Question 1

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

Accepted Answer

A) True 
 B)False

Question 2

When General Mills and a few other firms dominate the cereal market, this is an example of

Accepted Answer

A)   pure competition.
B)   monopolistic competition.
C)   oligopoly.
D)   natural monopoly.
E)   monopoly.F) None of the above
G) B) and E)

Question 3

Which of the following situations is most likely to increase a nation's productivity?

Accepted Answer

A)   Increased number of people in the workforce
B)   Decreased production of goods
C)   Increase in economic activity being transferred to the Internet
D)   More corporations being split up into smaller divisions
E)   More unemployment benefitsF) A) and B)
G) A) and C)

Question 4

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

Accepted Answer

A) True 
 B)False

Question 5

The total currency value of all goods and services produced by all people within the boundaries of a country is called

Accepted Answer

A)   productivity.
B)   gross domestic product.
C)   gross national product.
D)   inflation factor.
E)   standard of living.F) None of the above
G) A) and C)

Question 6

Deflation is a general decrease in the level of prices.

Accepted Answer

A) True 
 B)False

Question 7

All of the following would typically be considered consumer products except a

Accepted Answer

A)   2-litee of Coke.
B)   DVD player.
C)   prom dress.
D)   high-powered drill press.
E)   bag of dog food.F) C) and E)
G) A) and E)

Question 8

Gross domestic product is a loose, subjective measure of how well a society can satisfy its people through goods and services.

Accepted Answer

A) True 
 B)False

Question 9

Profit is the payment business owners receive for assuming the risks of ownership.

Accepted Answer

A) True 
 B)False

Question 10

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business.Is Gail correct?

Accepted Answer

A)   Yes, by putting this money into a savings account, only she has access to the funds and they are no longer available to the circular flow.
B)   No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
C)   Yes, only direct investments into companies, such as purchasing ownership shares of that company, will put her savings back into the circular flow.
D)   Yes, the circular flow focuses on businesses and government, and therefore Gail's savings have no impact on the circular flow.
E)   No, because she earned this money from a company and because she paid taxes on it, it is always considered part of the flow.F) A) and D)
G) A) and C)

Question 11

The purpose of specialisation is to

Accepted Answer

A)   reduce productivity.
B)   increase the efficiency of industrial workers.
C)   boost the morale of an employee because he or she is special.
D)   relieve boredom.
E)   make the nature of the work more general.F) A) and B)
G) A) and C)

Question 12

The producer price index is an accurate predictor of

Accepted Answer

A)   future changes in the consumer price index.
B)   the level of unemployment.
C)   prime interest rates.
D)   Internet business activity.
E)   an individual's standard of living.F) B) and E)
G) A) and D)

Question 13

Which of the following is most aligned with the Occupy Wall Street protests?

Accepted Answer

A)   Reducing inequality of income and wealth
B)   Reducing the number of home foreclosures
C)   Fortifying Wall Street firms
D)   Increasing the national debt
E)   Increasing the rate and depth of federal stimulus plansF) A) and B)
G) C) and D)

Exam 1: Introduction to Business

The purpose of specialisation is to

Correct Answer
verified

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

Correct Answer
verified

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business.Is Gail correct?

Correct Answer
verified

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

Correct Answer
verified

Which of the following situations is most likely to increase a nation's productivity?

Correct Answer
verified

All of the following would typically be considered consumer products except a

Correct Answer
verified

The total currency value of all goods and services produced by all people within the boundaries of a country is called

Correct Answer
verified

When General Mills and a few other firms dominate the cereal market, this is an example of

Correct Answer
verified

Profit is the payment business owners receive for assuming the risks of ownership.

Correct Answer
verified

Deflation is a general decrease in the level of prices.

Correct Answer
verified

The producer price index is an accurate predictor of

Correct Answer
verified

Which of the following is most aligned with the Occupy Wall Street protests?

Correct Answer
verified

Gross domestic product is a loose, subjective measure of how well a society can satisfy its people through goods and services.

Correct Answer
verified

Exam 1: Introduction to Business

The purpose of specialisation is to

Correct AnswerverifiedShow Answer

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

Correct AnswerverifiedShow Answer

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account.She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business.Is Gail correct?

Correct AnswerverifiedShow Answer

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

Correct AnswerverifiedShow Answer

Which of the following situations is most likely to increase a nation's productivity?

Correct AnswerverifiedShow Answer

All of the following would typically be considered consumer products except a

Correct AnswerverifiedShow Answer

The total currency value of all goods and services produced by all people within the boundaries of a country is called

Correct AnswerverifiedShow Answer

When General Mills and a few other firms dominate the cereal market, this is an example of

Correct AnswerverifiedShow Answer

Profit is the payment business owners receive for assuming the risks of ownership.

Correct AnswerverifiedShow Answer

Deflation is a general decrease in the level of prices.

Correct AnswerverifiedShow Answer

The producer price index is an accurate predictor of

Correct AnswerverifiedShow Answer

Which of the following is most aligned with the Occupy Wall Street protests?

Correct AnswerverifiedShow Answer

Gross domestic product is a loose, subjective measure of how well a society can satisfy its people through goods and services.

Correct AnswerverifiedShow Answer

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