Business Environment
Which of the following statements about factors of production is the most accurate? A. The five factors of production are energy, capital, labor, leadership and money. B. Wealth creation in poor nations is slowed by chronic shortages of labor. C. Each of the factors of production is equally important in creating wealth. D. Entrepreneurship and knowledge are the most important in creating wealth.
What is D. Entrepreneurship and knowledge are the most important in creating wealth.
Which of the following would be a topic emphasized in a microeconomics class? A. How a nation's GDP is computed. B. The reason's why the unemployment rate for the economy is rising or falling. C. How market conditions determine the price of a specific product. D. How the government can use fiscal and monetary policies to stabilize the economy.
What is C. How market conditions determine the price of a specific product.
Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called: A. A joint venture. B. A foreign subsidiary. C. Licensing. D. Outsourcing.
What is C. Licensing.
___________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment. A. Standard of living B. Quality of life C. Gross national income D. Social satisfaction index
What is B. Quality of life
Taxes and government regulations are part of the ________________ environment of business. A. economic and legal B. competitive C. social D. technological
What is A. economic and legal
_________ is the name of a free-market economic system in which most of the factors of production and distribution - such as land, factories, railroads, and stores - are owned by individuals. A. Socialism B. Capitalism C. Communism D. Marginalism
What is B. Capitalism
A nation has a ___________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods. A. supreme advantage B. primary efficiency C. qualified advantage D. comparative advantage
What is D. comparative advantage
__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner. A. Franchising B. Contract manufacturing C. Import trading D. Export trading
What is A. Franchising
Last year, Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million. Based on this information, Adventure reported: A. profits of $14 million. B. profits of $34 million. C. losses of $14 million. D. losses off $34 million.
What is A. profits of $14 million.
Efficiency means: A. producing the desired result. B. producing goods and services using the least amount of resources. C. the amount of output you generate given the amount of input. D. the buying and selling of goods using the most amount of resources.
What is B. producing goods and services using the least amount of resources.
The quantity of a good or service that producers are willing to sell at different prices during a specific time period is known as the: A. Supply of that product or service. B. Demand for that product or service. C. Elasticity of that product or service. D. Utility of that product or service.
What is A. Supply of that product or service.
Household Appliances, Inc. has a manufacturing plant near Chicago. The company specializes in compact washers and dryers for countries where consumers have less living space. Household Appliances participates in the global market through: A. importing. B. dumping. C. exporting. D. balancing trade.
What is C. exporting.
An advantage of forming a joint venture is: A. no shared costs or risk. B. a perpetual arrangement. C. it's a good strategy for entering new markets where you have never had a presence. D. it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture.
What is C. it's a good strategy for entering new markets where you have never had a presence.
World-class businesses attempt to meet the needs of: A. their customers, even if it comes at the expense of employees and other stakeholders in the business. B. their employees, even if it means shortchanging customers by charging higher prices. C. all of their stakeholders. D. exclusively their owners, since they are ultimately the ones who pay the bills.
What is C. all of their stakeholders.
___________ studies the operation of a nation's economy as a whole. A. Microeconomics B. Socioeconomics C. Econometrics D. Macroeconomics
What is D. Macroeconomics
___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different. A. Perfect competition B. Monopolistic competition C. Oligopoly D. A monopoly
What is B. Monopolistic competition
The only deposits of a rare and sought after mineral known as Yuksporite are found in Russia. Since no other nation has deposits of Yuksporite, Russia has a(n)__________ in this mineral. A. protected advantage B. diversified benefit C. absolute advantage D. relative internal benefit
What is C. absolute advantage
Using contract manufacturing as a strategy to reach global markets offers firms the advantage of: A. expert and experienced laborers. B. reduced financial risks. C. increased volatility. D. currency stability.
What is B. reduced financial risks.
The resources that contribute to the creation of wealth are known as ________. A. production coefficients B. factors of production C. production technologies D. production aggregates
What is B. factors of production
The study of how to increase the amount of available resources and create conditions that will make better use of these resources is known as: A. human resource management B. microeconomics C. econology D. resource development
What is D. resource development
Since 1975, the U.S. has had a(n) ____________. A. export surplus B. import surplus C. trade surplus D. trade deficit
What is D. trade deficit
Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people? A. Culture B. Ethnocentricity C. Institutional society D. Social myopia
What is A. Culture