Intro to Bus. Unit 1 Test

A business is an organization that strives for a profit by providing goods and services desired by its customers.

• True
• False

The major difference between a good and a service is how the producer uses the factors of production to create each.

• True
• False

Not-for-profit organizations have the same goals as for-profit organizations.

• True
• False

Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions.

• True
• False

It takes four consecutive quarters of decline in the GDP for economists to consider the economy to be in a recession.

• True
• False

The Federal Reserve System can print money and raise taxes.

• True
• False

Which of the following is an example of a business?

• A. Jack & Jill, a specialty clothing store for young children
• B. Wal-Mart
• C. Ford Motor Company
• D. Lawson & Tyler law offices
• E. all of the above

Which of the following is the best example of a service?

• A. the pleasure you derive from seeing a good play
• B. the license tags you purchased for your car
• C. the hamburger you bought for lunch
• D. the gallon of milk you purchased at the convenience store
• E. the grill on which you cook steak

Which of the following is the best example of a good?

• A. the physical examination you received from your doctor
• B. the birthday candles you purchased to go on your sister's birthday cake
• C. the airplane flight you took to attend a funeral
• D. the driving lessons you took

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

• A. standard of living
• B. consumer productivity
• C. input per person
• D. quality of life