question

A need is something that you desire to have because someone else has one.

answer

False

question

One of the problems in economics is that wants are unlimited.

answer

True

question

There are only two kinds of economic resources: human and capital.

answer

False

question

Labor is another name for human resources.

answer

True

question

Some resources, such as clean air and water, are limited.

answer

True

question

Scarcity is a problem that is faced by individuals and businesses but not by governments.

answer

False

question

Economic decision making is important to businesses and governments but not to individuals.

answer

False

question

Economic decision making is a process requiring four important steps.

answer

False

question

An arrangement that allows buyers and sellers to come together to trade goods, services, and resources is called a market.

answer

True

question

Determining which of its citizens should benefit from the production of goods and services something each nation must decide.

answer

True

question

When the government hires new employees, it is participating in the marketplace.

answer

True

question

In a system of capitalism, the government decides what will be produced with the resources available.

answer

False

question

In the private enterprise system, you may start or invest in any business as long as it is not illegal to do so.

answer

True

question

The profit motive is designed to allow lazy owners to become rich.

answer

False

question

The three roles that everyone must perform are worker, consumer, and saver.

answer

False

question

Quantity demanded means the quantity of products and services that consumers are willing and able to buy at a particular price.

answer

True

question

Quantity supplied means the quantity of a product or service that businesses are willing and able to provide at a particular price.

answer

True

question

Success in your role as a worker will affect your standard of living.

answer

True

question

When you pay your taxes, you are performing your citizen role.

answer

True

question

Economic growth refers to a steady increase in the production of goods and services in an economics system.

answer

True

question

There are over 120 million workers in the U.S. economy.

answer

True

question

The GDP in our economy has declined steadily for the past few years.

answer

False

question

Changes in the business cycle form a pattern of good times to bad times and back.

answer

True

question

Recovery in the business cycle occurs after a period of inflation.

answer

False

question

The production process of getting goods to consumers usually requires only one business.

answer

False

question

A supermarket, a bank, and a utility company are all examples of businesses.

answer

True

question

Marketing involves just transporting and selling products.

answer

False

question

Marketing activities add value to a product.

answer

True

question

Building a specific, unique product for one customer is called processing.

answer

False

question

Mass production is not the standard of U.S. manufacturing.

answer

False

question

Service businesses are the fastest growing part of our economy.

answer

True

question

All businesses must raise capital, use human resources, and keep records.

answer

True

question

One of the eight marketing functions is risk management.

answer

True

question

Consumers often have a negative or narrow view of marketing.

answer

True

question

The marketing strategy is a two-step process.

answer

True

question

Buying motives can be rational or emotional.

answer

True

question

A wholesaler sells directly to consumers.

answer

False

question

If a company has a limited supply of a product, it may lower its price.

answer

False

question

Effective personal selling includes contact with the customer after the purchase.

answer

True

question

Another term for international business is foreign or world trade.

answer

True

question

among the advantages enjoyed by the U.S. in world trade is our own production of wool and oil.

answer

False

question

It is necessary for the U.S. to import a variety of metals.

answer

True

question

There are a number of challenges involved with international trade, but currency exchange rates are not one of them.

answer

False

question

A limit set on the quantity of a product that can be imported or exported is called an embargo.

answer

False

question

A balance of payments and a balance of trade are the same thing.

answer

False

question

A business budget anticipates sources and amounts of income.

answer

True

question

Expenses include the total revenue minus operating costs of the small business.

answer

False

question

The most important step in financial planning is developing an income statement.

answer

False

question

In a small business, the budgeting goals are much the same as in a household-- to determine what the sources of income are and how they will be distributed.

answer

True

question

Budgets identify the financial plans of a business.

answer

True

question

Which of the following is NOT a need? •food •housing •car •clothing

answer

car

question

Members of a family might not be able to afford the things they want because of an economic factor called ________.

answer

the basic economic problem

question

What step is defining the problem in the decision-making process?

answer

first

question

A weekend skiing trip, a summer home at the lake, and a new 32-inch stereo television are all examples of ______.

answer

wants

question

Which of the following is NOT one of the three key economic questions? •What goods and services should be produced? •For whom should goods and services be produced? •When should the production of goods and services take place? •How should goods and services be produced?

answer

When should the production of goods and services take place?

question

Which of the following are characteristics of capitalism? •Economic resources are privately owned. •Individuals are free to decide what to produce. •Decisions about production and distribution are made through voluntary exchange.

answer

All

question

Which of the following is the best definition of profit? •the money a business takes from its sale •the money left from sales after expenses have been paid •an operational device that makes business owners rich •what is left after all merchandise has been sold

answer

the money left from sales after expenses have been paid

question

The "new rights" in previously controlled economies include ______.

