Understanding of business in the business space
(Approved Answers)
___________ exists when a large number of firms produce goods that are similar but are perceived by
buyers as being different. - ANSWER - Monopolistic competition
Which Congressional Act provided protection for whistle-blowers and required the CEO and CFO to
vouch for the firm's financial statements? - ANSWER - Sarbanes-Oaxley Act
High tax rates tend to: - ANSWER - discourage entrepreneurship
The quantity of a good or service that manufacturers or owners are willing to sell at different prices
during a specific time period is known as the: - ANSWER - supply of that product
___________ means producing items with the least amount of resources. - ANSWER - Efficiency
Businesses seek to earn a profit by providing goods and services to others - ANSWER - True
Economics is the study of how: - ANSWER - to employ resources to produce goods and services and
distribute them among competing groups and individuals.
When United Airlines joined together with Lufthansa Airlines, Air Canada, Varig, etc. in order to compete
and gain market share, United Airlines entered into a: - ANSWER - Strategic Alliance
The Nike Swoosh and the Golden Arches of McDonald's are examples of a __________.
submarine patent - ANSWER - trademark
Which of the following would be a topic emphasized in a macroeconomics course? - ANSWER - Factors
that determine how fast a nation's economy is growing
Efforts by the Federal Reserve System to control the money supply and interest rates are known as: -
ANSWER - monetary policy
Maintaining a high quality of life requires the combined efforts of businesses, nonprofit organizations,
and government agencies. - ANSWER - True
In countries where businesses are government owned: - ANSWER - there is less incentive to work hard
An oligopoly is a market that is characterized by: - ANSWER - a few large sellers who dominate the
market supply
With the achievements of the General Agreement of Tariffs and Trade (GATT) and the World Trade
Organization (WTO), nearly all barriers to trade expansion have finally been removed. - ANSWER - False
A typical demand curve shows that: - ANSWER - people tend to buy more of a good when its price
decreases
, Many Americans define ethical behavior according to the situation in which they find themselves. This
suggests that ________ to cheat, steal, or lie. - ANSWER - it might be okay
Adam Smith believed that countries would prosper if businesspeople were free to start and run their
own businesses, because businesspeople would make a profit by providing the goods, services and ideas
that others in the economy wanted. This was called the: - ANSWER - invisible hand
Senator Bud Jette is alarmed at the state of the economy. Unemployment is high and GDP is low.
Senator Jette has called for Congress to take decisive action to increase its expenditures and cut taxes in
order to stimulate the economy. The actions called for by Senator Jette are examples of the
government's use of: - ANSWER - fiscal policy
An example of foreign direct investment would be Pepsi granting a Japanese firm the use of its formula
and trademark for a fee. - ANSWER - false
Revenue is the amount a business earns above and beyond what it spends for expenses and costs. -
ANSWER - False
The section of the Bankruptcy Code that allows a business to reorganize and pay only a limited
proportion of its debts is Chapter: - ANSWER - ch 11
A major benefit of socialism is assumed to be its: - ANSWER - emphasis on social equality
Stakeholders are all the people who stand to gain or lose by the policies and activities of a business. -
ANSWER - true
____________________ refers to a general rise in the price level of goods and services over time. -
ANSWER - Inflation
The only deposits of a rare mineral known as shiznit are found in the nation of Swanland. Since no other
nation has deposits of shiznit, Swanland has a(n)__________ in the production of this mineral. -
ANSWER - absolute advantage
The __________ represents the first attempt to establish a truly global mediation center to resolve
international trade disputes. - ANSWER - World Trade Organization
Which of the following describes the debate regarding the old-style Napster file-sharing of copyrighted
material on the Internet? - ANSWER - By allowing users to download music for free, recording
companies and artists believe that their property was stolen.
