Question 1

Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the ____ stage of the business cycle.

Accepted Answer

A)   Recession
B)   Recovery
C)   repression
D)   prosperity
E)   TroughF) A) and C)
G) A) and B)

Question 2

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time.

Accepted Answer

A) True 
 B)False

Question 3

To compare the productivity of the United States to that of Japan, one should examine their respective

Accepted Answer

A)   defence budgets.
B)   trade deficits.
C)   gross domestic products.
D)   stock markets' performance.
E)   consumer price indices.F) A) and B)
G) B) and C)

Question 4

During which stage of the business cycle would a company such as Intel begin to focus on being more value conscious in its production decisions?

Accepted Answer

A)   Depression
B)   Peak
C)   Recession
D)   Trough
E)   RecoveryF) A) and B)
G) All of the above

Question 5

In the early 1980s, David Jimenez, a corporate finance manager, was faced with which of the following problems?

Accepted Answer

A)   High inflation rates
B)   Competition from e-business firms
C)   Too much productivity
D)   Declining interest rates
E)   A decline in the use of specialisationF) D) and E)
G) A) and B)

Question 6

Specialisation is meant to increase the efficiency of industrial workers.

Accepted Answer

A) True 
 B)False

Question 7

In the mid-1970s, auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation.This happened because manufacturers

Accepted Answer

A)   lost sight of consumers' needs.
B)   attempted to satisfy consumers' needs.
C)   followed consumers' wants too closely.
D)   knew the economy would rise again.
E)   did not expect a profit.F) A) and B)
G) C) and D)

Question 8

The system in which raw materials are distributed by entrepreneurs to homes in which family members process those materials into finished products is referred to as

Accepted Answer

A)   the factory system.
B)   an apprenticeship.
C)   specialisation.
D)   free enterprise.
E)   the domestic system.F) B) and D)
G) C) and D)

Question 9

Which of the following is not a characteristic of the Great Depression?

Accepted Answer

A)   Stock prices decreased.
B)   It was a period of misery and human suffering.
C)   There was a near collapse of the nation's economy.
D)   The government became less involved in business activities.
E)   People lost faith in business and its ability to satisfy society's needs.F) A) and E)
G) None of the above

Question 10

As the price of a product increases, the amount of the product that a producer is willing to supply increases.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a characteristic of an oligopoly?

Accepted Answer

A)   There are few sellers.
B)   The seller has considerable control over price.
C)   Any duplication of facilities is wasteful.
D)   Sizable investments are required to enter the market.
E)   The market actions of each seller can strongly affect other sellers.F) B) and E)
G) A) and B)

Question 12

Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.

Accepted Answer

A)   repression
B)   prosperity
C)   recession
D)   trough
E)   recoveryF) B) and C)
G) A) and E)

Question 13

Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a nation's economy.

Accepted Answer

A) True 
 B)False

Question 14

The government uses taxes to purchase resources and products required to provide services.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a characterisation of a depression?

Accepted Answer

A)   High unemployment rates
B)   Lower stock values
C)   Two or more consecutive six-month periods of GDP decline
D)   General decrease in business activity
E)   General lack of confidence in the economy by members of the populationF) B) and E)
G) D) and E)

Question 16

Capital or capital goods as recognised by economists would include all of the following except

Accepted Answer

A)   crude oil.
B)   facilities.
C)   money.
D)   machinery.
E)   computer equipment.F) D) and E)
G) C) and D)

Question 17

Today, managers and employees are no longer concerned about cultural diversity.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are material resources for Toyota Motor Company except

Accepted Answer

A)   paint.
B)   steel.
C)   factory.
D)   tires.
E)   money.F) C) and E)
G) All of the above

Question 19

According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference.

Accepted Answer

A) True 
 B)False

Question 20

The consumer price index (CPI)

Accepted Answer

A)   is a quarterly index that producers receive for their finished goods.
B)   measures increases or decreases in the level of worker performance.
C)   is the price of metals, lumber, and raw materials.
D)   measures prices paid during periods of deflations.
E)   is a monthly index that tracks the prices paid by consumers.F) B) and E)
G) A) and E)

Exam 1: Introduction to Business

The system in which raw materials are distributed by entrepreneurs to homes in which family members process those materials into finished products is referred to as

Correct AnswerverifiedShow Answer

In the mid-1970s, auto manufacturers produced big gas-guzzling cars and tried to sell them to consumers who needed fuel-efficient transportation.This happened because manufacturers

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of an oligopoly?

Correct AnswerverifiedShow Answer

During which stage of the business cycle would a company such as Intel begin to focus on being more value conscious in its production decisions?

Correct AnswerverifiedShow Answer

The consumer price index (CPI)

Correct AnswerverifiedShow Answer

Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a nation's economy.

Correct AnswerverifiedShow Answer

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time.

Correct AnswerverifiedShow Answer

According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference.

Correct AnswerverifiedShow Answer

Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.

Correct AnswerverifiedShow Answer

As the price of a product increases, the amount of the product that a producer is willing to supply increases.

Correct AnswerverifiedShow Answer

Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the ____ stage of the business cycle.

Correct AnswerverifiedShow Answer

Capital or capital goods as recognised by economists would include all of the following except

Correct AnswerverifiedShow Answer

To compare the productivity of the United States to that of Japan, one should examine their respective

Correct AnswerverifiedShow Answer

All of the following are material resources for Toyota Motor Company except

Correct AnswerverifiedShow Answer

The government uses taxes to purchase resources and products required to provide services.

Correct AnswerverifiedShow Answer

In the early 1980s, David Jimenez, a corporate finance manager, was faced with which of the following problems?

Correct AnswerverifiedShow Answer

Which of the following is not a characterisation of a depression?

Correct AnswerverifiedShow Answer

Today, managers and employees are no longer concerned about cultural diversity.

Correct AnswerverifiedShow Answer

Specialisation is meant to increase the efficiency of industrial workers.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of the Great Depression?

Correct AnswerverifiedShow Answer

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