Test Bank for Business in Action, 15th edition by Courtland L. Bovee.pdf

,DOWNLOAD THE Test Bank for Business in Action 8th Edition Bovee
c c c c c c c c c c




BusinesscincAction,c8ec(Bovee)
Chapterc2c c UnderstandingcBasiccEconomics

1) iscthecstudycofchowcacsocietycusescscarcecresourcesctocproducecandcdistributecgoods.
A) Opportunityccosts
B) Economics
C) Capitalism
D) Entrepreneurship
E) Socialism
cAnswer:c B

Explanation:c Economicsciscthecstudycofchowcacsocietycusescitscscarcecresourcesctocproducecandcdistri
butecgoodscandcservices.
Difficulty:c 1:cEasy
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.

2) Microeconomicsciscthecstudycofc .
A) theccostscofcproductioncascacmeanscofcstimulatingcthececonomy
B) thecapplicationcofceconomiccandcfinancialcdatacandcstatistics
C) thecoverallcworkingcofcanceconomycincthecsocietycincludingcitscmonetarycandcfiscalcpolicies
D) policiescthatcraiseccapitalcandclaborcoutputcbycincreasingcthecincentivectocproduce
E) economiccbehaviorcamongcconsumerscandcbusinessesc
Answer:c E
Explanation:c Thecstudycofceconomiccbehaviorcamongcconsumers,cbusinesses,candcindustriescthatcco
llectivelycdeterminecthecquantitycofcgoodscandcservicescdemandedcandcsuppliedcatcdifferentcpricescis
ctermedcmicroeconomics.

Difficulty:c 2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.

3) Whichcofcthecfollowingcrefersctocpeoplecandctheircindividualctalentscandccapabilities?
A) naturalcresources
B) knowledge
C) capitalcinvestments
D) humancresources
E) entrepreneurship
cAnswer:c D

Explanation:c Humancresourcescarecpeoplecandctheircindividualctalentscandccapacities.cDifficulty:c
2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.




1
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,DOWNLOAD THE Test Bank for Business in Action 8th Edition Bovee
c c c c c c c c c c




4) Thecmoney,cequipment,candcbuildingscthatcacbusinesscneedscincorderctocproducecgoodscandcse
rvicescareccalledc .
A) naturalcresources
B) humancresources
C) capital
D) knowledge
E) entrepreneurship
cAnswer:c C

Explanation:c Capitalcincludescmoney,ccomputers,cmachines,ctools,candcbuildingscthatcacbusinesscne
edscincorderctocproducecgoodscandcservices.
Difficulty:c 1:cEasy
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.

5) iscleadcbycinnovation,cinitiative,candcthecwillingnessctoctakecthecriskscinccreatingcandco
peratingcbusinesses.
A) Capitalization
B) Socialization
C) Macroeconomics
D) Economiccfreedom
E) Entrepreneurship
cAnswer:c E

Explanation:c Entrepreneurshipciscthecspiritcofcinnovation,cthecinitiative,candcthecwillingnessctoctakect
hecriskscinvolvedcinccreatingcandcoperatingcbusinesses.
Difficulty:c 2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.

6) Whichcofcthecfollowingchasctheceffectcofccreatingccompetitioncforcfinitecresources,ctherebycfo
rcingctrade-offscbycparticipantscincthececonomy?
A) redundancy
B) scarcity
C) opportunityccosts
D) freecmarketcsystems
E) plannedcsystems
cAnswer:c B

Explanation:c Scarcitycdoesn'tcmeancacshortagecofcacparticularcresource;crather,citcmeanscthatcthecreso
urcechascacfinitecsupply.cScarcitychasctwocpowerfulceffects:cItccreatesccompetitioncforcresources,cand
citcforcesctrade-offsconcthecpartcofceverycparticipantcincthececonomy.

Difficulty:c 2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.




2
Copyrightc©c2017cPearsoncEducation,cInc.
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, DOWNLOAD THE Test Bank for Business in Action 8th Edition Bovee
c c c c c c c c c c




7) Ofcallcthecalternativescnotcselected,ctheconecwithcthechighestcvaluecrepresentscthec
ofcthecactionctaken.
A) opportunityccost
B) trade-offs
C) scarcitycvalue
D) finitecsupply
E) affordability
cAnswer:c A

Explanation:c Opportunityccostciscacwayctocmeasurecthecvaluecofcwhatcyoucgavecupcwhencyoucpursue
dcacdifferentcopportunity.
Difficulty:c 2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.

8) Whocarecthosecemployeescwhosecmainccontributionctocancorganizationciscthecapplicationcofcb
usinesscknowledge?
A) entrepreneurs
B) knowledgecworkers
C) economists
D) capitalist
E) humancresources
cAnswer:c B

Explanation:c Knowledgecworkers,cemployeescwhosecprimaryccontributionciscthecacquisitioncandcap
plicationcofcbusinesscknowledge,carecackeyceconomiccresourcecforcbusinessescinctoday'sceconomy.
Difficulty:c 2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.

9) Whichcfactorcofcproductioncrepresentsctheccollectivecintelligencecofcancorganization?
A) naturalcresources
B) humancresources
C) capital
D) entrepreneurship
E) knowledge
cAnswer:c E

Explanation:c Eachcsocietycmustcdecidechowctocusecitsceconomiccresources,corcfactorscofcproduction.
cKnowledgecisctheccollectivecintelligencecofcancorganization.

Difficulty:c 2:cModerate
AACSB:c Applicationcofcknowledge
LO:c 2.1:cDefinececonomics,candcexplaincwhycscarcitycisccentralctoceconomiccdecisioncmaking.




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Copyrightc©c2017cPearsoncEducation,cInc.
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