Question 1

After demand began to accelerate beyond supply,Mrs.Acres Homemade Pies was faced with a series of options.Which of the following is NOT one of those options?

Accepted Answer

A)  Maintain current production levels and raise prices
B)  Expand the facility and staff while maintain price
C)  Contract the production of pies to a national restaurant chain
D)  Maintain current levels of product and reduce the price
E)  Increase production and maintain the priceF) B) and C)
G) None of the above

Question 2

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

Accepted Answer

A)  consumers.
B)  owners.
C)  bankers.
D)  government regulators.
E)  employees.F) D) and E)
G) A) and B)

Question 3

Owners have little responsibility to provide funds for the operation of the business.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  economic contraction.
B)  inflation.
C)  deflation.
D)  a budget deficit.E) A) and C)
F) C) and D)

Question 5

The standard of living rises because people have less money to spend.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  fun.
B)  socially responsible.
C)  hard-working.
D)  egalitarian.
E)  transparent.F) D) and E)
G) A) and C)

Question 7

Economic expansion occurs when

Accepted Answer

A)  fewer goods and services are produced than consumers demand.
B)  an economy is growing and people are spending more money.
C)  a nation's standard of living drops quickly.
D)  employment levels decline over time.
E)  prices begin to rise and incomes begin to fall.F) B) and D)
G) A) and E)

Question 8

Profit is what it costs to make and sell a product.

Accepted Answer

A) True 
 B)False

Question 9

What are the people and activities of business? Define each group.

Accepted Answer

The people of business are owners,employ...

Question 10

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

Accepted Answer

A)  socialism
B)  laissez-faire capitalism
C)  modified capitalism
D)  communism
E)  business ownershipF) B) and C)
G) D) and E)

Question 11

Entrepreneurs risk their wealth,time,and effort to develop for profit an innovative product or way of doing something.

Accepted Answer

A) True 
 B)False

Question 12

Owners always manage their businesses.

Accepted Answer

A) True 
 B)False

Question 13

Equal distribution of income and social services is also referred to as:

Accepted Answer

A)  communism.
B)  egalitarianism.
C)  capitalism.
D)  equality.
E)  democracy.F) A) and B)
G) A) and E)

Question 14

The functions of organizing,staffing,planning,and controlling are most closely associated with

Accepted Answer

A)  employees.
B)  customers.
C)  managers.
D)  stockholders.
E)  accountants.F) A) and E)
G) B) and E)

Question 15

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

Accepted Answer

A)  the government
B)  the people
C)  businesses
D)  supply and demand
E)  suppliersF) D) and E)
G) A) and B)

Question 16

All of the following are associated with the manufacturing economy except

Accepted Answer

A)  buying on credit.
B)  marketing.
C)  advertising.
D)  cable television.
E)  marketing research.F) B) and C)
G) A) and B)

Question 17

Products have tangible attributes only.

Accepted Answer

A) True 
 B)False

Question 18

Businesses have the right to keep and use their profits as they choose,without limitations.

Accepted Answer

A) True 
 B)False

Question 19

Countries measure the state of their economies to

Accepted Answer

A)  determine whether they are expanding or contracting.
B)  regulate wages and employment.
C)  let other nations know the state of their economic health.
D)  avoid taking corrective action.
E)  control government spending.F) B) and E)
G) D) and E)

Question 20

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

Accepted Answer

A)  publicity
B)  promotion
C)  marketing research
D)  management activities
E)  the marketing mixF) A) and B)
G) B) and C)

Exam 1: The Dynamics of Business and Economics

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

Correct AnswerverifiedShow Answer

Entrepreneurs risk their wealth,time,and effort to develop for profit an innovative product or way of doing something.

Correct AnswerverifiedShow Answer

What are the people and activities of business? Define each group.

Correct AnswerverifiedThe people of business are owners,employ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Countries measure the state of their economies to

Correct AnswerverifiedShow Answer

Businesses have the right to keep and use their profits as they choose,without limitations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

After demand began to accelerate beyond supply,Mrs.Acres Homemade Pies was faced with a series of options.Which of the following is NOT one of those options?

Correct AnswerverifiedShow Answer

Owners always manage their businesses.

Correct AnswerverifiedShow Answer

All of the following are associated with the manufacturing economy except

Correct AnswerverifiedShow Answer

The functions of organizing,staffing,planning,and controlling are most closely associated with

Correct AnswerverifiedShow Answer

Owners have little responsibility to provide funds for the operation of the business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Products have tangible attributes only.

Correct AnswerverifiedShow Answer

The standard of living rises because people have less money to spend.

Correct AnswerverifiedShow Answer

Profit is what it costs to make and sell a product.

Correct AnswerverifiedShow Answer

Economic expansion occurs when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Equal distribution of income and social services is also referred to as:

Correct AnswerverifiedShow Answer

Correct Answer
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The people of business are owners,employ...
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