Business Management chp. 1 practice

question

In a socialist system, citizens are dependent on ______ for many goods and services.
answer

the government
question

T/F? A product’s equilibrium price is constantly changing in response to changes in economic conditions, availability of resources, and degree of competition.
answer

true
question

In the history of the American economy, the period or stage following the Industrial Revolution was known for its emphasis on ______.
answer

manufacturing
question

When there is only one business providing a product in a given market, there exists a ______.
answer

monopoly
question

A continuing rise in prices over a period of time refers to _____.
answer

inflation
question

Factors of production are ________
answer

resources used to produce goods and services
question

Countries measure the state of their economies to _______.
answer

determine whether they are expanding or contracting
question

Agricultural commodities are usually sold under which competitive environment?
answer

pure competition
question

The goal of business is to earn ______.
answer

profits
question

A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a _______.
answer

budget deficit
question

What’s not a product?
answer

A business profit
question

Financial resources are also known as _____.
answer

capital
question

The entrepreneur has been primarily associated with willingness to ____.
answer

take risks
question

T/F? In a free-market system, the government regulates business.
answer

False
question

_________ competition exists when there are many small businesses selling one standardized product.
answer

Pure competition
question

When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably _______.
answer

monopolistic competition
question

The function concerned with obtaining and managing money and using it effectively is called _______.
answer

finance
question

Equal distribution of income and social services is also referred to as _______.
answer

egalitarianism
question

The group of people to whom the management activity most applies is ________.
answer

employees
question

The American economic system is best described as _________ because the government regulates business to preserve competition and protect consumers and employees.
answer

modified capitalism
question

In a socialist economic system, people are free to choose an occupation of their choice, but many people work in ______ jobs.
answer

government
question

When Target has a sale on bed linens, ________.
answer

consumers will demand more linens
question

T/F? The focus of all marketing activities is customer satisfaction.
answer

True
question

Economic contraction occurs when _________.
answer

spending declines
question

T/F? Managers coordinate resources to achieve the firm’s goals.
answer

True
question

T/F? Businesses have the right to keep and use their profits as they choose, without limitations.
answer

False
question

What is the primary lesson to be learned from the economic scandals of the early 21st century?
answer

Ethical conduct and corporate social responsibility are very important.
question

T/F? A severe recession may turn into a depression.
answer

True
question

Customers, employees, and investors are examples of _______.
answer

stakeholders
question

. If a business is to be successful in the long run, it must produce quality products, operate efficiently, and be ______.
answer

socially responsible
question

________ is often called the father of capitalism
answer

Adam Smith
question

______ have both tangible and intangible characteristics.
answer

Products
question

T/F? Owners always manage their businesses.
answer

False
question

When a business fails or does not make a profit, ______ have the most to lose.
answer

owners
question

_______ have the most to lose if the business fails to make a profit.
answer

Owners
question

T/F? Nonprofit organizations such as Habitat for Humanity do not engage in management, marketing, or finance activities.
answer

False
question

When Apple introduced the iPad, the price of and demand for netbook and notebook computers were high. As a result, ________.
answer

other suppliers introduced competing products to take advantage of the demand
question

In a capitalist system, individuals own and operate ______.
answer

the majority of businesses
question

T/F? Monopolistic competition exists when there is only one producer of a product in a given market.
answer

False
question

T/F? Free-market capitalism and laissez-faire capitalism are essentially the same thing.
answer

True
question

T/F? Thomas Edison was an American entrepreneur.
answer

True
question

Advertising, personal selling, coupons, and sweepstakes are forms of _____.
answer

promotion
question

T/F? Most socialist nations are democratic.
answer

True
question

Increased unemployment can reduce consumer demand for goods and services, leading to _____.
answer

deflation
question

T/F? Profit is what it costs to make and sell a product.
answer

False
question

Using the supply and demand curves shown in the graph that follows, what is the equilibrium price for soft drinks?
answer

The equilibrium price is where the supply and demand curves intersect.
question

T/F? Gross domestic product is the sum of all goods and services produced in a country during a year.
answer

True
question

T/F? An oligopoly exists when there are many small businesses selling one standardized product.
answer

False
question

All the following are factors of production used to make goods and services:
answer

natural resources, financial resources, human resources, and capital.
question

T/F? When a nation takes more from taxes than it spends, it has a budget deficit.
answer

False

Get instant access to
all materials

Become a Member