Intro to Business 100 Study.com Ch 1 Practice Exam

Which of the following is a factor of microeconomics?

• Unemployment rates

• Supply and demand for a commodity

• Interest rates

• Inflation

A social environment is BEST described as:

• Core values and practices in which a business is based.

• The social relations between company employees and management.

• Society's artificial constructs in relation to the natural environment.

• The natural environment in which a person lives.

A business influences its external environment by:

• Rejecting the public's opinion of the business.

• Making sure its internal environment is as strong as possible.

• Utilizing advertising and public relations strategies.

• Producing less expensive goods and services.

Why would a niche strategy represent an example of a selective strategy?

• Aims to take full control of a specific market and neglects all others

• It focuses on companies that do not have a large market share and purchases them.

• It aims to produce a certain product at the highest level of quality possible.

• It focuses on specific groups of consumers rather than trying to compete for the entire market.

In the year 2100, the economic market now reflects the theoretical idea of perfect competition. James is deciding which car he will buy. What will be the only perceived difference for him?

• Price

• Quantity

• Information

• Quality

Which of the following is NOT true about technology?

• It can improve productivity.

• It's always good for everyone.

• It can create new markets.

• It can reduce costs.

Which of the following is NOT a barrier to trade?

• Terrorism

• Tariffs

• War

• Economic integration

How do macro-economic factors and micro-economic factors differ?

• Macroeconomic factors focus on unemployment, inflation and taxes, while microeconomic factors deal with individual decision-making.

• Macroeconomic factors focus on consumer preference, while microeconomic factors focus on monetary policy and regulating the amount of money present in the economy.

• Macroeconomic factors focus on the local economy, while microeconomic factors focus on the world economy.

• Macroeconomic factors focus on the desires of the individual, while microeconomic factors determine the supply and demand required.

Which of the following is considered part of an external business environment?

• Severance packages for senior management

• Office space

• Standard operating procedures

• Fiscal policy that affects export

The legal environment of a business includes the laws and regulations to which a business is subject, as well as the enforcement agencies and the judicial system. Which of the following describes the legal environment of a business?

• It allows a business to reduce their liability risk and to identify issues that require a lawyer's help

• It helps a business avoid being fined for violating the law

• It helps because there is no one-size-fits-all set of laws that applies to every business

• All answers are correct