectual, and creative contributions of people working within an economy?
Human resources
Which of the following statements is true of structural unemployment?
It encompasses people who don't have jobs because the economy no longer needs their skills
In the context of monetary policy, which of the following statements is true of the reserve requirement?
It helps protect depositors who may want to withdraw their money without notice
In the context of measuring economic performance, which of the following statements is true of gross domestic product (GDP)?
It ignores legal goods that are not reported to avoid taxation
In the context of the technological environment, which of the following statements is true of business technology?
It includes any tools that companies can use to become more efficient and effective
In the context of the free market system, which of the following statements best describes pure competition?
It is a market structure with many competitors selling virtually identical products
Which of the following statements is true of countertrading?
It is a powerful tool for gaining customers and products that would not otherwise be available
Which of the following statements is true of the economy?
It is essentially a financial and social system
In a business, which of the following statements best describes profit?
It is the money that a business earns in sales, minus expenses
Which of the following statements best describes a budget surplus?
It is the overage that occurs when revenue is higher than expenses over a given period of time
Which of the following statements best describes a budget deficit?
It is the shortfall that occurs when expenses are higher than revenue over a given period of time
Which of the following statements best describes the consumer price index (CPI)?
It measures the change in weighted-average price over time in a consumer market basket of goods and services that the average person buys each month
Conela is a nonprofit organization that renovates abandoned government schools and facilitates their functioning. It is headed by two social activists and is funded by the government. Which of the following statements is true of Conela?
It takes in revenue like any other business
Identify a true statement about real gross domestic product (GDP)?
It usually tends to be understated as it does not include any illegal activities
Which of the following statements is true of the fiscal cliff?
It was a package of draconian across-the-board spending cuts
Drenexa Pharmaceuticals is based in the United States. In the context of the social environment, which of the following is most likely to be an impact of the rapidly aging population on Drenexa Pharmaceuticals?
It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom
In the context of the history of American business, which of the following statements is true of the production era?
Jobs became specialized, increasing productivity and lowering costs and prices
In the context of the history of American business, which of the following statements is true of the entrepreneurship era?
Large-scale entrepreneurs emerged in the second half of the 1800s, building business empires
In the context of a business environment, which of the following is a key element of the U.S. economic environment?
Legislation that supports enforceable contracts
Which of the following is a similarity between millennials and digital natives?
Like millennials, digital natives tend to be extremely tolerant and inclusive
In the context of factors of production that businesses and nonprofits rely on, which of the following can be classified as capital?
Machine
In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources?
Most of them must be extracted, purified, or harnessed
Cleftell Inc., a coal mining company in the United States, is the only supplier of coal in its area. The company is backed by the government as it offers its supplies at a discounted rate. Government backing makes it easier for the company to deal with legislation, thereby increasing its overall efficiency and productivity. Which of the following market structures is exemplified in the scenario?
Natural monopoly
_____ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.
Nonprofits
_____ involve buying and selling government securities, which include treasury bonds, notes, and bills.
Open market operations
Which of the following was an impact of the American Recovery and Reinvestment Act?
People traded good-paying jobs for lower-paying positions
Which of the following factors is most likely to be covered by the social environment dimension of a business?
Population size and density
The government of Ledroy Coast, an island country, has imposed restrictions on the number of cars that can be imported in one year from Randavia, a leading car manufacturing country. This has helped the domestic car manufacturers of Ledroy Coast in increasing their market share. Which of the following trade restrictions has the government of Ledroy Coast imposed in this scenario?
Quotas
Which of the following is a difference between the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act?
TARP was a $700 billion economic bailout plan, whereas the American Recovery and Reinvestment Act was an $825 billion economic stimulus package
_____ is the rate of interest that the Federal Reserve charges when it loans funds to banks.
The discount rate
Which of the following is a key dimension of the business environment?
The economic environment
In the context of the social environment of the United States, which of the following statements is true of diversity?
The growth in ethnic populations offers robust profit potential for firms pursuing them
In the context of the U.S. economic environment, which of the following is a government policy that supports business?
The relatively low federal tax rate
Which of the following statements is true of capitalism?
The vast majority of enterprises are privately owned by businesses
Which of the following was a reason for the collapse of financial institutions during the economic crisis in the United States?
There was a drop in mortgage values
In the context of monetary policy, which of the following statements is true of commercial banks?
They accept demand deposits and make loans for the public
In the context of the different degrees of competition, which of the following is a reason why monopolies are considered illegal?
They can harm the economy
In the context of factors of production, which of the following statements is true of entrepreneurial enterprises?
They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production
In the context of monetary policy, which of the following statements is true of open market operations?
They involve securities that the government issues to finance its deficit spending
In the context of the competitive environment, which of the following statements is true of bleeding-edge firms?
