76 free test bank for business a changing world 8th

43 Free Test Bank for Business A Changing World 8th Edition by Ferrell Multiple Choice Questions 25 Free Test Bank for Business A Changing World 8th Edition by Ferrell True – False Quest

43 Free Test Bank for Business A Changing World 8th Edition by Ferrell Multiple Choice Questions

25 Free Test Bank for Business A Changing World 8th Edition by Ferrell True – False Questions

8 Free Test Bank for Business A Changing World 8th Edition by Ferrell Free Text Questions

All of the following are associated with the Industrial Revolution except

1 A cotton gins.

2 B railroads.

3 C farm equipment.

4 D computers.

5 E assembly lines.

The function concerned with obtaining and managing money and using it effectively is called

1 A management.

2 B marketing.

3 C finance.

4 D production and operations.

5 E personnel.

The functions of organizing, staffing, planning, and controlling are most closely associated with

1 A employees.

2 B customers.

3 C managers.

4 D stockholders.

5 E accountants.

is often called the father of capitalism

1 A Karl Marx

2 B George Washington

3 C Benjamin Franklin

4 D Alan Greenspan

5 E Adam Smith.

The American economic system is best described as _ because the government regulates business to preserve

competition and protect consumers and employees

1 A socialism

2 B laissez-faire capitalism

3 C modified capitalism

4 D communism

5 E business ownership

All the following are factors of production used to make goods and services except

1 A natural resources.

2 B human resources.

3 C customers.

4 D capital.

5 E financial resources.

Trends have gradually changed the U.S to a(n) _ economy focused on making life easier for busy consumers

1 A manufacturing

2 B service

3 C agriculture

4 D technology

5 E marketing

Agricultural commodities are usually sold under which competitive environment?

1 A Monopoly

2 B Monopolistic competition

3 C Pure competition

4 D Oligopoly

5 E Modified competition

In a socialist system, citizens are dependent on _ for many goods and services

1 A the government

2 B the people

3 C businesses

4 D supply and demand

5 E suppliers.

Shelly's business was successful for all of the following reasons except

1 A quality product.

2 B appropriate incentives for employees.

3 C productive employees.

4 D employees who enjoyed being part of a new business.

5 E she had no competitors.

When Apple introduced the iPad the price of and demand for netbooks and notebooks were high As a result,

1 A other suppliers introduced competing products to take advantage of the demand.

2 B consumers stopped buying netpads.

3 C manufacturers stopped producing netpads.

4 D competition was not allowed to enter the market.

5 E the equilibrium price met supply.

When a business fails or does not make a profit, _ have the most to lose

1 A customers

2 B workers

3 C managers

4 D owners

5 E consumers

The group of people to whom the management activity most

applies is

1 A consumers.

2 B owners.

3 C bankers.

4 D government regulators.

5 E employees.

In the history of the American economy, the period or stage

following the Industrial Revolution was known for its emphasis on

1 A service.

2 B technology.

3 C manufacturing.

4 D agriculture.

5 E information.

In a socialist economic system, many people work in _ jobs

1 A self-employed

2 B government

3 C high-paying

4 D poverty-wage

5 E part-time

Economic contraction occurs when

1 A spending increases.

2 B spending declines.

3 C jobs increase.

4 D inflation decreases.

All of the following are associated with the manufacturing

economy except

1 A buying on credit.

2 B marketing.

3 C advertising.

4 D cable television.

5 E marketing research.

The _ is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time

1 A supply price

2 B equilibrium price

3 C demand price

4 D demand curve

5 E exact price

Factors of production are

1 A resources used to produce goods and services.

2 B fixed resources.

3 C taxes.

4 D seldom in demand.

5 E free.

What is the primary lesson to be learned from the economic scandals of the early 21st century?

