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WorksheetsInto to Business Final Exam Review
Total questions: 73
Worksheet time: 1hrs 13mins
Which of the following is an economic need?
a new television
water
concert tickets
a loaded SUV
Goods...
are things you purchase only after your basic needs are met
have no physical characteristics
must be provided to you at the time you want to consume them
are things you can see and touch
The largest producer of goods and services in the world is...
Japan
Russia
the United States
China
People producing goods and services are called...
human resources
natural resources
capital resources
limited resources
If everybody had an unlimited supply of economic resources, which of the following would not exist?
wants
capitalism
scarcity
needs
Jonah had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. Jonah has...
purchased a service
made an economic tradeoff
made a poor economic decision
ignored the concept of scarcity
What is the first step in the decision-making process?
identify the choices
define the problem
evaluate the choices
act on your choice
What is the final step of the decision-making process?
act on your choice
make a decision
review your decision
define the problem
In every nation on Earth...
economic resources are owned and controlled by the government
workers have the ability to produce the same goods and services
individuals have the same wants and needs
people must deal with the problem of scarcity
The government of Erewhon owns and controls all economic resources and decides how those resources will be used. The government even assigns people specific jobs and careers. Erewhon uses which type of economic system?
market economy
command economy
traditional economy
laissez-faire economy
Who owns the economic resources in a market economy?
the people of the country
the tribal elders
the government
business people and entrepreneurs but not consumers
Which type of economy is usually centered mainly on meeting people's basic needs?
market economy
command economy
mixed economy
traditional economy
Which of the following is NOT an especially important principle of the U.S. economic system?
freedom of choice
private property
tradition
profit
In the U.S., you can own anything you want and decide what you want to do with it, as long as it does not violate the law. This describes the principle of...
scarcity
competition
the command economy
the right of private property
The rivalry among businesses to sell their goods and services is known as...
competition
entrepreneurship
capitalism
cornering the market
Generally, as the price of a product increases...
consumers will be willing to purchase larger quantities of the product
businesses will be willing to supply larger quantities of the product
the supply curve will slope downward
demand will increase
Which of the following scenarios will probably cause prices to drop?
A new snack food is very popular, and only one company produces it
A big snowstorm is approaching, and the only hardware store in town has just a few snow shovels left in stock
Many companies begin producing a product in relatively high demand
Half of the world's diamond mines shut down production
Which of the following is probably a competitor to Mary's CD Shop?
Food Clown grocery store
B Flat Records and Tapes
Al's Garage
Donna's Donut Hut
GDP measures a country's economic output during...
one week
one month
one year
five years
GDP does not include...
consumer spending for food
the value of the work you do for yourself
government spending to pay employees
business spending for equipment
Which of these items would be counted when measuring GDP?
tomatoes still growing on the vine
sheets of steel
rolls of raw fabric
a fully assembled washing machine
Diving GDP by the total population of a country results in that country
GDP per capita
gross GDP rate
unemployment rate
personal income per capita
All of the following people are part of the labor force EXCEPT
Martin, who was laid off from his accountant job last week and has answered three want ads this month
Cody, who works as a supervisor in a nonprofit organization
Lindsay, a stay-at-home mom with two children
Marie, a 17-year-old who works part-time at the corner drug store
If wages increase faster than gains in productivity, prices will rise. Why?
Business owners will demand higher prices because they know workers have ore money to spend
Because demand will increase for all products
Because the cost of producing goods decreases
Because the cost of producing goods increases
In the early 1890's, the average employee in the United States worked about how many hours per week?
40
60
75
100
Which of the following probably would result in a DECREASE in worker productivity?
An office replaces its 10-year-old computers with brand-new machines and the latest software
A company pays for raises for top management by laying off 60 percent of its employees
A factory trains workers how to use shop equipment more efficiently
The boss promises a bonus to all employees who come into work over the weekend to finish and important project
At the peak of the business cycle is...
recovery
depression
recession
prosperity
Which of the following is NOT a characteristic of a depression?
high demand for goods and services
a prolonged period of high unemployment
business failures
GDP falls rapidly
If GDP growth slows for at least _____ quarter(s) in a calendar year, the economy is probably in a recession.
4
3
2
1
A recession often affects some groups of workers in related businesses. The drop in related businesses is called...
the ripple effect
the business cycle
the placebo effect
the halo effect
Inflation...
increases the buying power of the dollar
always discourages economic growth
tends to decrease wages
is most harmful to people living on fixed incomes
Suppose wages are going up faster than prices. What is the most likely effect?
Consumers will begin to buy more products businesses will need to hire more workers, and unemployment will go down
A time of economic recovery will begin soon
Unemployment will worsen because businesses will tend to hire fewer workers
A period of deflation will begin soon
The interest rate banks charge their best business customers is the...
discount rate
prime rate
mortgage rate
T-bill rate
The major influence on the level of interest rate is...
the supply and demand for money
the unemployment rate
the consumer price index
the rate of inflation
Which of the following is an example of a capital project?
