Chapter 1—Exploring the World of Business and Economics
ESSAY
1. In your own words, describe what you “bring to the table” as a potential employee of a company
that you desire to work for.
ANS:
Answer not provided.
PTS: 1 REF: p. 5-7 OBJ: 1-1 NAT: AACSB:
Communication
TOP: Your Future in the Changing World of Business
2. How can online networking improve your chances of success in the business world?
ANS:
Answer not provided.
PTS: 1 REF: p. 6 OBJ: 1-1 NAT: AACSB:
Communication
TOP: Your Future in the Changing World of Business
3. An entrepreneur combines four kinds of resources into a business. What would be the effect on
the business if any one were left out?
ANS:
Answer not provided.
PTS: 1 REF: p. 10 OBJ: 1-2 NAT: AACSB:
Communication
TOP: Business: A Definition
4. What is profit, and why is it important to a business?
ANS:
Answer not provided.
PTS: 1 REF: p. 11 OBJ: 1-2
NAT: AACSB: Reflective Thinking TOP: Business: A Definition
5. What three activities must a business perform in order to be successful? Briefly describe each of
these and why each is essential to business success.
ANS:
Answer not provided.
PTS: 1 REF: p. 9 OBJ: 1-2 NAT: AACSB: Analytic
TOP: Business: A Definition
6. Explain how the notion of scarcity is related to personal as well as business decision making.
ANS:
Answer not provided.
PTS: 1 REF: p. 12 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
7. Explain how the basic economic questions are answered in capitalistic and command economies.
ANS:
Answer not provided.
PTS: 1 REF: p. 13-17 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
8. Why do we say that the U.S. economy is a mixed economy?
ANS:
Answer not provided.
, PTS: 1 REF: p. 15 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
9. How does socialism differ from communism?
ANS:
Answer not provided.
PTS: 1 REF: p. 16-17 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
10. Why is productivity important? How can a nation's productivity rate be improved?
ANS:
Answer not provided.
PTS: 1 REF: p. 17 OBJ: 1-4
NAT: AACSB: Reflective Thinking TOP: Measuring Economic Performance
11. What is real gross domestic product, and how does it differ from gross domestic product?
ANS:
Answer not provided.
PTS: 1 REF: p. 18 OBJ: 1-4 NAT: AACSB:
Communication
TOP: Measuring Economic Performance
12. A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations
are generally referred to as the business cycle. Describe the four different phases of the business
cycle.
ANS:
Answer not provided.
PTS: 1 REF: p. 20-21 OBJ: 1-4
NAT: AACSB: Reflective Thinking TOP: Measuring Economic Performance
13. What is the difference between monetary policies and fiscal policies? How does each affect the
nation's economy?
ANS:
Answer not provided.
PTS: 1 REF: p. 21 OBJ: 1-4 NAT: AACSB: Analytic
TOP: Measuring Economic Performance
14. In perfect competition, who sets the price of a product?
ANS:
Answer not provided.
PTS: 1 REF: p. 22 OBJ: 1-5 NAT: AACSB: Analytic
TOP: Types of Competition
15. Describe how supply and demand affect the price of a product.
ANS:
Answer not provided.
PTS: 1 REF: p. 22 OBJ: 1-5 NAT: AACSB: Analytic
TOP: Types of Competition
16. In a monopolistic competition setting, how can a manufacturer differentiate a product?
ANS:
Answer not provided.
PTS: 1 REF: p. 23 OBJ: 1-5 NAT: AACSB: Analytic
TOP: Types of Competition
, 17. How does a monopoly have complete control over the price of its product?
ANS:
Answer not provided.
PTS: 1 REF: p. 24 OBJ: 1-5 NAT: AACSB:
Communication TOP: Types of Competition
18. What effect did the Industrial Revolution and the golden age of invention have on the
development of American business?
ANS:
Answer not provided.
PTS: 1 REF: p. 24-26 OBJ: 1-6 NAT: AACSB: Analytic
TOP: American Business Today
19. What do you consider the most important challenges that American business faces today?
ANS:
Answer not provided.
PTS: 1 REF: p. 29 OBJ: 1-6
NAT: AACSB: Reflective Thinking TOP: American Business Today
MULTIPLE CHOICE
Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there,
he learned a lot about the company and how it operated. The company met its sales and revenue
goals every year. However, most of the employees had similar educational and cultural
backgrounds. He believed that the company could do much better if it cultivated an environment
that promoted many different ideas. Additionally, Satellite Communications was mostly focused
on how much revenue it earned in a given year. Jonathan felt that the most important goal should
be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal
Communications and hire employees that reflected a more diverse customer base. He was happy
to have this opportunity because it was a dream that he had always had. He had always wanted to
make his own decisions about what his company would produce and how. The only aspect of the
business he was unsure of was pricing, yet he knew this would be important for his ultimate
success.
