100 ExamChris orders a salad at a
restaurant. What is the BEST definition of what he is buying?
Chris is buying neither a good nor a service.Chris is buying a service.Chris is buying a good.Chris is buying a service, but not a good.Chris is buying both a good and a service.
Nina’s furniture store has had a
successful year and made a significant profit. Which of the following actions
using Nina’s store profits would BEST increase productivity?
Create an emergency fund.Hire more staff.Service her community through social and educational
means.Pay for utilities and inventory in advance.Develop a website that would enable customers to place
The various resources used to create
a company’s goods and services are collectively referred to as ________.
suppliesfactors of productionintellectual propertyraw materialsinventory
Which of the following is an example
of real capital?
natural gaspersonal savingscomputer softwarea business loana manufacturing plant
The economy of the United States is
Leroy owns a small hardware store
that is known for its high level of customer service. A large chain home
improvement store has just opened up in his community. Which of the following
would BEST help Leroy deal with his new competitor?
Move his store in order to be farther away from the
large store.Raise their prices, to show that their customer service
is worth paying a premium for.Pay his employees “under the table” to avoid
costly payroll taxes and keep prices lower.Advertise aggressively to increase consumer awareness
of his reputation for service.Close the business, since small stores cannot compete
effectively with chain stores.
atricia owns a small electronics
store in a rural area. She carries two different brands of weather radios that
are equally priced. One model is selling well, but the other does not seem to
be attracting customers. What should Patricia do?
Try to discourage customers from buying the model that
is selling well.Donate the poorly selling radios to local schools.Reduce the price of the model that is not selling well.Stop advertising the radio that is not selling well.See if a rival electronics store will purchase the
poorly selling radios.
: 04 : 03
Addison wants her new t-shirt store to be environmentally friendly. With
the concept of the green economy in mind, which of the following business
initiatives would BEST make her business greener?
giving a discount to customers who claim to be
environmentally consciousmail out paper fliers advertising her businessraise prices to include the cost of a donation to a
green nonprofit organizationinstall solar panels on her store’s roof to provide
electricitysell t-shirts with environmental slogans
________ refers to a company’s
choice to relocate its production facilities overseas or subcontract at least
some of the components to foreign companies at low costs.
Which of the following BEST enables
all companies, regardless of size, to compete in the global market?
effective marketinga talented workforcetechnological advances”green” policiesgovernment subsidies
Bill is an information technology
manager for a large firm. His company needs to install a new software program,
which he orders from his company’s online supplier. This is an example of
business-to-businessbusiness-to-customerbusiness-to-supplierconsumer to consumerbusiness-to-consumer
The WAWA chain of convenience stores
has over 500 locations in five states in the mid-Atlantic region of the United
States. WAWA is an example of ________.
a national businessa specialty businessa regional businessa state businessa local business
A(n) ________ is the process by
which products, information, and money move between supplier and consumer.
supply chainproduct flowdelivery systemfunneling mechanismoperational flow
Celeste is interested in studying
the effects that natural disasters have on the value of goods and services in
the affected areas. Her area of study should be ________.
ohn is an employee at a car
manufacturer. Today he has come into work to find that production has stopped
because the government has determined that the steel used in the cars will be
better used in the manufacture of a new railway line. John doesn’t mind,
because although his wages are low, he gets paid whether there is any work for
him to do or not. John MOST likely lives in a ________.
capitalist economymarket economymixed economytraditional economyplanned economy
Which transaction best describes
an exchange of goods for currency, in which the price
of something is determined by establishing its value against an underlying
commoditya transfer of goods without an exchange of currency, in
which the price of something is determined by the seller, and the buyer
agrees to pay at a later timean exchange of goods without an exchange of currency,
in which the price of something is determined by the needs and resources
of each person involved in the exchangean exchange of goods for currency, in which the price
of something is determined by what buyers are willing to payan exchange of currency without an exchange of goods,
in which the price of something is determined by what sellers demand
Mae’s Country Kitchen sells out of
her cinnamon rolls every morning before 8:30 a.m., and her later customers ask
her to make more. The next day, Mae makes an additional two dozen cinnamon
rolls and raises the price of an individual cinnamon roll by 50Â¢. She sells all
but one of them. Mae has found the ________ price of her cinnamon rolls.
