1. The customs, values, and demographic characteristics of the society in which an
organization functions are the principal elements of the political-legal
environment.
A) True
*B) False
2. Physical resources include the data and other information used by businesses.
A) True
*B) False
3. Economic systems differ in how factors of production are used.
*A) True
B) False
4. The point at which the supply curve and the demand curve intersect is the
market price.
*A) True
B) False
5. Aggregate output refers to a company's annual production of goods or services.
A) True
*B) False
1
,6. The United States government manages the collection and spending of its
revenues through monetary policy.
A) True
*B) False
7. The pursuit of profits is how a business differs from organizations such as most
universities, hospitals, and government agencies.
*A) True
B) False
8. The technological environment includes only electronics and
telecommunications used to perform business activities.
A) True
*B) False
9. One of the four elements that are necessary for private enterprise to be carried
out is reasonable prices.
A) True
*B) False
2
,10. In typical modern oligopolies, the large capital investment necessary to enter
the market discourages new competitors.
*A) True
B) False
11. Natural monopolies exist partly because duplication of effort and resources
would be wasteful in some cases.
*A) True
B) False
12. Economic indicators help to assess the performance of an economy.
*A) True
B) False
13. The primary measure of growth in the business cycle is inflation.
A) True
*B) False
14. Gross domestic product (GDP) refers to the total value of goods and services
produced by a national economy within a given period regardless of where the
factors of production are located.
A) True
*B) False
3
, 15. Inflation results in increased purchasing power for the consumer.
A) True
*B) False
16. Tax increases and decreases are a form of fiscal policy.
*A) True
B) False
17. The government can influence the availability of capital by working through
the Federal Reserve System.
*A) True
B) False
18. Stabilization policy is made up of both monetary and fiscal policy.
*A) True
B) False
19. Product differentiation is common in a market characterized by monopolistic
competition.
*A) True
B) False
4
organization functions are the principal elements of the political-legal
environment.
A) True
*B) False
2. Physical resources include the data and other information used by businesses.
A) True
*B) False
3. Economic systems differ in how factors of production are used.
*A) True
B) False
4. The point at which the supply curve and the demand curve intersect is the
market price.
*A) True
B) False
5. Aggregate output refers to a company's annual production of goods or services.
A) True
*B) False
1
,6. The United States government manages the collection and spending of its
revenues through monetary policy.
A) True
*B) False
7. The pursuit of profits is how a business differs from organizations such as most
universities, hospitals, and government agencies.
*A) True
B) False
8. The technological environment includes only electronics and
telecommunications used to perform business activities.
A) True
*B) False
9. One of the four elements that are necessary for private enterprise to be carried
out is reasonable prices.
A) True
*B) False
2
,10. In typical modern oligopolies, the large capital investment necessary to enter
the market discourages new competitors.
*A) True
B) False
11. Natural monopolies exist partly because duplication of effort and resources
would be wasteful in some cases.
*A) True
B) False
12. Economic indicators help to assess the performance of an economy.
*A) True
B) False
13. The primary measure of growth in the business cycle is inflation.
A) True
*B) False
14. Gross domestic product (GDP) refers to the total value of goods and services
produced by a national economy within a given period regardless of where the
factors of production are located.
A) True
*B) False
3
, 15. Inflation results in increased purchasing power for the consumer.
A) True
*B) False
16. Tax increases and decreases are a form of fiscal policy.
*A) True
B) False
17. The government can influence the availability of capital by working through
the Federal Reserve System.
*A) True
B) False
18. Stabilization policy is made up of both monetary and fiscal policy.
*A) True
B) False
19. Product differentiation is common in a market characterized by monopolistic
competition.
*A) True
B) False
4
