Post-Test

Which of the following statements about government deficit spending is most accurate?

• Although the government used to run big deficits, it has consistently run surpluses since the late 1980s.

• One reason the government has a hard time reducing deficits is that there is a great deal of pressure on the government to increase its spending each year.

• The federal government violates the law by running deficits because the Constitution requires the government to balance its budget each year.

• The government has used deficit spending to lower the national debt.

The standard of living for a nation’s people depends mainly on

• the quality of the natural environment

• how much political freedom they have

• their incomes and the prices of the good and services they buy

• the amount of labor and capital available employed in the manufacturing sector

Human resources include:

• The ability to combine all resources into a production process

• All human effort (mental and physical) used to produce a good or provide a service

• All natural resources taken from the environment that are productive

• All man-made goods used to create other goods or services

As competition increase, prices

• usually will decrease

• Usually increases as well

• Are not affected so will usually not change

• Cooperative

Which theory states that a nation should produce and sell goods that it produces most efficiently to other countries, and buy goods that are produced more efficiently by other countries?

• Comparative advantage

• Absolute advantage

• Bilateral advantage

• Mercantilism

When managers work to create conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the (a)   function of management.

• controlling

• leading

• planning

• organizing

Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?

• Culture

• Ethnocentricity

• Social beliefs

• Institutional society

A(n) (a)   is a person who assumes the risk of starting a business.

• manager

• stakeholder

• entrepreneur

• private investor

Which of the following types of business is not a producer?

• Pharmacy

• Chicken farm

• Coal mine

• Shoes factory

People born between 1946 and 1964 are generally referred to as

• Bohemians

• Generation X

• Generation Y

• Baby boomers