__________ refers to rules, statutes, codes, and regulations established to provide a legal framework
within which business may be conducted. - ANSWER - business law
Which theory states that a nation should produce and sell goods to other countries that it produces
most efficiently, and buy goods produced more efficiently by other countries? - ANSWER - comparative
advantage
(Approved Answers)
___________ exists when a large number of firms produce goods that are similar but are perceived by
buyers as being different. - ANSWER - Monopolistic competition
Which Congressional Act provided protection for whistle-blowers and required the CEO and CFO to
vouch for the firm's financial statements? - ANSWER - Sarbanes-Oaxley Act
High tax rates tend to: - ANSWER - discourage entrepreneurship
The quantity of a good or service that manufacturers or owners are willing to sell at different prices
during a specific time period is known as the: - ANSWER - supply of that product
___________ means producing items with the least amount of resources. - ANSWER - Efficiency
Businesses seek to earn a profit by providing goods and services to others - ANSWER - True
Economics is the study of how: - ANSWER - to employ resources to produce goods and services and
distribute them among competing groups and individuals.
When United Airlines joined together with Lufthansa Airlines, Air Canada, Varig, etc. in order to compete
and gain market share, United Airlines entered into a: - ANSWER - Strategic Alliance
The Nike Swoosh and the Golden Arches of McDonald's are examples of a __________.
submarine patent - ANSWER - trademark
Which of the following would be a topic emphasized in a macroeconomics course? - ANSWER - Factors
that determine how fast a nation's economy is growing
Efforts by the Federal Reserve System to control the money supply and interest rates are known as: -
ANSWER - monetary policy
Maintaining a high quality of life requires the combined efforts of businesses, nonprofit organizations,
and government agencies. - ANSWER - True
In countries where businesses are government owned: - ANSWER - there is less incentive to work hard
An oligopoly is a market that is characterized by: - ANSWER - a few large sellers who dominate the
market supply
With the achievements of the General Agreement of Tariffs and Trade (GATT) and the World Trade
Organization (WTO), nearly all barriers to trade expansion have finally been removed. - ANSWER - False
A typical demand curve shows that: - ANSWER - people tend to buy more of a good when its price
decreases
, Many Americans define ethical behavior according to the situation in which they find themselves. This
suggests that ________ to cheat, steal, or lie. - ANSWER - it might be okay
Adam Smith believed that countries would prosper if businesspeople were free to start and run their
own businesses, because businesspeople would make a profit by providing the goods, services and ideas
that others in the economy wanted. This was called the: - ANSWER - invisible hand
Senator Bud Jette is alarmed at the state of the economy. Unemployment is high and GDP is low.
Senator Jette has called for Congress to take decisive action to increase its expenditures and cut taxes in
order to stimulate the economy. The actions called for by Senator Jette are examples of the
government's use of: - ANSWER - fiscal policy
An example of foreign direct investment would be Pepsi granting a Japanese firm the use of its formula
and trademark for a fee. - ANSWER - false
Revenue is the amount a business earns above and beyond what it spends for expenses and costs. -
ANSWER - False
The section of the Bankruptcy Code that allows a business to reorganize and pay only a limited
proportion of its debts is Chapter: - ANSWER - ch 11
A major benefit of socialism is assumed to be its: - ANSWER - emphasis on social equality
Stakeholders are all the people who stand to gain or lose by the policies and activities of a business. -
ANSWER - true
____________________ refers to a general rise in the price level of goods and services over time. -
ANSWER - Inflation
The only deposits of a rare mineral known as shiznit are found in the nation of Swanland. Since no other
nation has deposits of shiznit, Swanland has a(n)__________ in the production of this mineral. -
ANSWER - absolute advantage
The __________ represents the first attempt to establish a truly global mediation center to resolve
international trade disputes. - ANSWER - World Trade Organization
Which of the following describes the debate regarding the old-style Napster file-sharing of copyrighted
material on the Internet? - ANSWER - By allowing users to download music for free, recording
companies and artists believe that their property was stolen.
__________ refers to rules, statutes, codes, and regulations established to provide a legal framework
within which business may be conducted. - ANSWER - business law
Which theory states that a nation should produce and sell goods to other countries that it produces
most efficiently, and buy goods produced more efficiently by other countries? - ANSWER - comparative
advantage
