Businesses that operate in an environment where success or failure is determined by how well they match and counter the offerings of competitors are operating under ________.
a. the private enterprise system
b. a social democracy
c. a monopoly
In the U.S. economy, ________ are considered the reward for the risk of entering business.
c generated income amounts
In accounting terms, profits are ________.
a the difference between commissions earned and receipts
b the difference between sales and expenses
c the sum of sales and expenses
d the difference between revenues and expenses
When both China and India develop a(n) _____________ huge opportunities will occur in the global economy.
a Agricultural based economy
b Middle-class society
c Wealthy/upper-class society
d Service based economy
There are 3 billion people in the world who lack basic access to Internet technologies and might never catch up to be a part of the new world economy. This problem is called the _________.
a Underprivileged society
b Digitally disconnected
c Disconnected society
d Digital divide
Monetary policy ________.
a is of limited use in controlling inflation
b is of little use in expanding business spending
c uses interest rate variations and availability of funds to influence the nation's economy
d frequently causes taxes to rise
Two major policy tools are available for controlling economic activity. They are ________.
a interest rate and credit policies
b interest rate and taxing policies
c tax and spending policies
d monetary and fiscal policies
The three major types of economic systems are ________.
a capitalism, planned economies, and mixed economies
b capitalism, oligopoly, and planned economies
c capitalism, pure competition, and planned economies
d capitalism, monopoly, and mixed economies
Over the past decade, which of the following countries had the highest annual rate of GDP growth?
Which state is considered the largest exporter to foreign trade?
a New York
India has acquired a(n) __________ in software development with its educated workforce and low wage scale.
a favorable exchange rate
b absolute advantage
c balance of trade
d comparative advantage
A trade deficit occurs when __________.
a there is a net flow of money into a country
b imports are sold at low profits
c imports exceed exports
d foreign-aid payments exceed exports
Which of the following statements is correct?
a Pure-play online retailers are generally more profitable than bricks and mortar retailers with online operations.
b Dot-coms have lower costs than bricks and mortar retailers with online operations.
c Retailers that combine online selling with a brick and mortar operation are gaining ground over dot-com retailers.
d Dot-com retailers have more user-friendly Web sites than brick and mortar retailers with online operations.
________ is essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.
c Market research
The factors of production in an economic system are ________.
a land, rent, capital, and human resources
b capital, perseverance, natural resources, and human resources
c natural resources, human resources, capital, and entrepreneurship
d rent, wages, interest, and profit
Which of the following is considered to be the most fundamental right of the private enterprise system?
a The right to guaranteed profits.
b The right to fair competition.
c Freedom of choice.
d The right to private property.
The concept of branding first emerged during the ________.
a production era
b age of the industrial entrepreneur
c marketing era
d relationship era
The relationship era is driven by ________.
a advances in marketing research
b advances in communication technology
c an increase in the number of business transactions
d advances in manufacturing technology
When Google opened offices in Tokyo, London, and Sydney, they were utilizing ________ by relocating business activities to lower-cost locations overseas.
d employee sourcing
________ is the ability to perceive marketplace needs and what an organization must do to satisfy these needs.
a Critical thinking
c Social responsibility
Business ethics begins with ________.
a a firm's customers
b a code of conduct
c the individual employee
d the government
During an economic recovery, consumer spending ________ and unemployment ________.
a decreases; increases
b decreases; decreases
c increases; decreases
d increases; increases
Tanisha is a diabetes educator at a local clinic. Recently she was offered a lavish trip by a sales rep who has been pushing the clinic to use his company's diabetes supplies. Tanisha declined the gift. Which ethical challenge did she face?
a cultural consequences
b honesty and integrity
c conflict of interest
How should a businessperson deal with a conflict of interest?
a disclose it
b disclose it or avoid it
c not worry about it
d avoid it
Monopolistic competition has ________.
a only one seller
b many buyers and sellers, none of whom can control prices
c only a few sellers
d many buyers and sellers, and the sellers have some control over price
A country has a strong private sector, along with publicly owned enterprises. Entrepreneurs and private-sector investors are entitled to profits, after taxes, and even state-owned enterprises are expected to at least break even. What type of economic system does this country have?
a mixed economy
Which of the following are considered to be trade restrictions?
a import quotas and embargoes
b import quotas and foreign trade zones
c tariffs and social values
d embargoes and foreign trade zones
Which statement is true about less developed countries?
a They have little access to imports.
b They do not participate in the global marketplace.
c Their share of the world population will increase in the coming years.
d The size of their populations is enough to create a market for goods and services.
During a meeting with government regulators, Nicole voluntarily points out a potential problem with a new product her company is testing. Nicole has shown ________.
According to consumer surveys, one of the main reasons customers shop online is the __________.
a better selection
c security of online ordering
d ease of online ordering
In a global economy, economists consider ________ to be the key economic resource.
c Natural resources
Barriers to entry into an industry are highest in ________.
a monopolistic competition
b a monopoly
c an oligopoly
d pure competition
Which of the following is NOT considered a factor of production?
Organizations must always look for opportunities to create _________ for their customers in order to achieve long-term success.
c Better products
Ashley wants to increase the profits of her business. What two ways can she accomplish her goal of increasing profits?
a Cutting back on expenses and increasing sales
b Increasing the number of employees and increasing sales
c Increasing good expenses and decreasing bad expenses
d Expanding her website and increasing her inventory