Business 001 - Introduction to Business » Fall 2021 » Chapter 1 Quiz

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Question #1
The standard of living is low in Honduras. This means:
A.   it attracts risk-aversive entrepreneurs
B.   it has higher wages than the U.S.
C.   its citizens cannot afford to buy much
D.   it has a positive balance of trade
E.   it has a negative balance of trade
Question #2
The unemployment rate is the percentage of the total work force that is not working but is:
A.   on vacation
B.   physically and mentally able to work
C.   actively looking for work
D.   drawing unemployment checks
E.   laid off, terminated, or downsized due to some economic activity outside of their control
Question #3
Martha Maguire recently was laid off from her telemarketing job for a large catalog retailer. Each January, Maguire is laid off as soon as the Christmas season is over. She will be hired back sometime during the summer. In terms of unemployment, Maguire is a good example of _____ unemployment.
A.   frictional
B.   seasonal
C.   tactical
D.   structural
E.   operational
Question #4
Which of the following businesses provides its customers with a good?
A.   accounting firm
B.   hotel
C.   movie theater
D.   hair salon
E.   bicycle manufacturer
Question #5
An economic system based on complete freedom of trade and little, if any, government control is known as:
A.   democratic economy
B.   capitalism
C.   privatization
D.   utopianism
E.   socialism
Question #6
The quality of life is:
A.   higher for less developed countries like Angola, Bangladesh, and Ceylon than it is for the U.S.
B.   determined by the money left over after all expenses are paid
C.   the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time
D.   measured by subtracting the supply of goods and services from the demand for goods and services
E.   measured by the output of goods and services people can buy with the money they have
Question #7
An economic system based on competition in the marketplace and private ownership of the factors of production is known as:
A.   capitalism
B.   democratic economy
C.   socialism
D.   privatization
E.   utopianism
Question #8
Laws passed by the U.S. Congress concerning how U.S. businesses trade with Cuba would be an example of _____ factors that influence the business environment.
A.   political and legal
B.   competitive
C.   demographic
D.   social and cultural
E.   economic
Question #9
In 1998 the tourism industry in Egypt had 43 percent unemployment due to an economic downturn that gripped the country as a result of an increase of terrorists' activities. The workers in the tourism industry were experiencing _____ unemployment.
A.   seasonal
B.   frictional
C.   operational
D.   structural
E.   cyclical
Question #10
Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?
A.   natural resources
B.   expense
C.   labor
D.   capital
E.   entrepreneurship
Question #11
Tyron Lewis has recently quit his job in the administrative offices at the nearby hospital and is currently seeking a retail management position. He would be described as structurally unemployed.
A.   TRUE
B.   FALSE
Question #12
The situation in which the average of all prices of products is rising is called inflation.
A.   FALSE
B.   TRUE
Question #13
Economics is the study of a society's financial institutions.
A.   FALSE
B.   TRUE
Question #14
A farmer's market where sixty farmers come weekly to sell the produce they grow in their gardens is an example of monopolistic competition.
A.   TRUE
B.   FALSE
Question #15
The national debt is the accumulation of deficits that have occurred in the past as a result of expenditures exceeding tax revenues.
A.   FALSE
B.   TRUE
Question #16
No true examples of a pure monopoly exist today.
A.   FALSE
B.   TRUE
Question #17
A strategic alliance is a cooperative agreement between business firms.
A.   FALSE
B.   TRUE
Question #18
Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions.
A.   TRUE
B.   FALSE
Question #19
Monopolistic competition is a market structure in which entry is easy.
A.   FALSE
B.   TRUE
Question #20
People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.
A.   FALSE
B.   TRUE

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