- 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 orders online.
The various resources used to create a company’s goods and services are collectively referred to as ________.
- factors of production
- intellectual property
- raw materials
Which of the following is an example of real capital?
- natural gas
- personal savings
- computer software
- a business loan
- a 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.
BUS 100 Exam
01 : 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 conscious
- mail out paper fliers advertising her business
- raise prices to include the cost of a donation to a green nonprofit organization
- install solar panels on her store’s roof to provide electricity
- sell 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 marketing
- a talented workforce
- technological advances
- “green” policies
- government 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 ________ e-commerce.
- consumer 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 business
- a specialty business
- a regional business
- a state business
- a local business
A(n) ________ is the process by which products, information, and money move between supplier and consumer.
- supply chain
- product flow
- delivery system
- funneling mechanism
- operational 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 economy
- market economy
- mixed economy
- traditional economy
- planned economy
Which transaction best describes bartering?
- an exchange of goods for currency, in which the price of something is determined by establishing its value against an underlying commodity
- a 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 time
- an 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 exchange
- an exchange of goods for currency, in which the price of something is determined by what buyers are willing to pay
- an 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 50¢. 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 supplied
- that as supply decreases, demand decreases
- the effects of price on quantity demanded
- that as supply increases, the price stays the same
- the 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 producers
- amount of the surplus to be anticipated
- quality of the good or service being purchased
- market price of the good
- the number of substitute goods available
What best determines the level of competition?
- the number of complementary products or service
- the number of substitutes for a certain good or service
- the degree of change in income levels
- the degree of population change
- the 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 competition
- A monopoly
- A duopoly
- An oligopoly
- Perfect competition
The gross domestic product (GDP) measures ________.
- the overall gross profit a country earns in a given year
- a country’s overall increase in profitability from one year to the next
- the overall market value of final goods and services produced in a country in a given year
- a country’s overall income resulting from production in a year
- a country’s overall expenditures in a given year
What does the monthly consumer price index (CPI) measure?
- the number of new products purchased by consumers
- the changes in prices of the resources used to create consumer goods
- the changes in prices of goods and services as determined by the sellers
- the amount of products and services manufactured domestically
- the changes in prices of goods and services purchased by households
________ 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 policy
- fiscal policy
- currency policy
- foreign policy
- monetary policy
The government manages the supply of money through its ________.
- monetary policy
- fiscal policy
- domestic policy
- stimulus policy
- foreign 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 s