A supply curve illustrates ________.
the effects of price on quantity suppliedthat as supply decreases, demand decreasesthe effects of price on quantity demandedthat as supply increases, the price stays the samethe effects of changes in resource prices on supply
When the supply curve and the demand
curve for a single product or service are shown on the same graph, the point at
which the curves intersect identifies the ________.
total profit earned by the producersamount of the surplus to be anticipatedquality of the good or service being purchasedmarket price of the goodthe number of substitute goods available
What best determines the level of
the number of complementary products or servicethe number of substitutes for a certain good or servicethe degree of change in income levelsthe degree of population changethe existence of complementary goods
_______ occurs when there are many
buyers and sellers of products that are virtually identical and any seller can
easily enter and exit the market.
Monopolistic competitionA monopolyA duopolyAn oligopolyPerfect competition
The gross domestic product (GDP)
the overall gross profit a country earns in a given
yeara country’s overall increase in profitability from one
year to the nextthe overall market value of final goods and services
produced in a country in a given yeara country’s overall income resulting from production in
a yeara country’s overall expenditures in a given year
What does the monthly consumer price
index (CPI) measure?
the number of new products purchased by consumersthe changes in prices of the resources used to create
consumer goodsthe changes in prices of goods and services as
determined by the sellersthe amount of products and services manufactured
domesticallythe changes in prices of goods and services purchased
________ unemployment measures
permanent unemployment associated with massive industry-wide changes that lead
to complete elimination of the positions formerly held.
The government determines the
appropriate level of taxes and spending through its ________.
domestic policyfiscal policycurrency policyforeign policymonetary policy
The government manages the supply of
money through its ________.
monetary policyfiscal policydomestic policystimulus policyforeign policy
Cindy is a popular actress and has
won countless acting awards in her 15 years in the industry. People always ask
her what her secret is, and Cindy tells them, “Hard work always pays
off!” She adds that each time she acts she’s giving her all. Cindy’s
belief is most likely in line with her ________.
political ethicspersonal ethicsreligious ethicssocial ethicssituational ethics
“Nice guys finish last.”
and “Hard work always pays off” are examples of ________.
Which of the following ethical
issues should be of the LEAST concern to a business?
A customer has failed to report all of her income to
the IRS.An employee who operates equipment drinks several beers
while offsite eating lunch.An employee spends time shopping online and on Facebook
when he should be working.An employee uses recreational drugs on the weekends.A manager is having a romantic relationship with one of
his team members.
In business relations all of the
following are influenced by our personal ethics EXCEPT ________.
Which of the following would LEAST likely
be a source of a company’s values and principles?
the owner’s behaviors and prioritiesthe company’s marketing campaignthe company’s record of legal compliancethe company’s mission statementthe company’s code of ethics
Victor is using the Internet to
research past charges that have been filed against the pharmaceutical company
Pharmacure. Victor is primarily trying to find out about Pharmacure’s ________.
mission statementrecord of legal compliancecode of ethicscorporate culturecorporate vision
Which of the following is NOT an
example of how corporate social responsibility can be consistent with
paying employees in a developing nation more than the
minimumoffering bonuses to employees who embellish profit and
loss statementsimproving environmental practices in their factories
and plantsusing recycled styrofoam as cups in a coffee shopencouraging employees to volunteer within the local
Since goods are more widely
manufactured and sold in the global marketplace, this has caused U.S. companies
close down offshore manufacturing facilities because of
different ethical standardsface difficult decisions about ethical standards on tough
issues such as child labor, pollution, fair wages, and human rightsignore ethical standards in their U.S. facilities to
make them more competitivehave more control over ethical standards in other
countries since governments are eager to meet the expectations of
companies that wish to operate within their bordersrespect and care for their employees in the U.S. with
higher ethical standards
When the banana supplier Chiquita
begins to improve conditions for its workers by constructing schools for employees’
families, this is an example of which of the pillars of corporate social
marketing and consumer issuesethical sourcing and procurementenvironmental, health, and safety concernshuman rights and employment standards in the workplaceethics training program
What is a company’s unique
responsibility to its stockholders?
