EXAM 1& 2 STUDY GUIDE
Q Which of the following statements is TRUE of a not-for-profit organization?
A It can earn excess revenue.
Q Which of the following problems is potentially posed by an aging
population?
A higher taxes
Q Competition affects companies in all of the following ways EXCEPT
________.
A forcing them to increase their production levels
Q A multinational company ________.
A may be challenged by language barriers
Q Nina's furniture store has had a successful year and made a significant
profit. Which of the following actions using Nina's store profits would BEST
increase productivity?
A Develop a website that would enable customers to shop and place orders online.
Q Carla wants to start a new software company, but she lives in a remote
community where few skilled software programmers live. Which of the
following is the BEST cost-effective strategy for building her workforce
A use the Internet and other technologies to hire remote employees who want to
telecommute
Q Which of the following would MOST likely happen to companies that are
less efficient than their competitors
A They would close down.
Q Keeping up with new technology is ________.
,A important for individuals as well as businesses
Q Leroy owns a small hardware store that is known for its high level of
customer service. A large chain home improvement store has just opened up
in his community. Which of the following would BEST help Leroy deal with his
new competitor?
A advertising aggressively to increase consumer awareness of his reputation for
service
Q Addison wants her new t-shirt store to be environmentally friendly. With the
concept of the green economy in mind, which of the following business
initiatives would BEST make her business greener?
A installing solar panels on her store's roof to provide electricity
Q The Federal Reserve System (the Fed) manages the country's money
supply through its monetary policy to control inflation by doing all of the
following EXCEPT ________.
A increasing taxes
Q One example of complementary goods is ________.
A cell phone and wireless phone service
Q ________ unemployment refers to a temporary state of unemployment in
which workers move between jobs, careers, and locations.
A Frictional
Q John is an employee at a car manufacturer. Today he has come into work
to find that production has stopped because the government has determined
that the steel used in the cars will be better used in the manufacture of a new
railway line. John doesn't mind, because although his wages are low, he gets
, paid whether there is any work for him to do or not. John MOST likely lives in
a ________ economy.
A planned
Q The value of the CPI's "market basket" is determined by ________.
A the combined prices of a specified set of goods and services
Q An automobile assembly plant might measure ________ in terms of the
number of cars created in a given period of time, per work-hours needed to
create them.
A productivity
Q Taken together, the iPod and iTunes are ________ goods.
A complementary
Q ________ is unemployment that occurs when workers are let go due to a
downturn in the business cycle.
A Cyclical
Q ________ is a decrease in the rate of inflation.
A Disinflation
Q Pilar's daughter wants a Betty the Builder doll for Christmas. When Pilar
gets to the toy store they are sold out, so she goes to another store. There
she is told that they have a limited quantity, which will go on special sale at 6
a.m. the next morning—and that she'd better get in line early. This is an
example of which of the following determinants of demand?
Q Which of the following statements is TRUE of a not-for-profit organization?
A It can earn excess revenue.
Q Which of the following problems is potentially posed by an aging
population?
A higher taxes
Q Competition affects companies in all of the following ways EXCEPT
________.
A forcing them to increase their production levels
Q A multinational company ________.
A may be challenged by language barriers
Q Nina's furniture store has had a successful year and made a significant
profit. Which of the following actions using Nina's store profits would BEST
increase productivity?
A Develop a website that would enable customers to shop and place orders online.
Q Carla wants to start a new software company, but she lives in a remote
community where few skilled software programmers live. Which of the
following is the BEST cost-effective strategy for building her workforce
A use the Internet and other technologies to hire remote employees who want to
telecommute
Q Which of the following would MOST likely happen to companies that are
less efficient than their competitors
A They would close down.
Q Keeping up with new technology is ________.
,A important for individuals as well as businesses
Q Leroy owns a small hardware store that is known for its high level of
customer service. A large chain home improvement store has just opened up
in his community. Which of the following would BEST help Leroy deal with his
new competitor?
A advertising aggressively to increase consumer awareness of his reputation for
service
Q Addison wants her new t-shirt store to be environmentally friendly. With the
concept of the green economy in mind, which of the following business
initiatives would BEST make her business greener?
A installing solar panels on her store's roof to provide electricity
Q The Federal Reserve System (the Fed) manages the country's money
supply through its monetary policy to control inflation by doing all of the
following EXCEPT ________.
A increasing taxes
Q One example of complementary goods is ________.
A cell phone and wireless phone service
Q ________ unemployment refers to a temporary state of unemployment in
which workers move between jobs, careers, and locations.
A Frictional
Q John is an employee at a car manufacturer. Today he has come into work
to find that production has stopped because the government has determined
that the steel used in the cars will be better used in the manufacture of a new
railway line. John doesn't mind, because although his wages are low, he gets
, paid whether there is any work for him to do or not. John MOST likely lives in
a ________ economy.
A planned
Q The value of the CPI's "market basket" is determined by ________.
A the combined prices of a specified set of goods and services
Q An automobile assembly plant might measure ________ in terms of the
number of cars created in a given period of time, per work-hours needed to
create them.
A productivity
Q Taken together, the iPod and iTunes are ________ goods.
A complementary
Q ________ is unemployment that occurs when workers are let go due to a
downturn in the business cycle.
A Cyclical
Q ________ is a decrease in the rate of inflation.
A Disinflation
Q Pilar's daughter wants a Betty the Builder doll for Christmas. When Pilar
gets to the toy store they are sold out, so she goes to another store. There
she is told that they have a limited quantity, which will go on special sale at 6
a.m. the next morning—and that she'd better get in line early. This is an
example of which of the following determinants of demand?