1 A Businesses' reputations depend on more than profits

2 B Ethical conduct and corporate social responsibility are very important

3 C Most businesses can focus on their bottoms lines, to the exclusion of other factors

4 D A and B, but not C

5 E B and C, but not A

When Target has a sale on bed linens,

1 A consumers will not demand more than normal.

2 B the store will not supply more linens than it normally does.

3 C consumers will demand more linens.

4 D the manufacturer will halt production.

5 E consumers will demand less linens than normal.

Economic expansion occurs when

1 A fewer goods and services are produced than consumers demand.

2 B an economy is growing and people are spending more money.

3 C a nation's standard of living drops quickly.

4 D employment levels decline over time.

5 E prices begin to rise and incomes begin to fall.

resources are also known as labor

1 A Economic

2 B Human

3 C Productive

4 D Financial

5 E Natural

Financial resources are also known as _

1 A capital

2 B labor

3 C barter

4 D economics

5 E exchange

relates to the number of goods and services that consumers are willing to buy at different prices at a specific time

1 A Supply

2 B Demand

3 C Elasticity

4 D Equilibrium

5 E Economics

Increased unemployment can reduce consumer demand for

goods and services, leading to

1 A economic contraction.

2 B inflation.

3 C deflation.

4 D a budget deficit.

The early economy of the United States was marked by colonists who operated a society based primarily on

1 A manufacturing.

2 B technology.

3 C sweat shops.

4 D information.

5 E agriculture.

can be harmful if individuals' incomes do not increase at the same pace as rising prices because it reduces their buying power

1 A Deflation

2 B Stagflation

3 C Inflation

4 D Economic expansion

5 E Economic contraction

Which of the following functions involves activities designed to provide goods and services that fulfill needs and desires of

consumers?

1 A Accounting

2 B Engineering

3 C Finance

4 D Production

5 E Marketing

A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n)

1 A stagnant income.

2 B budget deficit.

3 C economic expansion.

4 D balance of trade.

5 E economic contraction.

have the most to lose if the business fails to make a profit

1 A Employees

2 B Owners

3 C Banks

4 D Customers

5 E Accountants

In a capitalist system, individuals own and operate

businesses

1 A no

2 B few

3 C about half

4 D many

5 E the majority of

Countries measure the state of their economies to

1 A determine whether they are expanding or contracting.

2 B regulate wages and employment.

3 C let other nations know the state of their economic health.

4 D avoid taking corrective action.

5 E control government spending.

A continuing rise in prices over a period of time refers to

1 A inflation.

2 B economic expansion.

3 C a recession.

4 D economic contraction.

5 E stagflation.

The entrepreneur has been primarily associated with willingness

to

1 A stay conventional.

2 B follow others.

3 C take risks.

4 D be repetitive.

5 E be conservative.

When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably

1 A pure competition.

2 B monopolistic competition.

3 C oligopoly.

4 D monopoly.

5 E pure capitalism.

Advertising, personal selling, coupons, and sweepstakes are forms of _

1 A publicity

2 B promotion

3 C marketing research

4 D management activities

5 E the marketing mix

_ is the study of how resources are

distributed for the production of goods and services within a social system

1 A Financial resources

2 B Human resources

3 C Economic system

4 D Communism

5 E Economics

After demand began to accelerate beyond supply, Mrs Acres Homemade Pies was faced with a series of options Which of the following is NOT one of those options?

1 A Maintain current production levels and raise prices

2 B Expand the facility and staff while maintain price

3 C Contract the production of pies to a national restaurant chain

4 D Maintain current levels of product and reduce the price

5 E Increase production and maintain the price

The United States is now considered a service-oriented economy, with the service industry accounting for an estimated _

percent of the total U.S economy

1 A 40

2 B 50

3 C 70

4 D 80

_ exists when there are many small businesses

selling one standardized product

1 A Monopolistic competition

2 B Oligopoly

3 C Pure competition

4 D Monopoly

5 E Market structure

Using the supply and demand curves shown in the graph that follows, what is the equilibrium price for soft drinks?

1 A 35 cents

2 B 45 cents

3 C 50 cents

4 D 55 cents

5 E 75 cents

Equal distribution of income and social services is also referred to as:

1 A communism.

2 B egalitarianism.

3 C capitalism.

4 D equality.

5 E democracy.

25 Free Test Bank for Business A Changing World 8th Edition by Ferrell True - False Questions

Economic expansion occurs when an economy is growing and people are spending more money

1 True

2 False

A product's equilibrium price is constantly changing in response to changes in economic conditions, availability of resources, and degree of competition

1 True

2 False

After World War II, the United States became an agricultural

economy

1 True

2 False

Capitalism is an economic system in which the government owns and operates basic industries while individuals own most other businesses

