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BUS 110 Final Exam (Chapters 1-8)
Questions and Answers (100% Correct
Answers) Already Graded A+
When businesses compete, products usually
become more expensive. Ans: False
The physical or tangible products that a
© 2025 Assignment
business offers are called: Ans: goods
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Which of the following are factors of
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production? Ans: labor, natural resources,
capital, entrepreneurs, technology
An increase in unemployment has no affect on a
business owner. Ans: False
Please describe market equilibrium either in
your own words or according to the textbook.
Ans: 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:
Ans: the overall market value of final goods and
services produced in a country in a year.
, 2
Socialism differs from communism in that the
government has little control of important
resources rather than control of all resources.
Ans: False
An interconnected system of different
demographic factors is referred to in the book
as: Ans: a social environment
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___________ competition exists when there is an
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industry where products are identical and there
are many small sellers such as a roadside
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vegetable stand. Ans: Perfect or pure
If you go to a restaurant, what is the best
definition of what you are getting? Ans: a good
and a service
Profitable businesses benefit society in all the
following ways EXCEPT: Ans: providing dental
care for ALL full and part-time employees
The essential function of economics is to study
___________. Ans: 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
, 3
difference between products (like athletic
shoes). Companies use differentiation to
stimulate demand. Ans: Monopolistic
competition
Manufacturers are motivated by profit and thus
are willing to produce more of a product at a
higher price. Ans: True
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One example of a complementary good is: Ans:
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iPod and iTunes
Expert
Profits allow a company to: Ans: invest in new
technology
What is the difference between complementary
goods and substitute goods. Ans:
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.
, 4
Change in price is an important economic
indicator because it influences consumer's
purchasing power. Ans: True
A(n) ________ seeks to primarily serve the
community through social or educational means
or "causes". Ans: non-profit or not-for-profit
organization
© 2025 Assignment
National businesses will always serve
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international markets. Ans: False
Expert
A person that assumes risk and creates a
business is called: Ans: an entrepreneur
One social change to be aware of is the
______________ due to the large number of Baby
Boomers in the U.S. Ans: aging of the population
It is important to look at changes in GDP to
determine if the economy is "healthy" or
growing. Ans: True
The U.S. government can influence the economy
with fiscal policies such as increasing taxes or
increasing government spending. Ans: True
BUS 110 Final Exam (Chapters 1-8)
Questions and Answers (100% Correct
Answers) Already Graded A+
When businesses compete, products usually
become more expensive. Ans: False
The physical or tangible products that a
© 2025 Assignment
business offers are called: Ans: goods
Guru01 - Stuvia
Which of the following are factors of
Expert
production? Ans: labor, natural resources,
capital, entrepreneurs, technology
An increase in unemployment has no affect on a
business owner. Ans: False
Please describe market equilibrium either in
your own words or according to the textbook.
Ans: 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:
Ans: the overall market value of final goods and
services produced in a country in a year.
, 2
Socialism differs from communism in that the
government has little control of important
resources rather than control of all resources.
Ans: False
An interconnected system of different
demographic factors is referred to in the book
as: Ans: a social environment
© 2025 Assignment
___________ competition exists when there is an
Guru01 - Stuvia
industry where products are identical and there
are many small sellers such as a roadside
Expert
vegetable stand. Ans: Perfect or pure
If you go to a restaurant, what is the best
definition of what you are getting? Ans: a good
and a service
Profitable businesses benefit society in all the
following ways EXCEPT: Ans: providing dental
care for ALL full and part-time employees
The essential function of economics is to study
___________. Ans: 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
, 3
difference between products (like athletic
shoes). Companies use differentiation to
stimulate demand. Ans: Monopolistic
competition
Manufacturers are motivated by profit and thus
are willing to produce more of a product at a
higher price. Ans: True
© 2025 Assignment
One example of a complementary good is: Ans:
Guru01 - Stuvia
iPod and iTunes
Expert
Profits allow a company to: Ans: invest in new
technology
What is the difference between complementary
goods and substitute goods. Ans:
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.
, 4
Change in price is an important economic
indicator because it influences consumer's
purchasing power. Ans: True
A(n) ________ seeks to primarily serve the
community through social or educational means
or "causes". Ans: non-profit or not-for-profit
organization
© 2025 Assignment
National businesses will always serve
Guru01 - Stuvia
international markets. Ans: False
Expert
A person that assumes risk and creates a
business is called: Ans: an entrepreneur
One social change to be aware of is the
______________ due to the large number of Baby
Boomers in the U.S. Ans: aging of the population
It is important to look at changes in GDP to
determine if the economy is "healthy" or
growing. Ans: True
The U.S. government can influence the economy
with fiscal policies such as increasing taxes or
increasing government spending. Ans: True