20. Refer to Satellite Communications. Jonathan is operating in a ____ because he has the
opportunity to decide what and how to do things.
a. command economy
b. mixed economy
c. free-enterprise system
d. split economy
e. cultural diversity
, ANS: C PTS: 1 DIF: Mod. REF: p. 4
OBJ: 1-1 NAT: AACSB: Analytic TOP: Scenario Questions
21. Refer to Satellite Communications. When hiring people, Jonathan thinks it is important to
consider
a. unilateral thinking.
b. profit.
c. wage increases.
d. health benefits.
e. cultural diversity.
ANS: E PTS: 1 DIF: Easy REF: p. 6
OBJ: 1-1 NAT: AACSB: Reflective Thinking TOP: Scenario Questions
22. Refer to Satellite Communications. Which company has the correct objective?
a. Satellite Communications
b. Universal Communications
c. Both of them
d. None of them
e. Not enough information is provided.
ANS: B PTS: 1 DIF: Mod. REF: p. 10
OBJ: 1-2 NAT: AACSB: Reflective Thinking TOP: Scenario Questions
23. Refer to Satellite Communications. Now that Jonathan plans to open his own business, he needs
to look at the factors of production. Which of the following is not a factor of production?
a. Labor
b. Capital
c. Machinery
d. Demand
e. Entrepreneurship
ANS: D PTS: 1 DIF: Diff. REF: p. 12-13
OBJ: 1-3 NAT: AACSB: Analytic TOP: Scenario Questions
24. Refer to Satellite Communications. Jonathan's success will contribute to society. This is
referred to as the
a. objective.
b. market economy.
c. business cycle.
d. invisible hand.
e. standard of living.
ANS: D PTS: 1 DIF: Diff. REF: p. 14
OBJ: 1-3 NAT: AACSB: Analytic TOP: Scenario Questions
Home Inspirations
ESSAY
1. In your own words, describe what you “bring to the table” as a potential employee of a company
that you desire to work for.
ANS:
Answer not provided.
PTS: 1 REF: p. 5-7 OBJ: 1-1 NAT: AACSB:
Communication
TOP: Your Future in the Changing World of Business
2. How can online networking improve your chances of success in the business world?
ANS:
Answer not provided.
PTS: 1 REF: p. 6 OBJ: 1-1 NAT: AACSB:
Communication
TOP: Your Future in the Changing World of Business
3. An entrepreneur combines four kinds of resources into a business. What would be the effect on
the business if any one were left out?
ANS:
Answer not provided.
PTS: 1 REF: p. 10 OBJ: 1-2 NAT: AACSB:
Communication
TOP: Business: A Definition
4. What is profit, and why is it important to a business?
ANS:
Answer not provided.
PTS: 1 REF: p. 11 OBJ: 1-2
NAT: AACSB: Reflective Thinking TOP: Business: A Definition
5. What three activities must a business perform in order to be successful? Briefly describe each of
these and why each is essential to business success.
ANS:
Answer not provided.
PTS: 1 REF: p. 9 OBJ: 1-2 NAT: AACSB: Analytic
TOP: Business: A Definition
6. Explain how the notion of scarcity is related to personal as well as business decision making.
ANS:
Answer not provided.
PTS: 1 REF: p. 12 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
7. Explain how the basic economic questions are answered in capitalistic and command economies.
ANS:
Answer not provided.
PTS: 1 REF: p. 13-17 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
8. Why do we say that the U.S. economy is a mixed economy?
ANS:
Answer not provided.
, PTS: 1 REF: p. 15 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
9. How does socialism differ from communism?
ANS:
Answer not provided.
PTS: 1 REF: p. 16-17 OBJ: 1-3
NAT: AACSB: Reflective Thinking TOP: Types of Economic Systems
10. Why is productivity important? How can a nation's productivity rate be improved?
ANS:
Answer not provided.
PTS: 1 REF: p. 17 OBJ: 1-4
NAT: AACSB: Reflective Thinking TOP: Measuring Economic Performance
11. What is real gross domestic product, and how does it differ from gross domestic product?
ANS:
Answer not provided.