to be a good corporate neighborto create a stable balance sheet between income and
expensesto provide jobs to workersto make a profitto produce products that the public will find useful
A toy company regularly donates some
of its profits to charitable organizations. This company is exercising
public ratings and rankingssocially responsible investingself-reportingsocial auditscorporate philanthropy
Jeremy is a telemarketer who is
hearing impaired. His hearing aid helps him take calls at work and this
compensates for his disability. He accidentally broke his hearing aid and did
not have the money to replace it. He asked for an advance on salary and was
refused. He asked for a loan and was refused. As a result, Jeremy was unable to
take calls from customers and he was fired from his job because of “poor
performance.” Which government agency shall he call to help Jeremy in this
the Equal Employment Opportunity Commissionthe Securities and Exchange Commissionthe United States Congressthe Department of Health and Human Servicesthe United States Department of Agriculture
The Sarbanes-Oxley Act requires that
companies uphold the ADACEOs verify their companies’ financial statements and
vouch for their accuracy with the SECcompanies be held financially responsible for
environmental damage caused by their actionsall food packaging displays complete nutritional
informationinvestment bankers disclose the percentage of their
assets that are considered high risk
The link between labor costs in
China and the price of MP3 music players in the U.S. is an example of ________.
Apple’s selling iPhones to customers
in Africa, Asia, and Europe is an example of the globalization of ________.
An example of globalization of
________ is Toyota opening a factory in Kentucky.
A term that describes the movement
of production away from a domestic production site to a foreign location is
An engineering team has members from
Egypt, Malaysia, Australia, Argentina, and the U.S. They communicate by email
and videoconferencing. The work of this globalized team is made easier because
declines in trade barriersincreases in quotastechnological innovationincreases in democratizationa shrinking role for developing nations
The nation of Baa-Baa raises sheep
relatively more efficiently than the nation of Snuggle. Snuggle weaves woolen
blankets relatively more efficiently than Baa-Baa. Baa-Baa decides to
specialize in sheep raising, to sell wool to Snuggle, and to buy blankets from
Snuggle. Snuggle decides to specialize in blanket weaving, to sell blankets to
Baa-Baa, and to buy wool from Baa-Baa. This international trade illustrates
If the U.S. has the ability to
produce more steel than any other country in the world, the U.S. has a(n)
________ advantage in steel production.
According to the theory of
comparative advantage, if the U.S. and Mexico increase their trade with each
other, the two countries will experience ________ standards of living.
rapidly decreasingno change inidenticalhigherslightly lower
The country of Kappa sells pizza for
$1.00 each within its borders. But Kappa exports pizzas at a price of $0.30.
This is an example of ________.
a local content requirementan embargodumpingcheap foreign laboran administrative trade barrier
If Ecuador has a dispute with France
over the importation of bananas, from which agency can Ecuador seek
A free trade area that includes
Canada and the U.S., but not Japan, is the ________.
North American Free Trade Agreement (NAFTA)The Asia-Pacific Economic Cooperation (APEC)Association of Southeast Asian Nations (ASEAN)MERCOSUREuropean Union (EU
What is the term for the sale of a
domestically produced good in a foreign market?
turnkey projectlicensingexportingfranchisingjoint venture
An American company enters the
Mexican market by sharing ownership of a subsidiary firm with a Mexican
company. This is an example of a(n) ________.
franchisecontract manufacturing arrangementexport agreementstrategic alliancejoint venture
In order to enter the Spanish
market, a Moroccan firm establishes a store that is entirely owned by the
Moroccan firm. This is an example of a(n) ________.
joint venturestrategic alliancewholly owned subsidiarycontract manufacturing arrangementexporting agreement
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