answer

•the right to earn a fair profit, •the right to do business with minimal government regulation •the right to fail

question

A weekend skiing trip, a summer home at the lake, and a new 32-inch stereo television are all examples of _______.

answer

wants

question

Some of our wants are satisfied through the efforts of other people. These are called ______.

answer

services

question

You must make a choice. Either go to the concert or buy the group's new CD. If you buy the CD, you will miss going to the concert with your friends but you will have the music to pay whenever you want. In the decision-making process, you are ______.

answer

evaluating the advantages and disadvantages of each choice

question

The employees who work in an automobile assembly plant are that company's _____.

answer

human resources

question

Which of the following is NOT one of the economic roles performed in our economy? •worker •citizen •leader •consumer

answer

leader

question

What is the effect of dollar votes by consumers?

answer

•demand is affected •businesses learn about consumer preferences •businesses are helped in making decisions

question

Which of the following is NOT true about prices? •If prices are too high, consumers won't buy. •If prices are too low, businesses will not earn a profit. •Prices are affected by both supply and demand. •Setting a price does not require any study by a business.

answer

Setting a price does not require any study by a business.

question

The factor that helps to keep prices at a reasonable level is ____

answer

Competition among businesses

question

Which of the following is true about your citizen role? •voting is not part of it •keeping informed is not important •decisions made are individual and not collective •it helps provide goods and services needed by the community

answer

It helps provide goods and services needed by the community

question

Collective decision making means that _____

answer

citizens as a group influence community decisions

question

The quantity of a good or service that businesses are willing and able to sell at a particular price is called _____

answer

quantity supplied

question

Which of the following would NOT be counted in computing GDP? •building a do-it-yourself picnic table for your own yard •hamburgers you flip on your job at a fast-food restaurant •a pair of socks you sell on your job at a department store

answer

building a do-it-yourself picnic table for your own yard

question

When the effect of price changes is taken out of GDP, we have ______

answer

real GDP

question

Which of the following is true about the business cycle? •it has four phases •there are recurring ups and owns •there is a pattern of good times to bad times and back again

answer

all

question

Prosperity is the condition when _____

answer

the business cycle is at its high point

question

The future of our economy is characterized by _____

answer

serious problems that must be faced

question

This is when citizens decide how public goods will be provided for their common use.

answer

collective decision making

question

The quantity of a good that an average worker can produce in an hour is know as _____

answer

labor productivity

question

The business that takes raw materials and turns them into some usable form is known as

answer

a manufacturer

question

A firm that creates a product to meet a customer's specifications engages in _____

answer

custom manufacturing

question

Changing something from one form to another so it can be consumed or used to make something else is known as ____

answer

processing

question

Getting the product from the producer into the hands of the consumer is just one function of ____

answer

marketing

question

Understanding labor laws, hiring employees, and training staff are all functions of ____

answer

human resources

question

The eight marketing functions do NOT include ______

answer

manufacturing

question

Anything offered to the target market to satisfy their needs is

answer

the product

question

Maximizing profits, increasing sales, and maintaining an image are objectives related to _____

answer

pricing

question

Which of the following is the set of activities that ensures a smooth exchange relationship between businesses and consumers?

answer

marketing

question

When we develop a product or service with a specific group of customers in mind, we are considering the

answer

target market

question

The path that a product follows when moving from producer to consumer is called

answer

channel of distribution

question

Reinforcing the purchase decision, or simply reminding customers that they have made the right choice, is a function of ____

answer

Promotion

question

Which of the following is used to completely stop the import or export of a product? •embargo •tariff •duty •tax

answer

embargo

question

Which of the following are barriers to international trade? •quotas •tariff •duty •tax

answer

all

question

If you own your own small business, the money you receive is called

answer

revenue

question

A budget that estimates income and expenses from the beginning of the business until it becomes profitable is called a

answer

start-up budget

question

A balance sheet lists

answer

assets and liabilities

question

When expenses are greater than income, the result is

answer

a net loss

question

What statements do business owners review to determine how their businesses are performing?

answer

financial statements

question

Which of the following restaurants would be opened as a result of ethnic cultural diversity in the United States? •Burgers R' Us •Dan's Dogs and Sandwiches •Wang's Chinese Restaurant •May Lou's Soup and Sandwich Shop

answer

Wang's Chinese Restaurant

question

Financial information on similar businesses and industries are available in

answer

•Forbes •Fortune •The Wall Street Journal

question

What are the two most used financial statements?

answer

Balance sheet and income statement

question

Which of the following would show the wages of the company employees? •credit accounts •inventory •payroll •assets

answer

payroll

question

If Rick Adamson's business income was $85,900, and his expenses were $48,100, how much would his net profit be?

answer

$37,800

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