Intro to Business Ch 1 Test Prep

A depression is a severe recession that lasts longer than a recession.

• True

• False

Employees are all the different people or groups of people who are affected by an organization’s policies, decisions, and activities.

• True

• False

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

• True

• False

Inflation is a general rise in the level of prices experienced by people in a nation.

• True

• False

The four resources that must be combined to organize and operate a business are material, human, e-business, and financial.

• True

• False

Spin cycle is the recurrence of periods of growth and recession in a nation’s economic activity.

• True

• False

According to Adam Smith, under laissez-faire capitalism, everyone should be allowed to work toward their own economic gain without government interference.

• True

• False

Competition is rivalry among businesses for sales to potential customers.

• True

• False

Gross Domestic Product is the percentage of a nation’s labor force unemployed at any time.

• True

• False

Capitalism is an economic system in which individuals own and operate the majority of businesses that provide goods and services.

• True

• False