B US 110 Final Exam (Chapter s
1-8) Questions and answ er s w ith
accur ate r ationales(PASSED)
When businesses compete, products usually become more expensive. - answer
False
The physical or tangible products that a business offers are called: - answer goods
Which of the following are factors of production? - answer labor, natural
resources, capital, entrepreneurs, technology
An increase in unemployment has no affect on a business owner. - answer False
Please describe market equilibrium either in your own words or according to the
textbook. - answer Market equilibrium is when the need and availability for an
item are in balance. This is the "perfect price" for that item.
Gross domestic product (GDP) is determined by: - answer the overall market value
of final goods and services produced in a country in a year.
Socialism differs from communism in that the government has little control of
important resources rather than control of all resources. - answer False
,An interconnected system of different demographic factors is referred to in the
book as: - answer a social environment
___________ competition exists when there is an industry where products are
identical and there are many small sellers such as a roadside vegetable stand. -
answer Perfect or pure
If you go to a restaurant, what is the best definition of what you are getting? -
answer a good and a service
Profitable businesses benefit society in all the following ways EXCEPT: - answer
providing dental care for ALL full and part-time employees
The essential function of economics is to study ___________. - answer the
exchange of goods and services between individuals, businesses and nations.
_________ occurs when there are many buyers and many sellers in an industry
with little difference between products (like athletic shoes). Companies use
differentiation to stimulate demand. - answer Monopolistic competition
Manufacturers are motivated by profit and thus are willing to produce more of a
product at a higher price. - answer True
One example of a complementary good is: - answer iPod and iTunes
Profits allow a company to: - answer invest in new technology
,What is the difference between complementary goods and substitute goods. -
answer Complementary goods are products or services that go with each other
and are consumed together, such as the iPhone and the apps associated with it,
are considered complementary goods. Meanwhile, substitute goods are goods
that can be used in place of other goods, such as Coke for Pepsi or McDonald's
Quarter Pounder for Burger King's Whopper.
Change in price is an important economic indicator because it influences
consumer's purchasing power. - answer True
A(n) ________ seeks to primarily serve the community through social or
educational means or "causes". - answer non-profit or not-for-profit organization
National businesses will always serve international markets. - answer False
A person that assumes risk and creates a business is called: - answer an
entrepreneur
One social change to be aware of is the ______________ due to the large number
of Baby Boomers in the U.S. - answer aging of the population
It is important to look at changes in GDP to determine if the economy is "healthy"
or growing. - answer True
The U.S. government can influence the economy with fiscal policies such as
increasing taxes or increasing government spending. - answer True
, A government determines the appropriate level of taxes and spending through its
___________. - answer fiscal policy
_________ occurs when there are few sellers in a given market and each seller has
a fairly large market share. The market has many buyers. - answer Oligopoly
The various resources used to create a company's goods and services are referred
to as: - answer factors of production
Car insurance is an example of a good. - answer False
Name 2 challenges multinational businesses face. - answer 1) Multinational
corporations must be familiar and comply with the laws of the countries in which
they operate. Laws concerning the import and export of goods vary greatly from
one country to another. Things can get particularly complicated if a product is
shipped to one country for assembly, another for packaging, and then yet another
country for distribution.
(2) Safety regulations and quality control, copyright, and patent laws are some of
the other laws multinational corporations must comply with when doing business
in foreign countries.
Generally in the United States we consider monopolies to be illegal. - answer True
Consumer Price Index (CPI) is an economic indicator that is used to measure the
rate of recession. - answer False
1-8) Questions and answ er s w ith
accur ate r ationales(PASSED)
When businesses compete, products usually become more expensive. - answer
False
The physical or tangible products that a business offers are called: - answer goods
Which of the following are factors of production? - answer labor, natural
resources, capital, entrepreneurs, technology
An increase in unemployment has no affect on a business owner. - answer False
Please describe market equilibrium either in your own words or according to the
textbook. - answer Market equilibrium is when the need and availability for an
item are in balance. This is the "perfect price" for that item.
Gross domestic product (GDP) is determined by: - answer the overall market value
of final goods and services produced in a country in a year.
Socialism differs from communism in that the government has little control of
important resources rather than control of all resources. - answer False
,An interconnected system of different demographic factors is referred to in the
book as: - answer a social environment
___________ competition exists when there is an industry where products are
identical and there are many small sellers such as a roadside vegetable stand. -
answer Perfect or pure
If you go to a restaurant, what is the best definition of what you are getting? -
answer a good and a service
Profitable businesses benefit society in all the following ways EXCEPT: - answer
providing dental care for ALL full and part-time employees
The essential function of economics is to study ___________. - answer the
exchange of goods and services between individuals, businesses and nations.
_________ occurs when there are many buyers and many sellers in an industry
with little difference between products (like athletic shoes). Companies use
differentiation to stimulate demand. - answer Monopolistic competition
Manufacturers are motivated by profit and thus are willing to produce more of a
product at a higher price. - answer True
One example of a complementary good is: - answer iPod and iTunes
Profits allow a company to: - answer invest in new technology
,What is the difference between complementary goods and substitute goods. -
answer Complementary goods are products or services that go with each other
and are consumed together, such as the iPhone and the apps associated with it,
are considered complementary goods. Meanwhile, substitute goods are goods
that can be used in place of other goods, such as Coke for Pepsi or McDonald's
Quarter Pounder for Burger King's Whopper.
Change in price is an important economic indicator because it influences
consumer's purchasing power. - answer True
A(n) ________ seeks to primarily serve the community through social or
educational means or "causes". - answer non-profit or not-for-profit organization
National businesses will always serve international markets. - answer False
A person that assumes risk and creates a business is called: - answer an
entrepreneur
One social change to be aware of is the ______________ due to the large number
of Baby Boomers in the U.S. - answer aging of the population
It is important to look at changes in GDP to determine if the economy is "healthy"
or growing. - answer True
The U.S. government can influence the economy with fiscal policies such as
increasing taxes or increasing government spending. - answer True
, A government determines the appropriate level of taxes and spending through its
___________. - answer fiscal policy
_________ occurs when there are few sellers in a given market and each seller has
a fairly large market share. The market has many buyers. - answer Oligopoly
The various resources used to create a company's goods and services are referred
to as: - answer factors of production
Car insurance is an example of a good. - answer False
Name 2 challenges multinational businesses face. - answer 1) Multinational
corporations must be familiar and comply with the laws of the countries in which
they operate. Laws concerning the import and export of goods vary greatly from
one country to another. Things can get particularly complicated if a product is
shipped to one country for assembly, another for packaging, and then yet another
country for distribution.
(2) Safety regulations and quality control, copyright, and patent laws are some of
the other laws multinational corporations must comply with when doing business
in foreign countries.
Generally in the United States we consider monopolies to be illegal. - answer True
Consumer Price Index (CPI) is an economic indicator that is used to measure the
rate of recession. - answer False
