Business Essentials, 9th edition by (Ebert/Griffin) testbank
1) The customs, values, and demographic characteristics of the society in which an
organization functions are the principal elements of the political-legal e
...
Business Essentials, 9th edition by (Ebert/Griffin) testbank
1) The customs, values, and demographic characteristics of the society in which an
organization functions are the principal elements of the political-legal environment.
Answer: FALSE
Explanation: These are the main considerations of the sociocultural environment. The
political-legal environment reflects the relationship between business and government,
usually in the form of government regulation of business.
Page Ref: 5
Difficulty: Easy
Objective: 1.2
Learning Outcome: Compare and contrast different economic systems
Skill: Concept
2) Physical resources include the data and other information used by businesses.
Answer: FALSE
Explanation: Physical resources are the tangible resources that organizations use to
conduct their business such as natural resources, raw materials, offices, storage and
production facilities, parts and supplies, computers and peripherals, and a variety of other
equipment.
Page Ref: 8
Difficulty: Easy
Objective: 1.3
Learning Outcome: Identify the different types of technologies used in business and
describe their uses
Skill: Concept
3) Economic systems differ in how factors of production are used.
Answer: TRUE
Explanation: Different types of economic systems manage the factors of production
differently. In capitalism, for instance, they are managed by private individuals with
capital resources, while in a command economy the government manages the factors of
Current 51155455.1 17-Jan-17 18:36
production.
Page Ref: 9
Difficulty: Easy
Objective: 1.3
Learning Outcome: Compare and contrast different economic systems
Skill: Concept
Current 51155455.1 17-Jan-17 18:36
4) The point at which the supply curve and the demand curve intersect is the market
price.
Answer: TRUE
Explanation: When demand and supply curves are plotted on the same graph, the point
at which they intersect is the point at which demand matches supply, which determines
the market price.
Page Ref: 12
Difficulty: Easy
AACSB: Analytic skills
Objective: 1.4
Learning Outcome: Discuss strategies for setting and adjusting prices
Skill: Concept
5) Aggregate output refers to a company's annual production of goods or services.
Answer: FALSE
Explanation: Aggregate output is the total quantity of goods and services produced by
an economic system during a given period.
Page Ref: 17
Difficulty: Moderate
Objective: 1.5
Learning Outcome: Explain how economic performance is monitored
Skill: Concept
6) The United States government manages the collection and spending of its revenues
through monetary policy.
Answer: FALSE
Explanation: The United States government manages the collection and spending of its
revenues through fiscal policy.
Page Ref: 23
Difficulty: Moderate
Objective: 1.5
Learning Outcome: Compare and contrast different economic systems
Skill: Concept
7) The pursuit of profits is how a business differs from organizations such as most
universities, hospitals, and government agencies.
Answer: TRUE
Explanation: The pursuit of profits distinguishes a business from those
organizations—such as most universities, hospitals, and government agencies—that run
in much the same way but that generally don't seek profits.
Page Ref: 4
Difficulty: Easy
Objective: 1.1
Learning Outcome: Explain the entrepreneurship process
Skill: Concept
Current 51155455.1 17-Jan-17 18:36
8) The technological environment includes only electronics and telecommunications used
to perform business activities.
Answer: FALSE
Explanation: Technology includes human knowledge, work methods, physical
equipment, electronics and telecommunications, and various processing systems that are
used to perform business activities.
Page Ref: 6
Difficulty: Moderate
AACSB: Analytic skills
Objective: 1.2
Learning Outcome: Identify the different types of technologies used in business and
describe their uses
Skill: Concept
9) One of the four elements that are necessary for private enterprise to be carried out is
reasonable prices.
Answer: FALSE
Explanation: The four elements that must be present in private enterprise are private
property rights, freedom of choice, profits, and competition.
Page Ref: 14
Difficulty: Moderate
Objective: 1.4
Learning Outcome: Discuss strategies for setting and adjusting prices
Skill: Concept
10) In typical modern oligopolies, the large capital investment necessary to enter the
market discourages new competitors.
Answer: TRUE
Explanation: A major factor discouraging new competitors in current oligopolistic
industries such as automobiles and large commercial aircraft is the huge capital
investment that would be needed to start a new company.
Page Ref: 15
Difficulty: Moderate
Objective: 1.4
Learning Outcome: Compare and contrast different economic systems
Skill: Concept
11) Natural monopolies exist partly because duplication of effort and resources would be
wasteful in some cases.
Answer: TRUE
Explanation: Many electric companies, for example, are natural monopolies because
they can supply all the power needed in a local area.
Page Ref: 16
Difficulty: Moderate
Objective: 1.4
Learning Outcome: Compare and contrast different economic systems
Skill: Concept
[Show More]
.png)
