Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barbara's, are able to expand as they earn more profits.
True
Which of the following would MOST likely be part of a company's diversity initiative?
a minority network
Which of the following refers to an interconnected system of different demographic factors?
social environment
A(n) ________ is the process by which products, information, and money move between supplier and consumer.
supply chain
Which of the following events would MOST likely change the racial demographic of a population?
an influx of immigrants
Keeping up with new technology is ________.
important for individuals as well as businesses
The various resources used to create a company's goods and services are collectively referred to as ________.
factors of production
The economy of the United States is BEST described as ________.
market-based
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?
Develop a website that would enable customers to shop and place orders online.
Chris orders a salad at a restaurant. What is the BEST definition of what he is buying?
Chris is buying both a good and a service.
Which of the following poses the MOST COMMON financial threat to local and regional businesses?
undercapitalization
When businesses compete, products usually become more expensive.
False
Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician's repairs?
a service
A CVS/pharmacy store is an example of a ________ business.
national
Robert wants to upgrade his real estate company's computer systems. Which of the following factors of production would Robert find LEAST useful for his project?
real capital
Which of the following problems is potentially posed by an aging population?
higher taxes
Which of the following would MOST likely happen to companies that are less efficient than their competitors?
They would close down.
Real capital refers to the money used to facilitate a business enterprise.
False
Car insurance is an example of a good.
False
Emma bought an MP3 player and a portable DVD player. These products are called goods because ________.
they are physical or tangible products
Tom is a college senior who would like to get a "green-collar" job when he graduates. Which of the following positions is he LEAST likely to apply for?
a job as manager at an oil refinery
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.
business-to-business
________ is the movement toward a more interconnected and interdependent world economy.
Globalization
In a business environment, the term "minority" applies to more than just people of different ethnicities. Minority groups represent all of the following EXCEPT ________.
a person's political party
The private enterprise system assumes that competition benefits consumers.
True
Which of the following BEST enables all companies, regardless of size, to compete in the global market?
technological advances
To be successful, a company should keep pace with the latest technology.
True
Humberto is a supply chain manager for a multinational company. Which of the following challenges should he be LEAST concerned about?
His home branch is missing certain office supplies.
Jarvis runs a restaurant that has had a lot of complaints from customers lately. Jarvis is a strict manager and prefers to make all the decisions himself. A concerned friend recommends that Jarvis delegate more decision-making responsibility to his employ
Customer satisfaction will improve because employees can be more responsive to customer needs.
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?
install solar panels on her store's roof to provide electricity
Which of the following is NOT an advantage of technology?
fosters a more personal work environment
Which of the following factors do multinational companies MOST often look for in a country when they are considering a location for offshore manufacturing?
low production costs
Patricia 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?
Reduce the price of the model that is not selling well.
The physical products that a business offers are called ________.
goods
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 regional business
Teresa and Luis are getting married next month. Which of the following elements of their wedding does NOT require a natural resource for its production?
the wedding vows
Business managers do not need to be aware of the decisions of collective businesses outside their own industry.
False
The ________ and the Department of Justice must review mergers between large competitors to determine whether the combined firm would be a monopolistic corporation.
Federal Trade Commission
The producer price index tracks the average change in prices from the ________ perspective.
seller's
A planned economy is one in which ________.
the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group
A demand curve illustrates ________.
the effects of price on quantity demanded
Prices become higher when a unique and highly desirable item is auctioned ________.
because the demand is higher than the supply
In which part of the business cycle would the Federal Reserve be most likely to increase the discount rate to discourage banks from borrowing?
expansion
________ unemployment refers to a temporary state of unemployment in which workers move between jobs, careers, and locations.
Frictional
The government manages the supply of money through its ________.
monetary policy
When the Federal Reserve Bank buys or sells U.S. securities, it changes the level of reserves in the banking system which has an effect on interest rates.
True
The government determines the appropriate level of taxes and spending through its ________.
fiscal policy
The government can influence the economy through its fiscal policy by making changes in the money supply.
False
According to the law of supply, the amount of a good or service supplied will increase as the price increases, and decrease as the price decreases. This direct relationship exists because ________.
supply is derived from a producer's desire to maximize profit
A mixed economy is one in which ________.
both individuals and government control resources and determine production methods
One example of complementary goods is ________.
a cell phone and wireless phone service
The consumer price index (CPI) tracks changes in prices at the wholesale level.
False
Macroeconomics is the study of how certain occurrences affect the economy as a whole.
True
What does the monthly consumer price index (CPI) measure?
the changes in prices of goods and services purchased by households
The reserve requirement is defined as ________.
the minimum amount of money banks hold in reserve to cover deposits
________ unemployment measures permanent unemployment associated with massive industry-wide changes that lead to complete elimination of the positions formerly held.
Structural
A rise in the general level of prices over time is called ________.
inflation
________ occurs when there are many buyers and sellers and little differentiation between products, but perceived differences between products among consumers.
Monopolistic competition
________ occurs when there are a few sellers in a given market and each seller has a fairly large share of that market.
An oligopoly
a popular United States-based brand of handbags, has built a second factory in Mexico. The majority of the new factory's employees are Mexican citizens or Honduran immigrants. On which country's gross domestic product will the second factory's goods be co
Mexico
Although the United States comes close to being a capitalist economy, it is considered a mixed economy because there is some government intervention.
True
All of the following statements about open market operations are true EXCEPT ________.
they are used by the Federal Reserve to change the discount rate
Mae's Restaurant is the only establishment in town that sells cinnamon rolls. Mae therefore has a monopoly on the cinnamon roll business in town.
True
A recession is an increase in the unemployment rate over two or more consecutive quarters of a year.
False
________ occurs when there is only one provider of a service or product and no substitutes for the service or product exist.
A monopoly
Mae bakes 100 cinnamon rolls each day to sell at her caf�, and each day she sells out before breakfast is over. Many of her customers ask for, but don't get one. Her customers ask that she bake more cinnamon rolls each day. This is an example of a shortag
True
Cyclical unemployment measures those out of work during the off-season, such as those employed in agriculture and snow-, beach-, or holiday-related industries.
False
A downward-moving GDP indicates that ________.
fewer goods and services are being produced and sold
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 ________.
market price of the good
Which of the following statements is NOT true of a market economy?
The government may supply some goods or services.
In what way does monopolistic competition favor consumers?
A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices.
The Federal Reserve System (the Fed) manages the country's money supply through its monetary policy to control inflation by doing all of the following EXCEPT ________.
increasing taxes