A large corporation gives all employees a 5 percent wage increase
A small office buys several boxes of paper for the printer
A mid-size company restocks the supply cabinet with pencils and markers
A small business purchases two new pickup trucks
If you purchase a corporate or government bond, you are a(n)...
creditor
stockholder
entrepreneur
partner
All of the following are non-renewable resources EXCEPT...
oil
gas
lumber
coal
The Age Discrimination in Employment Act protects all persons aged _____ and older from employers who attempt to use age as a basis for employment decisions.
30
40
50
60
_____ are principles of morality or rules of conduct.
Customs
Traditions
Cultures
Ethics
Which question should you NOT ask yourself when considering the ethics of a business situation?
Is the action legal?
Does the action violate professional standards?
Who is affected by the action?
Can I get away with this action?
Government is mainly concerned with all of the following roles EXCEPT
making a profit
regulating utilities
hiring public employees
providing services to citizens
In the United States, police and fire protection is usually provided by...
the federal government
the state government
the local government
large corporations
Valid, enforceable contracts must contain consideration, which is defined as...
something of measurable value that must be exchanged by the parties involved
wording that is kind and unobjectionable to the parties involved
the requirement that those entering into the contract must be of legal age and mentally competent
the requirement that the contract must be for a product or service that may be legally sold
A patent gives an investor of a new product the sole right to make, use, or sell the item for...
7 years
17 years
25 years
50 years
Which of the following is a way the United States government gets involved in business activities?
It orders certain people to take specific jobs
It tells all businesses what they should produce and what they can charge their customers
It owns almost all of the factors of production
It attempts to prevent unfair business practices
Which of the following would NOT be considered a utility company?
a gasoline station
a telephone company
a water works
an electric company
Suppose one company owned all of the grocery stores in your state. This situation would constitute a(n)...
monopoly
union
competitive environment
cartel
Antitrust laws protect consumers from all of the following EXCEPT...
false advertising
deceptive packaging
products becoming out-of-date too quickly
misleading labeling
In the U.S., total government purchases of goods and services make up about _____ percent of all the goods and services the country produces.
10
20
50
75
About how many American workers are public employees?
1 out of every 2 workers
1 out of every 9 workers
1 out of every 17 workers
1 out of every 50 workers
The largest source of revenue for the federal government is the...
inheritance tax
luxury tax
corporate income tax
individual income tax
Property tax revenue is used to pay for all of the following EXCEPT...
schools
police protection
Medicare and Medicaid
community parks
A state or local tax on goods and services that is collected by the seller is called a...
sales tax
income tax
property tax
gift tax
Governments borrow money by selling...
stock
bonds
promissory notes
mutual funds
People born between 1946 and 1964 are generally referred to as...
bohemians
Generation X
Generation Y
baby boomers
Over the next decade, which of the following groups will experience a DECLINE in employment growth rates in the United States?
Asian-American workers
Hispanic-American workers
white workers
African-American workers
What percentage of the U.S. workforce is made up of contingent workers?
1 percent
5 percent
20 percent
35 percent
About what percentage of U.S. businesses employ 100 or more workers?
1 percent
5 percent
20 percent
35 percent
Every business performs all of the following activities EXCEPT...
maintaining business records
manufacturing products
raising capital
buying goods and services
Which of the following types of business is NOT a producer?
pharmacy
appliance factory
coal mine
chicken farm
Which major category of business is the fastest-growing in the U.S. economy?
producer
manufacturer
intermediary
services business
Business activities start with...
service businesses
producers
intermediaries
marketers
Proprietorships...
are owned and controlled by two or more people who have entered into a written agreement
account for the largest percentage of business revenues in the U.S.
are the easiest form of business to start
protect the liability of the business owners to only the amount of money they have invested directly in the business
Of the MAJOR forms of business ownership in the U.S., which is the LEAST common?
partnership
franchise
corporation
proprietorship
Which of the following would typically NOT be specified in a partnership agreement?
the business name
the number of hours per week the business will operate
the amount of investment of each partner
the level of authority each partner has
A written legal document defining ownership and operating procedures and conditions for a corporation is called the...
corporate code of ethics
partnership agreement
articles of confederation
articles of incorporation
The people who make the major policy and financial decisions for a corporation are called the...
stockholders
owners
board of directors
partners
A unique business organized by two or more other businesses to operate for a limited time and for a specific project is called a...
joint venture
limited liability partnerships
limited liability company
nonprofit corporation
A(n) _____ is a written contract granting permission to operate a business to sell products and services in a set way.
license
cooperative agreement
partnership agreement
franchise
A precise statement of results a business expects to achieve is a...
mission statement
goal
policy
procedure
The right to make decisions about how responsibilities should be achieved is called...
lliability
span of control
accountability
authority
Employees at the Trexel Company are frequently confused about their assignments, and many employees are unclear about who exactly they report to. Trexel Company does not seem to provide an adequate...
mission statement
span of control
unity of command
matrix structure
A major advantage of a functional organizational structure is that...
people work with others who have the same skills
all of the people with similar jobs will be paid the same salary
people working in one function have little interaction with people in other parts of the business
people often become more focused on their specific function than on the success of the whole business
