Test Bank for Karakowsky and Guriel, The Context of Business. Questions and Answers

1) Examples of factors of production includes labour, knowledge workers, entrepreneurs
and cash.
a. True
b. False

Answer: b
Diff: 2
Type: TF
Page Reference: 197
Skill: recall
Objective: Chapter 6-LO1

2) An economic environment is made up of 3 key groups including businesses, charitable
organizations and non-profit groups.
a. True
b. False

Answer: b
Diff: 1
Type: TF
Page Reference: 197
Skill: recall
Objective: Chapter 6-LO1

3) Using a microeconomic view, a business owner introducing a new product would have
to consider is there enough consumer demand for this product and what is the current
supply of similar products.
a. True
b. False

Answer: a
Diff: 1
Type: TF
Page Reference: 200
Skill: application
Objective: Chapter 6-LO1

4) Using a macroeconomic view, a restaurant increasing prices would have to consider
are employment levels high and is consumer spending high.


Test Bank for Karakowsky and Guriel, The Context of Business, 1e
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