Business 1010-1 Quiz – Flashcards
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A federal deficit exists when government spends more than it receives. T or F
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True
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Through fiscal policy, the government can influence the amount of savings and expenditures by altering the tax structure and changing the levels of government spending. T or F
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True
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Terms equillibrium price and market price mean the same thing. T or F
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True
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Specialization is the separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals.
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True
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The four factors of production include natural resources, prices, information, and entrepreneurship.
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False
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On the average, Jane produces eight units within one hour. This is considered her productivity rate.
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True
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Economics is a system in which individuals own and operate the majority of businesses that provide goods and services.
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False
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The gross domestic product is the total dollar value of all goods and services produced by all people within the boundaries of a specific nation during a one-year period.
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True
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omists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product.
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True
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Our business system today can be best described as a _______ economy.
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Mixed
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Which term describes the recurrence of periods of growth and recession in a nation's economic activity?
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Business cycle
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The four kinds of business resources are what?
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material, human, financial, and informational
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Which of the following is a material resource for a book publisher like Cengage Learning?
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The printing press
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In Adam Smith's view, which of the following is NOT the role of government?
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Welfare and retirement income
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A study of the economic effect of taxes, government spending, and interest rates on a nation is best described as:
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Macroeconomics
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Which of the following is NOT an example of a factor of production?
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A patent
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Which of the following is NOT one of the states in a business cycle?
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Profitability
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When the Federal Reserve makes decisions about interest rates, it is influencing
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Monetary policy
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An economic system in which the government decides what goods and services will be produced is referred to as a:
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Command economy
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A situation in which the government spends more than it receives is referred to as a:
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Federal deficit
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Free enterprise is a system in which individuals decide what to produce, how to produce it, and at what price to sell it.
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True
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Microeconomics is the study of decisions made about the national and global economies.
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False
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People who invest their time, effort, and money to start a small retail store are called middlemen.
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False
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When a firm's sales revenue is greater than its expenses, it has sustained a business loss.
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False
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Under a socialist economy, key industries are owned and controlled by the government.
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True
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Approximately 70 percent of consumer products are purchased by businesses
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False
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Adam Smith argues that under capitalism the creation of wealth is a concern of the government.
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False
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Ireland is the fastest growing economy in the world
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False
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In a monopoly market, the price of each product is determined by the actions of all buyers and sellers together.
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False
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During the Industrial Revolution, specialization was implemented in factories to improve productivity.
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True
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A person who risks his or her time, effort, and money to start and operate a business is called
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Entrepreneur
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Laissez-faire capitalism stems from the theories of
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Adam Smith
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Which of the following is an aspect of laissez-faire capitalism?
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Private ownership of property
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Which question fails to determine a nation's economy?
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How will profits be distributed
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A good example of pure competition is the buying and selling of
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Corn
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In an oligopoly:
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There are few sellers
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In a monopoly, a seller
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can set even an astronomical price because no one else produces the product.
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Inflation-adjusted figures are used to measure the real ________ for a nation.
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Gross domestic product
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In the workplace, the difference between a thirty-year-old female of Arabic ancestry and an African-American male, age 25, is called
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Cultural DIversity
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A common measure that is NOT used to evaluate a nation's economy is:
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Prime Interest Rate