1 True

2 False

The primary goal of business activities is profit

1 True

2 False

A severe recession may turn into a depression

1 True

2 False

Profit is what it costs to make and sell a product

1 True

2 False

Monopolistic competition exists when there is only one producer

of a product in a given market

1 True

2 False

Entrepreneurs risk their wealth, time, and effort to develop for profit an innovative product or way of doing something

1 True

2 False

An oligopoly exists when there are many small businesses selling one standardized product

1 True

2 False

When a nation takes more from taxes than it spends, it has a budget deficit

1 True

2 False

The equilibrium price is represented by the point where a

product's supply and demand curves intersect

1 True

2 False

Nonprofit organizations such as Habitat for Humanity do not engage in management, marketing, or finance activities

1 True

2 False

A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with limited resources

1 True

2 False

Most socialist nations are democratic

1 True

2 False

Free-market capitalism and laissez-faire capitalism are essentially the same thing

1 True

2 False

Businesses have the right to keep and use their profits as they choose, without limitations

1 True

2 False

Demand is the quantity of goods and services that consumers are willing to buy at different prices at a specific time

1 True

2 False

Advertising first made consumers aware of differences in products and prices in the marketing economy

1 True

2 False

Products have tangible attributes only

1 True

2 False

The standard of living rises because people have less money to spend

1 True

2 False

Gross domestic product is the sum of all goods and services produced in a country during a year

1 True

2 False

The Industrial Revolution brought increasing prosperity and

propelled the United States into a manufacturing economy

1 True

2 False

In a free-market system, the government regulates business

1 True

2 False

Thomas Edison was an American entrepreneur

1 True

2 False

8 Free Test Bank for Business A Changing World 8th Edition by Ferrell Free Text Questions

What challenges does Shelly face as she considers the three options?

Answer Given

The first option implies that Shelly's company is not going to grow since its current size will be maintained by keeping an artificially high price The second solution

requires Shelly to find the resources to finance the expansion of her activities The third option leads Shelly to lose her specific know-how by providing it to the

national restaurant chain It also implies that Shelly does not own her business any longer.

Define competition, and describe the different forms it can take on

Answer Given

Competition is the rivalry among businesses for consumers' dollars, is another vital element in free enterprise Pure competition exists when there are many small businesses selling one standardized product, such as agricultural

commodities like wheat, corn, and cotton Monopolistic competition exists when there are fewer businesses than in a pure-competition environment and the

differences among the goods they sell is small 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.

What is an economic contraction, and what can it lead to?

Answer Given

Economic contraction occurs when spending declines Businesses cut back on production and lay off workers, and the economy as a whole slows down

Contractions of the economy lead to recession—a decline in production,

employment, and income Recessions are often characterized by rising levels of unemployment, which is measured as the percentage of the population that wants

to work but is unable to find jobs.

Explain and demonstrate the relationship between supply and demand for Mrs Acres Homemade Pies

Answer Given

When Shelly Acres started selling her pies, she had to find her own customers None of the local restaurants and supermarkets knew her products, so she had to offer an affordable product to interest restaurants and supermarkets in her

products As demand increased, Shelly started producing more pies to meet this demand At the moment, she cannot supply all the demand A way to decrease

this demand is to increase prices She can also increase the production level to meet the demand.

Define supply, demand, and equilibrium price, and explain their relationship with each other

Answer Given

Supply is the quantity of goods or services that businesses are willing to sell at different prices at a specific time Demand is the quantity of goods or services that consumers are willing to buy at different prices at a specific time Both can be shown graphically with supply and demand curves Where the supply and demand curves intersect is the equilibrium price, the price at which the quantity of products businesses are willing to supply equals the quantity of products consumers are willing to buy at a specific point in time If economic conditions, resource

availability, degree of competition, or some other factor changes either supply or demand, a new equilibrium price will be established.

Discuss the issues involved in measuring a country's economy

Answer Given

Countries measure the state of their economies to determine whether they are expanding or contracting and whether corrective action is necessary to minimize fluctuations One commonly used measure is gross domestic product (GDP), the sum of all goods and services produced in a country during a year Another

important indicator of a nation's economic health is the relationship between its spending and income (from taxes).

What would you do in Shelly's position?

Answer Given

Answers will vary, but students should be able to defend the choices they have made.

What are the three questions that all economic systems must answer? Who answers them under a communist system? A

socialist system? A capitalist system?

Answer Given