BUS 100 Final Exam Questions And Answers (100% correct) Latest Complete Study Document.

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Chapter 1 The U.S. Business Environment 25) Which environment is NOT an important dimension of a business organization's external environment? A) the political-legal environment B) the sociocultur... al environment C) the technological environment D) the corporate cultural environment E) the global business environment Answer: D Explanation: D) The external environment consists of everything outside an organization's boundaries that might affect it. The corporate cultural environment is internal to the organization. Page Ref: 6-7 Difficulty: Easy Objective: 1.2 Learning Outcome: Compare and contrast different economic systems Skill: Concept 26) What term denotes a nation's basis for allocating its resources among its citizens? A) capital structure B) economic system C) ownership processes D) distribution network E) national regulations Answer: B Explanation: B) An economic system is a nation's system for allocating its resources among its citizens, both individuals and organizations. Page Ref: 7 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: Concept 27) What is the process for converting government enterprises into individually owned firms known as? A) production allocation B) privatization C) entrepreneurship D) demand assessment E) profit maximization Answer: B Explanation: B) Privatization is the process of converting government enterprises into privately owned companies, which will then have the right to run such a business for profit. Page Ref: 10 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: Concept 28) What is the point at which the supply curve and the demand curve intersect on a graph? A) equilibrium price B) decision point C) surplus price D) perfect price E) parity point Answer: A Explanation: A) The equilibrium price is determined by the shape of the supply curve and the demand curve when plotted by amount available and price. The equilibrium price is set at the point at which the supply curve and the demand curve intersect. Page Ref: 12 Difficulty: Easy Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 29) What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal? A) the going rate B) the margin rate C) the market price D) the optimum price E) the cost price Answer: C Explanation: C) The market price is set by the demand and supply for a given good. It is defined as the price at which the quantity of goods demanded and the quantity of goods supplied are equal. Page Ref: 12 Difficulty: Easy Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 30) What occurs when the quantity demanded exceeds the quantity supplied? A) demand deficit B) surplus C) equilibrium point D) shortage E) supply schedule Answer: D Explanation: D) When demand exceeds supply, there will not be enough goods available to meet the demand for them. This is known as a shortage. Page Ref: 12 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 31) Which of the following does NOT represent a degree of competition in a private enterprise system? A) oligopoly B) socialism C) monopoly D) perfect competition E) monopolistic competition Answer: B Explanation: B) Competition is the economic condition in which there are certain demands that can be met by more than one business, so businesses in the same industry compete for the same resources or customers. Page Ref: 14 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 32) Which of the following exists when an industry or market has only one producer? A) competition B) oligopoly C) monopoly D) communism E) socialism Answer: C Explanation: C) A monopoly is a market or industry in which there is only one producer that supplies a certain product. Monopolies in the United States economy are either discouraged or regulated so that prices are not too high. Page Ref: 16 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 33) Which term refers to the pattern of short-term ups and downs in an economy? A) aggregate output B) business cycle C) standard of living D) balance of payments E) demand and supply schedule Answer: B Explanation: B) The business cycle is the short-term pattern of economic expansions and contractions. Page Ref: 17 Difficulty: Easy Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 34) Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase? A) business cycle B) demand and supply schedule C) standard of living D) aggregate output E) consumer price index Answer: C Explanation: C) The standard of living is the total quantity and quality of goods and services that people can purchase with the currency used in their economic system. Standard of living is determined by economic conditions such as inflation and purchasing power. Page Ref: 17 Difficulty: Easy Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 35) Which term refers to the total value of all goods and services produced within a given period by a national economy? A) standard of living B) aggregate output C) gross domestic product D) gross national produce E) purchasing power parity Answer: C Explanation: C) Gross domestic product is the total value of all goods and services produced within a given period by a national economy through domestic factors of production. Page Ref: 17 Difficulty: Easy Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 36) Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas? A) GDP per capita B) standard of living C) consumer price index D) purchasing power parity E) Big Mac index Answer: C Explanation: C) The consumer price index is a measure of the prices of typical products purchased by consumers living in urban areas. It is used as a comparative standard, to tell whether inflation or deflation is occurring, for example. Page Ref: 22 Difficulty: Easy Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept [Show More]

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