Scheduled maintenance: Wednesday, February 8 from 10PM to 11PM PST
Upgrade to remove ads
Only $35.99/year

Business 1301 Ch 1 quiz

Terms in this set (20)

Which of the following is NOT an example of a service?
Answer: Smartphone.

- Most people associate the word product with tangible goods. However, a product can also be a service, which occurs when people or machines provide or process something of value to customers. Some examples of services include dry cleaning, a telemedicine visit, and a movie or sports event.
Diya wants to sell her single-family home, so she hires a realtor. The home is an example of a product that is a(n)
A home is -Tangible Item
________ is the primary goal of business.
Answer: Profit
-The primary goal of all businesses is to earn a profit, the difference between what it costs to make and sell a product and what a customer pays for it.
________ is an important element of the management activity in a business.
Answer: Operations
-Operations is an element of management. Managers must oversee the firm's operations to ensure that resources are successfully transformed into goods and services.
Morgan owns XYZ Corp., but after a year of operation the company has yet to earn a profit. Who has the most to lose if XYZ Corp. fails?
Answer: Morgan

-It is the primary responsibility of the owners to provide financial resources for the operation of the business. Moreover, the owners have the most to lose if the business fails to make a profit.
________ plan and develop products and make decisions about how much to charge for their products and when and where to make them available.
Answer: Marketers

-Marketing includes all the activities designed to provide goods and services that satisfy customers' needs and wants. Marketers gather information and conduct research to determine what customers want. They also plan and develop products and make decisions about how much to charge for their products and when and where to make them available.
All of the following are examples of mixed economies except...

-in socialist France, the French government owns the postal service industry.
-in capitalist United States, an independent federal agency operates the postal service.
-in communist China, state capitalism is used to advance the economy.
-in socialist Sweden, most businesses are owned and operated by private individuals.
-in once-communist Russia, private ownership of businesses has been implemented.
Answer: -in socialist France, the French government owns the postal service industry.

Explanation
in socialism, the government owns and operates basic industries. For example, the French government owns the postal service industry. Mixed economies have elements from more than one economic system. For instance, in socialist Sweden, most businesses are owned and operated by private individuals; in capitalist United States, an independent federal agency operates the postal service; in once-communist Russia, private ownership of businesses has been implemented; and in communist China, state capitalism has been used to advance the economy.
Which of the following was the first communist country to make strong economic gains by adopting capitalist approaches to business?
Answer: China
-China has become the first communist country to make strong economic gains by adopting capitalist approaches to business. Economic prosperity has advanced in China with the government claiming to ensure market openness, equality, and fairness through state capitalism.
Which of the following is a true statement about a socialist system of economy?
Answer:
Central planning determines what basic goods and services are produced.

-In socialist systems, competition is restricted in major industries; encouraged in small business. Central planning determines what basic goods and services are produced, how they are produced, and how they are distributed. Individuals and small businesses provide other goods and services based on consumer demand and the availability of resources.
The wheat market in one particular country has a large number of sellers and buyers, and there is no difference in the products sold by each seller. As a result, prices are determined by the
Answer: Forces of supply and demand
-Because no one business sells enough agricultural commodities to influence the price and there are no differences among the commodities, prices are determined solely by forces of supply and demand.
Which of the following is true regarding an oligopoly?
Answer: Prices charged by different firms stay fairly close because a price cut or increase by one company will trigger a similar response from another company.

-An oligopoly exists when there are very few businesses selling a product. In an oligopoly, individual businesses have control over their products' price because each business supplies a large portion of the products sold in the marketplace. Nonetheless, the prices charged by different firms stay fairly close because a price cut or increase by one company will trigger a similar response from another company.
Economic expansion occurs when
Answer: an economy is growing and people are spending more money

-When people spend more money, it stimulates the production of goods and services, which in turn stimulates employment.
________ measures changes in the prices of goods and services purchased for consumption by typical urban households.
Answer: Consumer Price Index

-Consumer price index measures changes in prices of goods and services purchased for consumption by typical urban households.
Which of the following statements is true about GDP as a measure of a country's economic health?
Answer: It measures only those goods and services made within a country.

-GDP measures only those goods and services made within a country and therefore does not include profits from companies' overseas operations
At one point in time, the United States balanced the money it spent for social, defense, and other programs with the amount of money it took in from taxes. This is an example of eliminating a...
Answer: Budget Deficit
-If a country balances the money it spends for social, defense, and other programs with the amount of money it takes in from taxes, it is eliminating a budget deficit.
Which of the following is a characteristic of a service economy?
Answer: It is devoted to producing services that make life easier for busy consumers.

-Time-pressed Americans are increasingly paying others to do tasks they used to do at home, like cooking, laundry, landscaping, and child care. These trends have gradually changed the United States to a service economy—one devoted to the production of services that make life easier for busy consumers.
In Norway, most citizens are able to afford basic necessities and some degree of comfort. This means Norway has a(n)
Answer: high standard of living.

-The United States, Germany, Australia, and Norway all have a high standard of living, meaning that most of their citizens are able to afford basic necessities and some degree of comfort.
In the history of the American economy, the period following the Industrial Revolution was known for an increasing emphasis on
Answer: Manufacturing

-The Industrial Revolution brought factories and therefore the American economy gradually became a manufacturing economy.
Computers 'R Us, a well-known corporation, makes headlines after its employees are arrested for intentionally selling defective computer parts and accessories to their customers. Scandals like this
Answer:undermine public confidence in corporations.

-When scandals occur in well-known corporations, it undermines public confidence in corporations and sparks a new debate about ethics in business. Misconduct by individuals in a firm has an adverse effect on current and retired employees, investors, and others associated with the firm.
Which of the following is true of the role of ethics and social responsibility in business?
Answer: Ethical conduct and corporate social responsibility are linked to increased profits.

-Research has shown that ethical behavior can not only enhance a company's reputation but can also drive profits.
Other sets by this creator