1) An economic environment refers to the:
a. political, economic and social conditions in which people live
b. economic conditions in which an organization operates
c. the global environment of business
d. a more general meaning of globalization
Answer: b
Diff: 2
Type: MC
Page Reference: 197
Skill: application
Objective: Chapter 6-LO1
2) In Year 1, Jerry decided to give up a job that paid an annual salary of $100,000 to go
back to school. College tuition cost a total of $50,000 for one year. However, in Year 2,
after graduation, Jerry got a job that paid $200,000. The opportunity cost of getting an
education for Jerry is:
a. $ 50,000
b. $150,000
c. $100,000
d. none of the above
Answer: c
Diff: 2
Type: MC
Page Reference: 197
Skill: application
Objective: Chapter 6-LO1
3) A factor of production includes all of the following except:
a. cash
b. labour
c. natural resources
d. entrepreneurs
Answer: a
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
, Diff: 2
Type: MC
Page Reference: 197
Skill: recall
Objective: Chapter 6-LO1
4) Pepsi, an established, global cola manufacturer, likely uses the following examples of
the factors of production today:
a. knowledge and entrepreneurs
b. labour and natural resources
c. natural resources and cash
d. cash and entrepreneurs
Answer: b
Diff: 2
Type: MC
Page Reference: 197
Skill: both
Objective: Chapter 6-LO1
5) The factors of production include all of the following except:
a. capital
b. entrepreneur
c. investors
d. natural resources
Answer: c
Diff: 2
Type: MC
Page Reference: 197
Skill: recall
Objective: Chapter 6-LO1
6) Macroeconomics is the study of:
a. the individual in the economy
b. business in the economy
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 2
a. political, economic and social conditions in which people live
b. economic conditions in which an organization operates
c. the global environment of business
d. a more general meaning of globalization
Answer: b
Diff: 2
Type: MC
Page Reference: 197
Skill: application
Objective: Chapter 6-LO1
2) In Year 1, Jerry decided to give up a job that paid an annual salary of $100,000 to go
back to school. College tuition cost a total of $50,000 for one year. However, in Year 2,
after graduation, Jerry got a job that paid $200,000. The opportunity cost of getting an
education for Jerry is:
a. $ 50,000
b. $150,000
c. $100,000
d. none of the above
Answer: c
Diff: 2
Type: MC
Page Reference: 197
Skill: application
Objective: Chapter 6-LO1
3) A factor of production includes all of the following except:
a. cash
b. labour
c. natural resources
d. entrepreneurs
Answer: a
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
, Diff: 2
Type: MC
Page Reference: 197
Skill: recall
Objective: Chapter 6-LO1
4) Pepsi, an established, global cola manufacturer, likely uses the following examples of
the factors of production today:
a. knowledge and entrepreneurs
b. labour and natural resources
c. natural resources and cash
d. cash and entrepreneurs
Answer: b
Diff: 2
Type: MC
Page Reference: 197
Skill: both
Objective: Chapter 6-LO1
5) The factors of production include all of the following except:
a. capital
b. entrepreneur
c. investors
d. natural resources
Answer: c
Diff: 2
Type: MC
Page Reference: 197
Skill: recall
Objective: Chapter 6-LO1
6) Macroeconomics is the study of:
a. the individual in the economy
b. business in the economy
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 2