PTS: 1 REF: p. 18 OBJ: 1-4 NAT: AACSB:
Communication
TOP: Measuring Economic Performance
12. A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations
are generally referred to as the business cycle. Describe the four different phases of the business
cycle.
ANS:
Answer not provided.
PTS: 1 REF: p. 20-21 OBJ: 1-4
NAT: AACSB: Reflective Thinking TOP: Measuring Economic Performance
13. What is the difference between monetary policies and fiscal policies? How does each affect the
nation's economy?
ANS:
Answer not provided.
PTS: 1 REF: p. 21 OBJ: 1-4 NAT: AACSB: Analytic
TOP: Measuring Economic Performance
14. In perfect competition, who sets the price of a product?
ANS:
Answer not provided.
PTS: 1 REF: p. 22 OBJ: 1-5 NAT: AACSB: Analytic
TOP: Types of Competition
15. Describe how supply and demand affect the price of a product.
ANS:
Answer not provided.
PTS: 1 REF: p. 22 OBJ: 1-5 NAT: AACSB: Analytic
TOP: Types of Competition
16. In a monopolistic competition setting, how can a manufacturer differentiate a product?
ANS:
Answer not provided.
PTS: 1 REF: p. 23 OBJ: 1-5 NAT: AACSB: Analytic
TOP: Types of Competition
, 17. How does a monopoly have complete control over the price of its product?
ANS:
Answer not provided.
PTS: 1 REF: p. 24 OBJ: 1-5 NAT: AACSB:
Communication TOP: Types of Competition
18. What effect did the Industrial Revolution and the golden age of invention have on the
development of American business?
ANS:
Answer not provided.
PTS: 1 REF: p. 24-26 OBJ: 1-6 NAT: AACSB: Analytic
TOP: American Business Today
19. What do you consider the most important challenges that American business faces today?
ANS:
Answer not provided.
PTS: 1 REF: p. 29 OBJ: 1-6
NAT: AACSB: Reflective Thinking TOP: American Business Today
MULTIPLE CHOICE
Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there,
he learned a lot about the company and how it operated. The company met its sales and revenue
goals every year. However, most of the employees had similar educational and cultural
backgrounds. He believed that the company could do much better if it cultivated an environment
that promoted many different ideas. Additionally, Satellite Communications was mostly focused
on how much revenue it earned in a given year. Jonathan felt that the most important goal should
be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal
Communications and hire employees that reflected a more diverse customer base. He was happy
to have this opportunity because it was a dream that he had always had. He had always wanted to
make his own decisions about what his company would produce and how. The only aspect of the
business he was unsure of was pricing, yet he knew this would be important for his ultimate
success.
20. Refer to Satellite Communications. Jonathan is operating in a ____ because he has the
opportunity to decide what and how to do things.
a. command economy
b. mixed economy
c. free-enterprise system
d. split economy
e. cultural diversity
, ANS: C PTS: 1 DIF: Mod. REF: p. 4
OBJ: 1-1 NAT: AACSB: Analytic TOP: Scenario Questions
21. Refer to Satellite Communications. When hiring people, Jonathan thinks it is important to
consider
a. unilateral thinking.
b. profit.
c. wage increases.
d. health benefits.
e. cultural diversity.
ANS: E PTS: 1 DIF: Easy REF: p. 6
OBJ: 1-1 NAT: AACSB: Reflective Thinking TOP: Scenario Questions
22. Refer to Satellite Communications. Which company has the correct objective?
a. Satellite Communications
b. Universal Communications
c. Both of them
d. None of them
e. Not enough information is provided.
ANS: B PTS: 1 DIF: Mod. REF: p. 10
OBJ: 1-2 NAT: AACSB: Reflective Thinking TOP: Scenario Questions
23. Refer to Satellite Communications. Now that Jonathan plans to open his own business, he needs
to look at the factors of production. Which of the following is not a factor of production?
a. Labor
b. Capital
c. Machinery
d. Demand
e. Entrepreneurship
ANS: D PTS: 1 DIF: Diff. REF: p. 12-13
OBJ: 1-3 NAT: AACSB: Analytic TOP: Scenario Questions
24. Refer to Satellite Communications. Jonathan's success will contribute to society. This is
referred to as the
a. objective.
b. market economy.
c. business cycle.
d. invisible hand.
e. standard of living.
ANS: D PTS: 1 DIF: Diff. REF: p. 14
OBJ: 1-3 NAT: AACSB: Analytic TOP: Scenario Questions
Home Inspirations