They launch products that fail because they are too far ahead of the market
Which of the following statements is true of entrepreneurs?
They produce a ripple effect that enriches everyone around them
Which of the following statements is true of millennials?
They shaped the Internet
In the context of the global economic crisis in mid-2000, identify a true statement about subprime loans.
They were given to borrowers with little or no documentation
In the context of the global economic crisis, which of the following statements is true of subprime mortgage loans?
They were seen by the lenders as low-risk loans
In the context of factors of production, which of the following is a natural resource?
Wind
In the context of the business cycle, _____ is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters.
a recession
In the context of the production era, the "hard sell" refers to the:
aggressive persuasion designed to separate consumers from their cash
If the Federal Reserve increases the reserve requirement, _____.
banks must hold more funds
The periodic contraction and expansion that occur over time in virtually every economy is known as the _____.
business cycle
In the context of monetary policy, when the Fed reduces the discount rate, banks:
can obtain funds at a lower cost
The right to fair competition is one of the fundamental rights of:
capitalism
In the context of factors of production that businesses and nonprofits rely on, _____ cannot be considered a natural resource.
cereal crops
In the country of Harashimin, the government strongly backs the labor class of the country. It is authoritarian in nature and believes in exploiting wealthy citizens to fulfill its agenda of bringing social and financial equality in the society. In this scenario, the government of Harashimin has most likely adopted the political philosophy called _____.
communism
In the context of international trade restrictions, nontariff barriers tend to be fairly effective because:
complaints about them can be easy to counter
In a free market system, _____ refers to the quantity of products that consumers are willing to buy at different market prices.
demand
In the context of evaluating economic performance, productivity is calculated by:
dividing the amount of output by the amount of input
A pure market economy:
does not make sufficient provision for the environment
During the _____, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers.
entrepreneurship era
Jason set up a textile mill in his hometown in 1865. He became a rich businessman by the time his son Earl took over the business in 1895. Soon after Earl started heading the business, the government passed laws to regulate business and protect consumers and workers. Due to this move by the government, the textile mill had to introduce a fixed salary structure for its employees and implement quality checks for the products manufactured. In the context of the history of American business, Jason had set up this textile mill in the _____.
entrepreneurship era
Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____.
equilibrium price
The term _____ refers to the sum of all the money that the federal government has borrowed over the years and not yet repaid.
federal debt
When making a career choice, experts often advise graduating students to:
find a career they love as it will tend to be more rewarding
The term _____ refers to government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation.
fiscal policy
In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category, as competition becomes truly global.
free-trade movement
The prices of all the commodities have gone up in the country of Sraznesia, and this has led to country-wide protests. The situation worsens as the average prices increase more than 50% a month, resulting in more aggressive protests from the citizens. In the given scenario, this price rise will most likely lead to _____.
hyperinflation
During the _____, as mass production took hold, huge factories replaced skilled artisan workshops.
industrial revolution
In the context of fiscal policy, most economists agree that:
lower taxes can leave more money in people's pockets for them to spend or invest
The Krakozhian fashion market has many brands that sell clothing. However, each brand sells clothing designed for different niches in the market. In this scenario, the market structure prevalent in the Krakozhian fashion market is _____.
monopolistic competition
In the context of international trade restrictions, offering less-favorable exchange rates to certain importers is a(n) _____.
nontariff barrier
In the context of mixed economies, pure planned economies are practically nonexistent in today's world because they would:
not create enough value to support their people over the long term
The nation of Radonia recently approved the sale of its national railway service to a company called Dontsky Rail Corporation. The company has no association with the country's government and operates on its own terms. The sale of Radonia's national railway service to Dontsky Rail Corporation is an example of _____.
privatization
The _____ is a measure of inflation that evaluates the change over time in the weighted-average wholesale values.
producer price index
During the production era, in the early part of the 1900s, major businesses focused on:
refining the production process and creating greater efficiencies
In the context of the competitive environment of a business, the best measure of value is the:
size of the gap between product benefits and price
The nation of Platinia provides its citizens with free healthcare and education services. The government of Platinia funds these programs through high taxation. In addition to these services, the government also runs utilities, telecommunications, and several other enterprises. The nation of Platinia exemplifies a _____.
socialist economic system
In the context of planned economies, _____ tend to have high taxes, which are designed to distribute wealth more evenly through the public.
socialist economies
The quality and quantity of goods and services available to a population is referred to as the _____.
standard of living
In the context of the global economic crisis, _____ are defined by experts as loans to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repay the money they borrow.
subprime mortgages
Balance of payments is a measure of the:
total flow of money into or out of a country
Businesses that strongly focus on customer satisfaction tend to:
transform their current customers into loyal advocates for themselves
The _____ is the percentage of people in the labor force over age 16 who do not have jobs and are actively seeking work.
unemployment rate