5.01
Which is an example of an economic service?
A. car stereo
B. concert ticket
C. tennis shoes
D. baseball glove
B. concert ticket
A major characteristic of a market economy is which type of ownership of property?
A. monopolistic
B. limited
C. government
D. private
D. private
Business ethics involve considering issues about what is:
A. positive and negative.
B. legal and illegal.
C. safe and unsafe.
D. right and wrong.
D. right and wrong.
When government sets safety standards for the workplace, it is attempting to
A. minimize risks to employees.
B. control business.
C. prohibit excess standards.
D. modernize working environments.
A. minimize risks to employees.
The formula that is generally used to measure productivity is:
A. outputs divided by inputs.
B. labor divided by resources.
C. goods divided by time.
D. inputs divided by labor.
A. outputs divided by inputs.
A killing frost destroys 80% of Florida's citrus crop. This will most likely create:
A. Pure competition
B. A buyer's market
C. A seller's market
D. Inelastic demand
C. A seller's market
Which represents a natural risk for the owner of a delivery service?
A. snowstorm
B. accident
C. rising prices
D. government intervention
A. snowstorm
Businesses that successfully adapt to current market situations often realize that:
A. cutting costs is important.
B. more financing is necessary.
C. diversification is the key.
D. change is an opportunity.
D. change is an opportunity.
Which of the following is a positive effect of government regulation:
A. Legal protection
B. Unfair competition
C. Increased inflation
D. Price controls
A. Legal protection
At PME Company, four employees worked 25 hours a week and produced 4,200 products. What is the total hourly production output?
A. 42
B. 168
C. 262
D. 1,050
A. 42
The usefulness of a product to consumers is referred to as product:
A. Scarcity
B. Utility
C. Allocation
D. Consumption
B. Utility
A business selects goods or services to sell. Which type of risk is this business using?
A. transferring risk
B. controlling risk
C. bypassing risk
D. avoiding risk
B. controlling risk
Which is an example of an economic factor that affects the business environment?
A. business cycle
B. employee morale
C. management style
D. long-term goals
A. business cycle
One reason that has caused the government's role in business to expand is that:
A. people's attitudes have changed.
B. costs of production have continued to increase.
C. products have become very technical.
D. competition in the marketplace has increased.
A. people's attitudes have changed.
If three employees each work 35 hours a week and produce a total of 9,765 items, what is their total hourly productivity level?
A. 67
B. 31
C. 93
D. 105
C. 93
Which change provides the most time utility for a consumer?
A. staying open for business on the weekend
B. arriving at a product trade show early
C. shopping for a product in the morning
D. asking for early delivery of a product
A. staying open for business on the weekend
Which is an example of a speculative business risk?
A. A special promotion fails to increase sales.
B. A supplier's shipment is lost in transit.
C. A cashier gives unauthorized discounts to friends.
D. A customer is injured at a business and sues the company.
A. A special promotion fails to increase sales.
Which situation would most likely indicate the need to adapt to changes in the business environment?
A. The supply of materials used in manufacturing a product has decreased.
B. The number of the business's competitors has decreased.
C. The demand for the product is stable.
D. The business has experienced little employee turnover during the past year.
A. The supply of materials used in manufacturing a product has decreased.
Determine whether the following statement is true or false: Government has become an active participant in the world of business.
A. True; government produces goods and services.
B. True; government helps to start monopolies.
C. False; government works with businesses only.
D. False; government doesn’t produce any products.
A. True; government produces goods and services.
DOUBLE JEOPARDY
Calculate the individual hourly worker productivity if eight workers produced 5,000 products and each worked 40 hours that week. (round up to a whole number)
A. 625
B. 125
C. 16
D. 15
C. 16
Which situation would cause prices to rise?
A. The corn crop is unusually large one summer.
B. Insects destroy a large cotton crop.
C. Animal rights activists march in front of a fur store.
D. A newspaper article describes poor service provided by a hotel.
B. Insects destroy a large cotton crop.
A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?
A. Celler-Kefauver Act
B. Clayton Act
C. Sherman Act
D. Robinson-Patman Act
B. Clayton Act
A small-business owner whose business is a sole proprietorship is planning to “go global.” What method for going global would be best to recommend to the small-business owner?
A. Start by hiring an export management company.
B. Start by building facilities in the countries of interest.
C. Start by merging with a foreign business that can sell your products.
D. Start by renting facilities in the countries of interest and hiring foreign employees
A. Start by hiring an export management company.
Which of the following was one of government’s original roles in business:
A. Acting as a referee
B. Regulating technology
C. Ensuring a business’s profitability
D. Protecting the environment
A. Acting as a referee
The productivity of an individual worker can be measured by:
A. The productivity of an individual worker can be measured by:
B. dividing the total number of products produced by the number of production steps.
C. dividing the dollar totals of sales by the costs of making all of those sales.
D. dividing the number of customers served by the number of hours an employee worked.
D. dividing the number of customers served by the number of hours an employee worked.