Question 1

Of the following, which is not considered a basic management function necessary to be an effective manager?

Accepted Answer

A)   Planning
B)   Organising
C)   Leading and motivating
D)   Controlling
E)   SellingF) A) and E)
G) None of the above

Question 2

The factors of production include natural resources, labour, government assistance, and entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 3

The products available in a monopolistically competitive market are similar in nature and are intended to satisfy the same need.

Accepted Answer

A) True 
 B)False

Question 4

When a firm's sales revenues are greater than its expenses, the firm has a

Accepted Answer

A)   profit.
B)   loss.
C)   positive cash flow.
D)   financial resource.
E)   factor of production.F) C) and E)
G) D) and E)

Question 5

A depression is a severe recession that lasts longer than a recession.

Accepted Answer

A) True 
 B)False

Question 6

Fluctuations in a nation's economy are referred to as its

Accepted Answer

A)   economic upheaval.
B)   inflation problem.
C)   depression cycle.
D)   business cycle.
E)   recession period.F) A) and B)
G) A) and C)

Question 7

Adam Smith developed the concept of the invisible hand to explain how all economic activity should be based on a nation's needs and not the individual's needs.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not one of the four states included in a typical business cycle?

Accepted Answer

A)   Repression
B)   Peak
C)   Recession
D)   Trough
E)   RecoveryF) A) and C)
G) A) and E)

Question 9

____ is a loose, subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

Accepted Answer

A)   Employment success
B)   Standard of wealth
C)   Standard of living
D)   Economic satisfaction
E)   Satisfaction economic factorF) A) and C)
G) B) and E)

Question 10

The ultimate goal of every business firm should be to satisfy the needs of its customers.

Accepted Answer

A) True 
 B)False

Question 11

Andrew Cooper decides to become a part owner of a corporation.As a part owner, he expects to receive a profit as payment because he has assumed the risk of

Accepted Answer

A)   serious inflation eroding the purchasing power of his investment.
B)   being paid before the suppliers and employees are paid.
C)   losing his home, car, and life savings.
D)   losing the money he has invested in the corporation and not receiving profits.
E)   the company giving all of the profits to local communities.F) All of the above
G) B) and D)

Question 12

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

Accepted Answer

A) True 
 B)False

Question 13

All of the following except ____ are effects felt by individuals in regard to the health of a nation's economy.

Accepted Answer

A)   the amount of interest paid for a home
B)   acquiring a job
C)   obtaining financing for your education
D)   increases in productivity
E)   the interest paid on credit card purchasesF) B) and E)
G) B) and D)

Question 14

The organised effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

Accepted Answer

A)   business.
B)   economy.
C)   entrepreneurship.
D)   e-business.
E)   e-marketing.F) B) and C)
G) A) and B)

Question 15

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n)

Accepted Answer

A)   oligopoly.
B)   domestic system.
C)   system of specialisation.
D)   factory system.
E)   barter system.F) A) and B)
G) B) and C)

Question 16

In a socialist economy, key industries owned by the government include all except

Accepted Answer

A)   utilities.
B)   communications.
C)   food production.
D)   banking.
E)   transportation.F) All of the above
G) A) and B)

Question 17

The relationship between sales and profits can be written as

Accepted Answer

A)   sales revenues + expenses = profit.
B)   loss + profit = sales revenue.
C)   profit -expenses = sales revenue.
D)   expenses + loss = sales revenue + profit.
E)   sales revenue - expenses = profit.F) All of the above
G) A) and B)

Question 18

Command economies include capitalism, socialism, and communism.

Accepted Answer

A) True 
 B)False

Question 19

A legal monopoly is also referred to as a(n)

Accepted Answer

A)   limited monopoly
B)   public monopoly
C)   natural monopoly
D)   oligopoly
E)   legal oligopolyF) A) and D)
G) A) and B)

Question 20

Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

Accepted Answer

A)   Altered gross domestic product
B)   Gross domestic product
C)   Real gross domestic product
D)   Altered gross national product
E)   Gross national productF) C) and D)
G) B) and E)

Exam 1: Introduction to Business

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n)

Correct AnswerverifiedShow Answer

____ is a loose, subjective measure of how well off an individual or society is in terms of obtaining want-satisfying goods and services.

Correct AnswerverifiedShow Answer

The products available in a monopolistically competitive market are similar in nature and are intended to satisfy the same need.

Correct AnswerverifiedShow Answer

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending.

Correct AnswerverifiedShow Answer

Andrew Cooper decides to become a part owner of a corporation.As a part owner, he expects to receive a profit as payment because he has assumed the risk of

Correct AnswerverifiedShow Answer

A legal monopoly is also referred to as a(n)

Correct AnswerverifiedShow Answer

Adam Smith developed the concept of the invisible hand to explain how all economic activity should be based on a nation's needs and not the individual's needs.

Correct AnswerverifiedShow Answer

When a firm's sales revenues are greater than its expenses, the firm has a

Correct AnswerverifiedShow Answer

Fluctuations in a nation's economy are referred to as its

Correct AnswerverifiedShow Answer

The relationship between sales and profits can be written as

Correct AnswerverifiedShow Answer

The ultimate goal of every business firm should be to satisfy the needs of its customers.

Correct AnswerverifiedShow Answer

Command economies include capitalism, socialism, and communism.

Correct AnswerverifiedShow Answer

The organised effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

Correct AnswerverifiedShow Answer

The factors of production include natural resources, labour, government assistance, and entrepreneurship.

Correct AnswerverifiedShow Answer

In a socialist economy, key industries owned by the government include all except

Correct AnswerverifiedShow Answer

Of the following, which is not considered a basic management function necessary to be an effective manager?

Correct AnswerverifiedShow Answer

All of the following except ____ are effects felt by individuals in regard to the health of a nation's economy.

Correct AnswerverifiedShow Answer

Which of the following is not one of the four states included in a typical business cycle?

Correct AnswerverifiedShow Answer

A depression is a severe recession that lasts longer than a recession.

Correct AnswerverifiedShow Answer

Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

Correct AnswerverifiedShow Answer

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