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Ch 1 - Bus Now - Change is Only Constant
Ch 1, 2, or 3
FIRST Open Column
Ch 2 - Economics
Ch 1, 2, or 3 Second Open Column
Ch 3 - World Marketplace - Global
100
94. The core goal of business is to generate long-term _____ by delivering _____ to their customers. a) value; product b) profits; value c) profits; security d) value; profits
What is b) profits; value
100
99. Successful firms of today would a) take risks. b) embrace change. c) focus on generating short-term profits. d) avoid new opportunities if what they are currently doing works well.
What is b) embrace change.
100
94. In the broadest sense, economics studies the choices that a) people make in disposing of unnecessary resources. b) governments make in creating natural resources. c) companies make in producing goods and services for corporate use. d) people, governments, and companies make in allocating resources.
What is d) people, governments, and companies make in allocating resources.
100
128. Nonprofit organizations are not in the business of a) producing a product. b) generating revenue. c) improving the quality of life in our society. d) financial gain.
What is d) financial gain.
100
118. When the total value of exports is higher than the total value of imports, a country experiences a a) trade exchange. b) trade surplus. c) trade deficit. d) countertrade.
What is b) trade surplus.
200
98. Entrepreneurs a) are primarily motivated by the desire to help others. b) create value for themselves at the expense of others. c) have little or no impact on others in society. d) create benefits for others while seeking profit for themselves.
What is d) create benefits for others while seeking profit for themselves.
200
155. Samuel lives in a community where many residents are retirees. He wants to open an exercise facility specifically for the active senior citizens aged 65 and older. Samuel knows that starting a new business will require a large amount of work and entails risk, but given the large number of senior citizens in the area, he believes he should be able to sell enough memberships to make a profit. Samuel is an example of a(n) a) corporate manager. b) consultant. c) entrepreneur. d) capital provider.
What is c) entrepreneur.
200
104. GeeGee’s is a neighborhood bakery known for its scrumptious tea cakes. GeeGee’s recipes call for expensive spices imported from Asia. Recently the cost of these spices has risen dramatically, leading GeeGee’s to consider increasing its prices. In order to analyze how this change would affect consumer choices, GeeGee’s management could perform a a) microeconomic analysis. b) macroeconomic analysis. c) transformational economic analysis. d) structural analysis.
What is a) microeconomic analysis.
200
120. The Federal Reserve is the _____ of the United States. a) financial market b) central bank c) state business regulator d) foreign exchange controller
What is b) central bank
200
143. _____ is the most basic level of international market development and involves shipping domestically produced products overseas. a) Importing b) Exporting c) Franchising d) Licensing
What is b) Exporting
300
121. Which of the following statements is most consistent with the marketing concept? a) The primary purpose of a business is to dominate its market. b) Consumers always care more about price than about quality. c) All aspects of a business organization should focus on the needs of the customer. d) Controlling the market for natural resources can give a firm a huge competitive advantage.
What is c) All aspects of a business organization should focus on the needs of the customer.
300
111. Ross has two different projects he would like to work on this weekend; he wants to paint the spare bedroom or perform some minor repairs on his old ‘83 Chevy. Unfortunately, he doesn’t have time to do both this weekend. The fact that Ross must give up one thing in order to do something else illustrates the concept of a) diminishing returns. b) opportunity cost. c) comparative advantage. d) the hierarchy of needs.
What is b) opportunity cost.
300
103. After the collapse of the dot com bubble and the 9/11 terrorist attacks, the stock market depreciated and unemployment increased leading many to fear that the country was on the brink of a full-blown recession. In order to stimulate the economy the Federal Reserve Bank a) lowered taxes in an effort to increase spending. b) lowered interest rates from 6.5% to 1.25% in an effort to increase spending. c) increased taxes in an effort to increase spending. d) increased interest rates from 1.25% to 6.5% in an effort to increase spending.
What is b) lowered interest rates from 6.5% to 1.25% in an effort to increase spending.
300
169. _____ measures the total value of all final goods and services produced within a nation’s borders over a given period of time. a) The consumer price index b) Gross domestic product c) Net national production d) The production function
What is b) Gross domestic product
300
97. Although many U.S. firms want to expand their sales in nations with high populations, they face some challenges in doing so, including the fact that in many of these nations the a) purchasing power of most citizens is very low. b) governments strongly favor socialist economic policies. c) rate of economic growth is much slower than the growth of less populous nations. d) citizens aren’t as interested in material goods as U.S. citizens.
What is a) purchasing power of most citizens is very low.
400
105. Big Poppa’s Pizzeria will be opening three new locations, bringing new jobs to its community. It also plans to purchase all ingredients from local farms and merchants. With these actions, Big Poppa’s Pizzeria is contributing to a higher _____ for its town’s citizens. a) environmental standard b) quality of life c) city tax base d) standard of living
What is d) standard of living
400
95. Since 1946, advances in technology and the overall decline in worldwide trade barriers have resulted in a) more market opportunities but companies are experiencing greater market competition. b) countries like China and India have experienced no economic growth. c) trade in commodities such as oil and corn is becoming nonexistent as all countries move to produce technology-related products. d) the U.S. has experienced persistent balance of payments surplus.
What is a) more market opportunities but companies are experiencing greater market competition.
400
177. _____ is a period of robust economic growth and high employment indicating that businesses are capitalizing on new market opportunities. a) Expansion b) Recovery c) Depression d) Contraction
What is a) Expansion
400
129. The _____ expresses the value of one nation’s currency in terms of another nation’s currency. a) liquidity ratio b) exchange rate c) countertrade ratio d) discount rate
What is b) exchange rate
400
135. Apple, Inc. has used foreign outsourcing to construct its iPod. The main advantage to foreign outsourcing is a) the positive impact on a nation’s balance of payment. b) increased risk of production. c) improved product quality. d) lower production cost.
What is d) lower production cost.
500
145. Janet owns a modern 600-acre farm that grows corn and soybeans. Which factors of production will Janet need to employ to produce her crops? a) natural resources, human resources, capital, and entrepreneurship b) natural and human resources c) capital and human resources d) entrepreneurship and capital
What is a) natural resources, human resources, capital, and entrepreneurship
500
178. _____ means that prices on average are rising. a) Deflation b) Inflation c) Disinflation d) Hyperinflation
What is b) Inflation
500
110. Early in your first term as President of the United States you faced an economy in the beginnings of a recession. Which of the following would represent an example of a fiscal policy you might suggest to deal with this situation? a) Ask Congress to cut total spending on social programs to avoid running a budget deficit. b) Ask Congress to cut taxes in order to give consumers and businesses more income to spend and invest. c) Order the Fed to raise the required reserve ratio. d) Urge Congress to give the U.S. Treasury the authority to print more money.
What is b) Ask Congress to cut taxes in order to give consumers and businesses more income to spend and invest.
500
127. Recently, I.B. Rheele read in the newspaper that the Federal Reserve chairman had expressed concern about inflation and indicated the Federal Reserve would be taking some action in order to prevent inflation from spiraling out of control. The Federal Reserve could use all of the following tools EXCEPT a) selling government bonds in the open market. b) increasing the discount rate. c) increasing banks reserve requirements. d) increasing government spending on roads and bridges.
What is d) increasing government spending on roads and bridges.
500
94. A comparison of economic indicators among the six most populous nations indicates that the a) U.S. has by far the largest per capita GDP. b) U.S. has the fastest rate of economic growth. c) economy of Brazil is growing the fastest. d) size of the Chinese economy is the second largest, but it is growing very slowly.
What is a) U.S. has by far the largest per capita GDP.