Chapter 6 & 7 Quiz

The difference between earned income and costs is

• finance

• start-up costs

• profit

• revenue

Coal-mining and construction companies are examples of

• industrial businesses

• goods-producing businesses

• service businesses

• domestic businesses

When Apple Computer built a personal computer, it was an

example of

• global competition

• a new-product franchise

• a marketing activity

• an innovation

A result of global competition on the U.S. auto industry was that

• laws were passed to prevent foreign auto sales in America

• U.S. manufacturers improved quality and efficiency

• consumers preferred U.S. brands over foreign brands of cars

• no companies were able to make a profit

A company that is committed to total quality management

• hires managers with college degrees

• asks employees to emphasize efficiency rather than effectiveness

• uses teamwork and improved work procedures

• all of the answers are correct

Efficiency can be achieved in all of the following ways EXCEPT

• specialization of effort

• setting a lower price than competitors

• using better technology and innovation

• reorganizing work activities

The gross domestic product (GDP) of the United States is approximately equal to that of

• China

• all of the countries in the European Union

• England and France

• the rest of the world

An important measure of individual well-being is

• the poverty rate

• average family income

• the standard of living

• All the answers are correct.

Match the following definitions to the right word.

• GDP

• Producing products & services quickly, at low cost, without wasting time and resources

• Efficiency

• Total market value of all goods and services produced in a country in a year

• Downsize

• Someone who starts, manages and owns a business

• Entrepreneur

• To reduce the amount of good and services produced and the number of employees

• Innovation

• Something completely new

The north central and northeastern states where the major manu-

facturing firms once dominated is called the

• Rust Belt

• Frost Belt

• Sun Belt

• Snow Belt